The prices of rough diamonds to remain high in the coming months as the demand for diamonds has been rising in the emerging markets like India and China, while mining activity is believed to have reduced in the key mining regions across the globe, top executive from the Diamond Trading Company (DTC) said on Tuesday.
Varda Shine, chief executive officer of DTC, who was in Surat on Tuesday, informed a group of diamond industry representatives of Surat that the prices of rough diamond would remain high during the year. The hike in prices of rough diamonds was attributed to the increasing demand from emerging markets like India and China besides a steep rise in the United States. On the other hand, Shine also spoke about the reduction in diamond mining in some parts of South Africa, Russia and Australia, which is causing a supply constraint.
The diamond industry players had expressed concerns about spiralling prices of rough diamonds, which shot up by around 27 per cent during 2010. DTC, which is the sales and marketing arm of De Beers, has been the main supplier of the rough diamond to the polishing industry in India.
However, there could be some relief to the price pressure due to demand from Japan, the second-biggest market for diamonds. There will be a fresh demand as Japan recovers from the devastating Tsunami.
According industry data, the demand for diamond jewellery had increased by 31 per cent in India during 2010, while in the current year, the demand is expected to rise by 20 per cent.
Shine inaugurated a world-class diamond and jewellery training institute of Indian Diamond Institute (IDI) in Vesu near Surat. The institute has been set up under the central government's scheme of Assistance to States for Developing Export Infrastructure and Allied Activities scheme at a cost of Rs 13 crore.
The institute will have a capacity of 130 students for jewellery making and designing. "The institute would help improve skill development of the workers and provide the industry with skilled workforce," informed K K Sharma, former executive director, IDI.
