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India explores trade with South African diamond mines

A team of Indian dealers will visit South Africa next week to explore the possibility of sealing deals to source rough gems from diamond mines in the country, an industry official said on Wednesday.

India, the world's largest diamond cutting and polishing centre, imported rough diamonds worth $4.34 billion in 2000-01 compared with $4.81 billion in the previous year.

Leading diamond mining and marketing firm De Beers supplies about 50 per cent of India's need of rough diamonds. Other global marketing firms supply the rest.

"A two-member team of the Gem and Jewellery Export Promotion Council is visiting South Africa next week to explore the possibility of tie-ups with diamond mines," GJEPC secretary V S A Sury said.

Sury said Indian gems and jewellery traders wanted to establish direct tie-ups with diamond mines across the globe to cut costs and assure raw material supplies.

The council also plans to enter into trading agreements with mines in Canada and Russia.

"We are in talks with diamond mines in Canada to source rough diamonds. We have invited them to visit India to get a feel of our facilities and strengths," he said.

Indian firms recently bought diamonds worth $4.5 million from some Russian mines which are likely to reach here this month.

"The deal with the Russian mines was a one-time arrangement. We are planning to send a delegation to Russia to work out some long-term arrangements for regular supply," he said.

India's exports of cut and polished diamonds declined to $6.2 billion in 2000-01 from $6.6 billion in the year-ago period, mainly due to the economic slowdown in the United States.

The United States is a major buyer of Indian cut and polished gems and jewellery.

Gems and jewellery exports account for about 22 percent of India's total exports.

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