Surat hunts diamonds in CanadaSURAT (Commodity Online): After fearing that De Beersmay cut supply of rough diamonds to Surat, the diamond polishingheadquarters in India, is now hunting for other palces to buy roughs.
A few months ago Surat diamond industry had signed an agreement to directly import roughs from the Russian diamond firm Alrosa.
After that the Surat traders are now planning to buy roughs from Canada to ensure reasonable prices and better availability.
Canadais one of the world’s largest rough diamond producing countries andSurat traders are keen to have some tie-up with mining companies therewhich will allow them direct imports of roughs.
A delegation oftraders will visit Canada to try and enter into direct import pacts.The delegation plans to meet companies that have small miningoperations as the large ones are already in pacts with the DiamondTrading Corporation.
Currently, Surat diamond processors depend on DTC for import of rough stones.
DTC,the rough diamond distribution arm of De Beers Group, has a globalmonopoly in distribution of rough diamonds and controls prices ofroughs.
Housing over 4,500 diamond processing units, Surat isconsidered the global hub for diamond cutting and polishing. India’sdiamond processing industry generates annual revenue of around Rs60,000-70,000 crore, 80 per cent of which comes from Surat-based units.
Therise in prices of rough diamonds was leading to narrowing margins ofprocessors with prices of only smaller rough diamonds fluctuating.
Accordingto Gem and Jewellery Export Council, India’s rough diamond imports in2009-10 (April-March) stood at $9.03 billion, up from $7.91 billion ayear ago.
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