The Surat diamond industry has once again started efforts to secure direct supplies of rough diamonds from nations producing gemstones.
The Surat diamond industry has once again started efforts to secure direct supplies of rough diamonds from nations producing gemstones.
A delegation of Surat Diamond Association, which represents Surat diamond industry, met the Russian consul general, Alexander Mantytsky in Mumbai on Thursday and discussed the possibilities of starting direct rough diamond supplies between Russia and Surat. “Direct rough supply from mining centres to polishing centres like Surat is ideal for our industry. It will cut costs and also ensure better availability of rough diamonds for our manufacturers,” Surat Diamond Association president, Rohit Mehta said.
Russian-state-owned Alrosa is the second largest diamond mining company after De Beers, and any tie-up with Russia for direct sourcing of rough can be extremely fruitful for the local diamond industry. “We can eliminate additional costs if rough diamonds are supplied directly from mining nations to polishing hubs, instead of routing them through trading centres,” an industry expert said.
Surat is the hub of diamond cutting and polishing, and processes seven out of every 10 diamonds produced globally. However, the diamonds travel a long way before reaching the diamond city. Rough diamonds are mined in Russia, Botswana, Australia, Canada, and other countries, from where they are sent to trading hubs like Antwerp or Israel, before being brought to Surat by Indian manufacturers.
“Direct supply of rough makes sense, as it would mean more economic benefits for both the producer and processor, since the traders are out of the picture,” said KK Sharma, executive director, Indian Diamond Institute.
However, this is not the first time efforts are being made to procure direct rough supplies from Surat. A couple of years back, a high-profile delegation from the African nation of Angola, one of the largest producers of rough, was invited to Surat to promote trade ties. While a formal agreement could not be worked out, the visit resulted in many diamond companies in Surat starting direct procurement of rough diamonds from Angola.
In another effort to promote direct procurement of rough diamonds from mining nations, leading Indian companies joined hands and formed Diamond India Limited, for rough imports. DIL is successfully importing rough at regular intervals for its members from various producing countries.
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