Officials said that there will be no double checks on India’s export of cut and polished diamonds as the country uses diamonds coming via Antwerp and other geographies, and not directly from Russia. G-7 will ban all imports of rough diamonds directly from Russia from January 1.
The ban would extend to include Russian diamonds that have been processed in third countries from March 1, with a full traceability system implemented by the start of September.
Officials said that March 1 onwards, diamonds above one carat in weight will not be accepted in the G7 while from September, this would become 0.5 carat and be subject to traceability.
“Our major concerns are addressed…India doesn’t import diamonds directly but through Antwerp, Israel and the UAE. More than 95% diamonds don’t come directly,” said an official.
This assumes significance as India cuts and polishes around 95% of the diamonds in the world.Indian diamond industry has resumed rough diamond imports from Friday, two months after it voluntarily suspended the imports in the wake of low demand.The suspension was in effect from October 15-December 15.
The suspension was collectively taken by the Gems and Jewellery Export Promotion Council (GJEPC), Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse, and Surat Diamond Association, to address the challenges related to the imbalance between demand and supply.
“The resumption of rough diamond imports after the two-month voluntary ban comes with a positive impact, firstly the stability in prices and secondly, the easing of inventory,” said Colin Shah, MD, Kama Jewelry.
With Christmas and New Year around the corner, the demand in the international markets has sprung back considerably.
“Domestically, diamond prices have shot up by 10% against the backdrop of wedding season, and the consumption trend is stronger. However, in the long run, the price dynamics will continue to be influenced by the overall geopolitical and economic conditions,” Shah said.
