After the G7 countries on Wednesday imposed a ban on the import of Russian rough diamonds from January 1, the traders on Friday said that they are set to begin importing diamonds from December 15 – when the voluntary suspension imposed by the industry to address the imbalance between demand and supply will end – though it could mean more diamonds being mined from Africa or grown in laboratories. The two-month voluntary suspension, which began on October 15, was a collective decision taken by the Indian diamond industry, represented by the Gems and Jewellery Export Promotion Council (GJEPC), Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse and Surat Diamond Association. GJEPC chairman Vipul Shah said, “We understand the road ahead may pose challenges but we must remain cautious and prepared. Looking ahead to 2024, it is clear that ensuring balance between demand and supply will be of paramount importance. ” He added, “We are set to lift the freeze on import of rough diamonds from mining firms. We have also requested mining companies to start supplying rough diamonds to India on demand from December 15.” GJPEC Gujarat Chairman Vijay Mangukiya said that stopping the import of rough diamonds for two months has definitely benefitted the industry to curb overproduction. In its order, the G7 countries had also imposed a ban on diamonds processed by third countries, including India, from March 1. Over 30 to 35 per cent of rough diamonds polished in India are imported from the mines of Russia. Surat, which has around 5,000 diamond factories, employs over a six lakh people in the industry. The G7 members had also said that they would “establish a robust traceability-based verification and certification mechanism for rough diamonds by September 1, 2024”. Traceablity-based verification will mean that a diamond would be tracked from the time it is mined through the entire supply chain till the end consumer to ensure it is not of Russian origin. As per GJEPC data, India imports rough diamonds from companies like De Beers (Botwsana), Alrosa (Russia), Rio Tinto (Canada), Okavango Diamond Company (Botswana), Dominion diamonds (Canada) and NAMDEB (Namibia), among others. Over 80 per cent of diamonds imported to India are from De Beers, Alrosa and Rio Tinto. Last April, the US had imposed sanctions on Alrosa following the Russian invasion on Ukraine. Former Gujarat chairman of GJEPC and diamond merchant, Dinesh Navadia, said: “Among the total imports of rough diamonds from Russia, over 65 per cent are thin diamonds (a measure of the girdle of the gem), and the rest are solitaire diamonds. The gap of Russian diamonds will be filled by lab grown diamonds. The quality colour, carat and clarity of diamonds sourced from Russian mines is difficult to find in mines in other countries.” Venus Jewels owner Sevantilal Shah said there is no clarity about third countries processing the diamonds. “The vacuum created by Russian diamonds will be filled by other mining companies, but there will be variation in quality. However, we are not clear what strategy will the G7 nations adopt on the traceablity-based verification of diamonds.” The slowdown in the demand for polished natural diamonds at the international market had resulted in exports falling by 25 per cent between January and September, this year, the GJEPC had said on September 27. Following this, a voluntary decision was taken by the industry to stop import of rough diamonds for two months from October 15.
