DTC Indian
diamond shortage: Industry seen adversely hit by DTC move
150,000 Indian diamond workers will be jobless !
found januari 01 2008
at forbes.com
MUMBAI (Thomson Financial) - India's diamond industry will be adversely
affected by the De Beers Diamond Trading Co's (DTC) proposed pruning of Indian
sightholders from its list clientele, said the country's Gems and Jewellery
Export Promotion Council (GJEPC).
"The
DTC has a finite supply, which is
significantly outstripped by the volume
of rough diamonds being requested by
applicants" - DTC MD Varda Shine
DTC has compiled a new list which comes into force this year. This list has
eliminated 25 sightholders - the clients to whom the diamond distributor sells
rough diamonds. They, in turn, supply their local industries with the stones.
Those not included on the new list include eight firms in India and three
Indian-owned firms in Belgium. However, six new companies have been added to the
list including three from India.
GJEPC, the apex body of the gem and jewellery trade in India, added it
expects some 25 pct shortage in rough diamonds after March as a result of DTC's
decision, and has asked DTC to 'review and reconsider its decision-making
process'.
DTC attributed the cut in sightholders to a global shortage of rough
diamonds. However the GJEPC said that it estimates the shortfall to be no more
than 10 pct of current global demand, but DTC's cut impacts processing capacity
far above this figure.
DTC India officials were not immediately available for comment.
In 2006, DTC supplied rough diamonds worth 1.7 bln usd to India out of a
total of 8 bln usd worth of diamond imports.
GJEPC chairman Sanjay Kothari told reporters in Mumbai that India will have
to develop sourcing from alternative rough diamond suppliers and asked the
Indian government to encourage local mining.
'This move by DTC will consolidate the business in a few hands only, as small
and medium enterprises dependent for rough diamond supplies through intra-day
dealings with sightholders will discontinue,' the GJEPC said in a statement.
According to its estimates, around 150,000 Indian diamond workers will be
jobless owing to the combined factors of a shortage of rough diamonds and a drop
in export revenues linked to the weakening of the US dollar against the Indian
rupee.
TFN.newsdesk@thomson.com kbo/jro/ejb Copyright Thomson
Financial News Limited 2007
DTC Indian Diamond shortage Diamonds
news
