New Delhi: Twelve Indian companies will buy diamonds worth USD 2.1 billion in the next three years directly from Russian diamond mining giant ALROSA.
These companies have signed three-year contracts with ALROSA during the ongoing World Diamond Conference being inaugurated by Prime Minister Narendra Modi and Russian President Vladimir Putin.
"We have signed 12 contracts with ALROSA today to source diamonds worth USD 2.1 billion in the next three years," Gems and Jewellery Export Promotion Council Chairman Vipul Shah said here.
Russia is the world's largest producer of diamond, while India is the world's biggest manufacturing centre for cut and polished diamonds.
The 12 companies including Kiran Gems, Asian Star and Rosy Blue India have signed separate contracts with ALROSA.
"Under the contracts, ALROSA has committed to supply diamonds worth about USD 700 million per year for a period of three years. This will help the country save considerable amount of commissions charged by trading hubs," Mumbai-based Rosy Blue India Managing Director Russell Mehta said.
Each company has tied up for different quantity and different quality of diamonds. The price at which diamonds will be supplied will be decided monthly depending on market rates, he added.
India meets its rough diamond requirement from Dubai, Antwerp and Belgium. The pact on direct supply gives an edge to Russia over these countries.
Later, an official statement said that on the sidelines of World Diamond Conference, ALROSA signed agreements for direct sale of rough diamonds with 12 Indian companies.
"Under these agreements, over the next three years, USD 2.1 billion worth of rough diamonds would be supplied to India at the rate of USD 700 million per year," it said.
Speaking at the conference, Commerce and Industry Ministry Nirmala Sitharaman said that the ministry supported the cause of eradication of conflict diamonds in India and worldwide by being a founder member of Kimberley Process Certification Scheme.
"India still has tremendous potential, not yet exploited, for diamond sector exports. India has currently the largest number of artisans for making jewellery in the world. Practically, every village boasts of a family of artisans, having a very long tradition of jewellery making," she said.
The diamond industry, the minister said, is an ideal example of 'Make in India'.
Sitharaman further added that through this conference, "we aim to address the most urgent issues being faced by the diamond industry at present - the revival of consumer enthusiasm for diamonds and the consequent increase of market share for diamond jewellery in the luxury sector."
India's diamond sector has established itself as the world's largest manufacturing centre of cut and polished diamonds for the last many years, contributing 70 per cent of the world's supply in terms of value, 85 per cent in terms of volume and 92 per cent in terms of pieces.
Surat along with Navsari, Bhavnagar, Amreli is known as the diamond manufacturing/processing hub, whereas Mumbai is viewed as the diamond trading hub.
