Alrosa to begin direct supply of rough diamonds to India in 2015

The Dollar Business Bureau

Direct diamond trade between India and Russia is expected to benefit both countries

  Russia’s state-owned diamond mining company Alrosa will begin direct supply of rough cut diamonds to 12 Indian companies for three years beginning 2015, according to India’s Gems and Jewellery Export Promotion Council (GJEPC).  Alrosa claims that it has the world’s largest rough diamonds reserves accounts for 27% of global diamond production in terms of carats. The company targets to produce over 40 million carats by 2020. It has presence in major diamond trading centres of Antwerp, Ramat Gan, Dubai, Hong Kong, New York, and London, and is likely to begin operations in India soon after the establishment of a Special Notified Zone (SNZ) for diamonds in India.  Alrosa’s annual rough diamond sales revenues exceed $4 billion, and it is estimated that annual sales to India will be around $700 million per year in the next three years. “This represents a massive five-fold hike in the current direct supplies of rough from Alrosa to India and will provide a huge boost to the Indian manufacturers,” GJEPC says.

Source - GJEPC

The three-year contracts were signed between Illya Raschin, Acting President of Alrosa, and representatives of 12 Indian companies at the World Diamond Conference in India today. The 12 Indian companies are: Rosy Blue, Diamond india Ltd, Jasani, KiranGems, Shree Ramkrishna Exports, Hari Krishna Exports, KGK, Dimexon, Venus Jewel, Karp Impex, Sheetal Manufacturing and Asian Star. Experts say that while the partnership will benefit both countries and was long due. While India is a leading market for cut and polished (C&P) diamonds, thanks to growing expertise in the area, Russia is a leading supplier of rough diamonds. However, most of the diamonds from Russia were reaching Indian shores through diamond hubs and middlemen. India’s exports of C&P diamonds account for around 55% of India’s total gems and jewellery exports of around $35 billion. According to official sources, India imported rough diamonds worth around $16.7 billion in FY2013-14, and exported diamonds worth around $19.6 billion in the year. The establishment of the SNZ and the planned Free Trade Agreement (FTA) for the diamond sector between the two countries are expected to boost diamond trade between India and Russia.  

This article was published on December 11, 2014.