Indian diamond firms queue up in Botswana

Anticipating an imminent supply crunch of rough diamonds, at least half a dozen Indian diamond-processing firms have lined up investment proposals worth over $30 million in Botswana, the African country that provides over 26 per cent of global roughs.Investments in Botswanian processing units would allow the firms to participate in the mining and beneficiation process, which will ultimately help them transport roughs to their cutting and polishing units back Diamond-mining countries have tightened norms for the supply of rough diamonds to processing units abroad. Instead, they have started encouraging processing companies to participate in mining and beneficiation through initial commitment in cutting and polishing there. Indian companies engaged in diamond processing import roughs through auctions in Antwerp. They also procure roughs from the spot market with a premium as high as 10-15 per cent.This is significant as the local processing units are facing a margin squeeze due to the high inventory, equivalent to nine months as against the usual 3-4 months of processing capacity, and huge spurt, about 15-20 per cent, in prices of roughs. India processes over 85 per cent of the global finished diamond.

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Indo Argyle Diamond Council closes

Paso Robles, Calif.—The Indo Argyle Diamond Council (IADC), a by-invitation-only, paid-membership program for Indian diamond jewelry manufacturers, will close this December because it has "accomplished all of its goals," the organization has announced.According to the IADC, over its 15-year history, the program has raised the U.S. market's awareness of India's ability to manufacture high-quality, sellable diamond jewelry in price points from mass market to high end.One of the most significant signs of the program's success has been the tremendous increase of jewelry exports from India to North America. The amount of finished-jewelry exports has gone from approximately $300 million in 1994 to $2.3 billion in 2007, the IADC reports.Another successful aspect of the program was its ability to introduce and secure appointments between IADC members and major North American retail jewelers. This was accomplished more than 3,060 times leading to every major retailer now purchasing directly from Indian jewelry manufacturers, according to the IADC. Some of these appointments took place in India during IADC-sponsored buying trips with the IADC management team.

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