India’s Rough Diamond Imports Still Very Limited

Still holding a tight control on expenses, Indian diamond traders cut their rough diamond purchases in February, decreasing production and selling inventoried polished diamonds. As a result, rough diamond imports were cut 77.3 percent to $210.24 million.

By volume, imports were slashed by 74.3 percent to 4.023 million carats, averaging $52.26 per carat (p/c), according to provisional data released by the Gem and Jewellery Exports Promotion Council (GJEPC).

Rough diamond purchases from traditional suppliers, De Beers and Rio Tinto’s Argyle mine, were much less than in previous years as the two miners cut production significantly. De Beers stopped mining almost completely in late December for about a month, sending workers on extended holiday vacations.

Since the start on the fiscal year in April, India has imported 112.69 million carats with a stated value of $7,249.39 million, compared to 159.75 million carats worth $9,075.36 million in the April-February 2008 period.

Rough diamond exports in February totaled $45.4 million, a decline of 24.9 percent from February 2008.