Centre's nod awaited to bring roughs cargo from Dubai
Post Date: 05 Jul 2011 Viewed: 499
Dubai has cleared the export of rough diamonds from Zimbabwe's Marange diamond field worth Rs 700 crore belonging to Indian diamond traders held since November 2010 in its free trade zone. The diamantaires are awaiting the central government's nod to bring the goods to the world's biggest diamond polishing centre in Surat.
Industry sources said the Kimberley Process (KP) meeting held recently in Congo's Kinshasa concluded without any consensus on the approval to the export rough diamonds from Zimbabwe following opposition from Western countries including US, EU, Canada and human rights organizations.
KP chairman Mathieu Yamba had taken a unilateral decision to allow Zimbabwe to export its rough diamonds from the controversial Marange diamond field.
However, the Indian government is yet to clear its stand on whether to accept the decision taken by the KP chairman or to support the western countries and human right organizations.
As the rough diamond prices have appreciated by almost 50 per cent in the past one year, the industry has set its eye on the huge diamond resources in Zimbabwe, which is believed to ease the price escalation in the international market.
"Industry is in dire need of rough diamonds. Dubai has cleared a huge consignment of rough diamonds worth Rs 700 crore, but it remains to be seen whether the central government would allow the diamantaires to import it into India considering the fact that the US, EU and Canada are against Zimbabwe," said a DTC sightholder asking anonymity.
Industry analysts said rough diamonds from Zimbabwe were certified by KP monitor Abbey Chikane before an embargo was placed on their export from Zimbabwe in the KP's plenary meeting held in the first week of November 2010. The goods were brought to Dubai with KP certificate, but the authorities had to seize the goods after the KP placed an embargo on November 4, 2010.
"Dubai has cleared Rs.700 crore worth of rough diamonds, but they are of no use for the diamantaires here until and unless the government gives a final approval," said Aniruddha Lidbide, senior diamond analyst.
Meanwhile, the Gems and Jewellery Export Promotion Council (GJEPC), the apex body of Indian diamond industry, is learnt to be making efforts to bring the rough diamonds from Dubai to India.
Sanjay Kothari, vice-chairman of GJEPC, said, "Dubai has cleared the rough diamond consignment after getting approval from KP's WGM. We have taken up the issue with the Central Government to make a special provision to import the diamonds into the country."