GJEPC and Alrosa sign MoU

The Gem & Jewellery Export Promotion Council (GJEPC) today, signed a memorandum of understanding (MoU) with state-owned Russian diamond mining firm Alrosa, to share trade and statistical data on the diamond trade between India and Russia. The agreement was signed by GJEPC Chairman Vipul Shah and Alrosa President Fyodor Andreev. The partnership follows the growing trade between the two regions and burgeoning potential for trade.

To pursue this, India sought long-term contracts between Alrosa and the Indian cutting and polishing industry, since a while. During the visit of Russian Deputy Prime Minister Dmitry Rogozin in February 2013, Indian Commerce Minister Anand Sharma proposed that the state-owned Minerals & Metals Trading Corporation (MMTC) be made a nodal Indian agency with a long-term contract with Alrosa.

An Alrosa study team visiting India recently stated that most of the rough diamonds produced in Russia are cut and polished in India. However, direct imports of rough diamonds from Russia to India are modest, with the fiscal 2013 figure standing at some $767 million. The Indian diamond industry has been voicing the concern of indirect sourcing of rough diamonds adding to costs and increasing complexity of sourcing steady raw material. Direct imports would benefit both sides, according to the Indian diamond dealers.

For the agreement to take effect, trade procedures have to be streamlined. This association is expected to see increased exports of India’s polished diamonds to Russia.

The Indian and Russian diamond industry already share a presence in the other’s corresponding sector. Indian dealers have a significant presence at the Moscow Diamond Bourse. Russian buyers have been consistently represented in India and particularly at the India International Jewellery Show (IIJS).