GJEPC concerned after new sightholder list

The Gem & Jewellery Export Promotion Council (GJEPC) has regarded the new list of Diamond Trading Company (DTC)sightholders announced for 2008-2011, as unfair and a concern for the Indian Diamond trade. The list had shrunk the numbers from the previous 94 to 75, in which eight sightholders from India and three Indian-owned firms in Belgium have been eliminated. Chairman, GJEPC, Sanjay A. Kothari mentioned that the existing sightholders now would have to bear the losses of investments they had made in expansions and manufacturing.

Another key factor was the suplpy of roughs which DTC said had influenced it to reduce its numbers. GJEPC stated that the supply shortage is no more than 10% of current global demand. Kothari said, “This move by DTC will consolidate the business in few hands only, as small and medium enterprises dependent for rough diamond supplies through intra-trade dealings with sight holders will discontinue. This will lead to massive unemployment in the sector and will affect medium manufacturers.”

Also, DTC had decided to add six new clients and increase the allocations of rough diamonds to several existing firms. Amongst the six new firms, three are Indian companies.

GJEPC suggested that DTC could have remedied the situation by increasing its supplies to the Hindustan Diamond Company (HDC), which is a joint venture between De Beers and the government of India and a part of De Beers’ Diamdel system. The system ensures supply of roughs to the ‘open’ market outside its own ‘closed’ client list.