Indian Minister in Nam on diamond hunt

INDIA’S Minister for Commerce, Jairam Ramesh, will visit Namibia tomorrow, along with a delegation of rough diamond buyers.

The visit, which will also take Ramesh to Angola, is aimed at exploring ways for India to acquire raw material directly from Africa instead of sourcing it from European middlemen. India presently procures rough diamonds through a variety of sources with the bulk of it coming through Antwerp in Belgium.Ramesh told the Economic Times of India that it would be in India’s long-term interest to establish direct relationships with supplier countries, cutting out all the middlemen.Namibia accounts for about six per cent of the world’s rough diamond production while Angola produces about 10 per cent of the world’s rough diamonds.Angola is also a country with which India has been trying to establish a relationship in the oil sector.According to the Economic Times, officers from that country’s Gems and Jewellery Export Promotion Council, State Trading Corporation and MMTC Ltd would be accompanying the minister, who feels India must involve Africa in the value chain of the diamond business.The Economic Times predicted that in future, India will find it difficult to source rough diamonds unless it demonstrates to African nations that it will collaborate actively in helping them move up the value chain and assist in value addition in these producing countries.The Africanisation of the diamond-processing industry is not a threat to India but a great opportunity, “which we must proactively embrace”, Ramesh told the newspaper.He said the visit to Angola and Namibia will be followed by another one in the next couple of months to South Africa and Botswana, the other important diamond producing countries in Africa.India’s estimated imports of rough diamonds in 2007-08 are N$80 billion, while estimates of exports of cut and polished diamonds in 2007-08 are about N$112 billion.India is the world’s largest importer of rough and exporter of cut and polished diamonds with over 90 per cent market share.India’s Commerce Ministry has also started dialogue with the major diamond producing countries.Alrossa, the Russian diamond producing company, recently sold roughs directly to Indian buyers, though in small quantities.Though India has embarked on exploration of diamonds, it will take at least a decade before commercial deposits in states like Chhattisgarh, Andhra Pradesh and Karnataka are proven and established.The diamond cutting and polishing industry will continue to be entirely dependent on imports of rough diamonds for a long time to come, Ramesh said.Nampa/Economic Times of IndiaIndia presently procures rough diamonds through a variety of sources with the bulk of it coming through Antwerp in Belgium.Ramesh told the Economic Times of India that it would be in India’s long-term interest to establish direct relationships with supplier countries, cutting out all the middlemen.Namibia accounts for about six per cent of the world’s rough diamond production while Angola produces about 10 per cent of the world’s rough diamonds.Angola is also a country with which India has been trying to establish a relationship in the oil sector.According to the Economic Times, officers from that country’s Gems and Jewellery Export Promotion Council, State Trading Corporation and MMTC Ltd would be accompanying the minister, who feels India must involve Africa in the value chain of the diamond business.The Economic Times predicted that in future, India will find it difficult to source rough diamonds unless it demonstrates to African nations that it will collaborate actively in helping them move up the value chain and assist in value addition in these producing countries.The Africanisation of the diamond-processing industry is not a threat to India but a great opportunity, “which we must proactively embrace”, Ramesh told the newspaper.He said the visit to Angola and Namibia will be followed by another one in the next couple of months to South Africa and Botswana, the other important diamond producing countries in Africa.India’s estimated imports of rough diamonds in 2007-08 are N$80 billion, while estimates of exports of cut and polished diamonds in 2007-08 are about N$112 billion.India is the world’s largest importer of rough and exporter of cut and polished diamonds with over 90 per cent market share.India’s Commerce Ministry has also started dialogue with the major diamond producing countries.Alrossa, the Russian diamond producing company, recently sold roughs directly to Indian buyers, though in small quantities.Though India has embarked on exploration of diamonds, it will take at least a decade before commercial deposits in states like Chhattisgarh, Andhra Pradesh and Karnataka are proven and established.The diamond cutting and polishing industry will continue to be entirely dependent on imports of rough diamonds for a long time to come, Ramesh said.Nampa/Economic Times of India