INDIA: LARGEST IMPORTER OF ROUGH DIAMONDS

 

Rough diamonds are mined in more than 20 different countries including India. Indiaís annual production is negligible at around 19000 carats. Prior to 1986, the annual world production of rough diamonds, including all categories, was around 60 million carats.With the opening up of Argyle mines in Western Australia, the annual production has doubled to about 115 million carats in 1995.

 

 

Table - 6: World Mine Production of Rough Diamonds

 

 

(Million Carats)

 

 

 

 

Description

1990

1997

1999

2000

World Production

106.70

118.64

111.06

110.18

Australia

NA

36.00

29.78

26.20

Zaire

24.00

23.30

22.00

9.00

Botswana

17.30

17.85

21.35

24.65

Russia

15.00

13.40

16.20

20.50

South Africa

8.50

9.90

9.73

10.58

Namibia

0.80

1.44

1.61

1.50

Ghana

0.20

0.74

0.50

0.50

Central Africa Republic

0.50

0.60

0.45

0.45

Siera Leone

0.70

0.50

0.60

0.35

Liberia

0.30

0.20

0.20

0.17

Tanzania

0.00

0.13

0.23

0.32

Angola

1.30

5.34

3.62

1.61

Guinea

0.10

0.75

0.55

0.45

Other Countries

2.00

3.67

4.24

13.90

India imported about 78% of the total world production of rough diamonds in 1995, i.e., 89.9 million carats, out of the world production of 115.5 million carats. Between 1971 and 1995, world rough production increased at a compound annual rate of growth (CARG) of 4.11%, whereas India's imports increased at a rate of 15.09%.In recent years too, India's imports increased at a rate of 2.39% as compared to the decline in world production of rough diamonds at the rate of 0.55% between 1996 and 1999.

 

Table - 7: Rough Diamonds - Major Suppliers to India

 

 

 

(US $ In Million)

 

 

 

 

 

Description

90 -91

95-96

98-99

99-00

00-01

 

 

 

 

 

 

Belgium

1237.6

2068.56

2388.28

3167.75

2535.68

U.K.

636.92

860.12

658.01

983.57

1130.27

Israel

72.96

171.92

207.89

414.04

310.37

U.S.A.

13.61

8.28

9.77

14.18

17.55

Switzerland

0.26

0

17.38

21.14

12.25

Sri Lanka

0.58

0

0

0

0

Hong-Kong

0.41

137.23

118.62

292.03

323.18

Singapore

0

5.17

0

0

0

Thailand

1.84

0.48

0.02

1.94

0.9

Others

0.58

0.87

2.73

3.08

8.98

U.A.E.

0

0

21.32

49.33

167.81

Exp. of Rough†† Diamonds

0

0

-80.84

-134.76

-157.19

Total

1964.76

3252.63

3343.18

4812.30

4349.80

 

 

 

CATEGORIES OF ROUGH DIAMONDS

Rough diamonds used for processing into cut and polished diamonds are generally broken down into the following three categories:

 

Roughs Category

Weight (%)

Value (%)

 

 

 

Gem

15

78

Near Gem

40

20

Industrials

45

2

 

Gem category represents the high-end with high yield and value. Near gems are diamonds of poor quality that can be cut and polished but with a very poor yield. India has specialized in processing near-gems and near-industrials.

 

PRICES OF ROUGH AND POLISHED DIAMONDS

 

Table - 8: Average Price of Rough Diamonds Imported

 

 

 

 

and Polished Diamonds Exported

 

 

 

 

 

 

(US $ per carat)

 

 

 

 

 

 

 

 

 

 

 

 

 

Description

90 -91

95-96

98-99

99-00

00-01

01-02

Export

317

243

188

201

207

182

Import

53

36

22

36

43

33

 

Until India emerged as a diamond processing and exporting country, only gem quality roughs were cut and polished. Therefore, limited volume of diamonds was used in jewellery. For instance, in 1970 the diamonds content in the jewellery sold at retail counters worldwide was only 2.54 million carats. Indiaís exports in that year was hardly 0.50 million carats. The world consumption rose to about 15 million carat by 1992. Indiaís exportsin 1992 amounted to 9.759 millioncarats.

 

††††††††††††††††††††††

Table - 20: C.S.O. Sales of Rough Diamonds

 

 

 

 

 

(US$ Million)

 

 

 

 

 

 

Description

1990

1995

1998

1999

2000

2001

 

 

 

 

 

 

 

CSO's Sales

4167

4531

3345

5240

5670

4454

India's Off take

638

747

483

777

995

989

 

ACKNOWLEDGEMENTS:†††††††††

FINANCEMAN ASSOCIATES acknowledges the use of various printed and electronic media for compiling the content, ideas and statistics on the gems and jewellery industry presented on this web page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of published text and statistics that are in the public domain. The place of jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai, Maharashtra, India.

Copy Right © 2007 FINANCEMAN ASSOCIATES

 

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