GJEPC stands up for diamantaires against DTC

The Gem and Jewellery Export Promotion Council (GJEPC) has expressed concern over the likely move by De Geer's Diamond Trading Company (DTC) to revoke sight - holder status. In a press release, GJEPC stated that the move will reduce the supply of rough diamonds to established companies and will put them in a fi considering huge investments made by them. This reaction has come 20 days after a section of media disclosed information about the cancellation of sight holder status for the contract period 2008-2011.

GJEPC expressed fear that this decision will result in not only a financial loss, but also a loss of trust in the industry According to GJEPC, there are eight companies from India among those who are likely to loose sight holder status along with three Belgium based firms owned by Indians. Three new diamond manufacturing units holder in India for contract period of 2008 to 2011.

GJEPC made it clear that DTC has the right to conduct its business in its own way, but this move will result in a sudden reduction in the supply of raw materials. "This move by the DTC will adversely affect small and medium cutting and polishing operation, which depend on rough diamond supplies through intra trade dealings with sight holders. Such units will be put of business, leading to massive unemployment in the sector," says Sanjay Kothari, chairman of GJEPC.

"While DTC has explained that it has no choice but to cut down on the list of sight holders due to a global shortage of rough diamond, it has confounded its own reasoning by adding six new clients and drastically increasing allocations of rough diamonds to several existing firms," GJEPC informs.

However, the council estimates that the shortage of rough diamond world - wide would be less than 10 percent of the current global demand but the cuts introduced by DTC will impact processing capacity in India.