|
|
India
By Zainab Morbiwala
A report detailing the threats posed by synthetic diamonds to the natural diamond industry and possible solutions to those threats is scheduled for release at the end of this month, according to the Gem and Jewellery Export Promotion Council (GJEPC). Vipul Shah, chairman of GJEPC, shared some advance details of the report in an exclusive interview with Rapaport Magazine. “Through the report, we will learn more about the production of the synthetic diamonds in terms of where they are being produced and in what quantity, where the demand for them is coming from, how the supply chain is set up and what steps we need to take going forward to counter the challenges they pose for our industry,” Shah said. He added that, based on the report’s findings, the council will organize a meeting of all the stakeholders to determine what the industry can do to minimize the impact of synthetic diamonds on their sales and on the image and reputation of natural diamonds with consumers.
An industry spokesperson who asked to remain anonymous acknowledged the concern regarding synthetics within the industry. “Synthetic diamonds do pose a threat for the entire industry,” he said. “Of late, there have been many companies floating synthetic diamonds and some of these activities are being undertaken in an unethical way where the consumer is kept in the dark about the diamonds’ production. It would indeed be helpful if GJEPC, along with the Indian Ministry of Commerce and Industry, could take preventive measures to curb the production, spread and acceptability of synthetic diamonds.” The source emphasized that it is important to act promptly to combat synthetics in the marketplace, especially given the overriding fear by diamond traders “that synthetic diamonds could eventually become more accepted than natural diamonds.”
Dubai, the city of gold, is attempting to make its mark on the world map with its newfound interest in diamonds. The city is mounting a campaign to become a destination where customers can lay their hands on beautiful diamond jewelry as well as gold. The GJEPC and the Dubai Gold and Jewellery Group (DGJG) are organizing the first-ever Global Gem & Jewellery Fair (GGJF) to serve as a platform for international buyers and sellers in trading top-quality gems and couture jewelry. Scheduled to take place at Atlantis, The Palm, in Dubai, from March 20 through 22, 2014, the show is expected to have more than 100 exhibitors. GJEPC members are looking forward to it. “It is a matter of pride to associate ourselves with DGJG for such an event and we are sure that beginning this year, we will be cooperating to make this one of the most eagerly awaited international jewelry shows on the industry calendar,” said Shah. “With this show, we hope to further establish India as one of the most favorable destinations for sourcing diamonds. At the same time, the show will help to establish Dubai as the global trading hub for gems and jewelry by building the infrastructure required for industry participants to trade with confidence.” The show is being designed to cater to the requirements of buyers from the Middle East, Africa, Eastern Europe, Russia and the Commonwealth of Independent States (CIS) region. Ahmed Bin Sulayem, executive chair of Dubai Multi Commodities Centre (DMCC), which is managing the fair, stated, “It is vital to continuously create new opportunities to nurture key international relations with strong trading partners such as India. That is why we are collaborating with the GJEPC to introduce this inaugural fair to the region and the Gulf Cooperation Council (GGC) market. We are proud to host this event and to welcome industry participants to Dubai.”
Recent export numbers put the industry in a joyous mood. Dinesh Navadia, president of Surat Diamond Association (SDA), told Rapaport Magazine that “Comparing the export figures of December 2013, we have seen almost a 15 percent monthly increase and this is reason enough to feel happy. We are very much optimistic for a good 2014 for the industry. With GJEPC taking strong actions against the production and acceptability of laboratory-produced diamonds, the industry can be assured of fair trade as well.” To help protect banks’ trust in the diamond industry, Navadia has written to the Reserve Bank of India (RBI), asking it to look into the financing extended to big diamond companies — he chose not to disclose names — who subsequently defaulted on their payments, giving the entire industry a bad name. Commenting, he said, “It is disheartening to know that for a few, the entire industry has to suffer. It is important that banks at the level of individual borrowers do a thorough investigation before extending loans to companies.”Article from the Rapaport Magazine - February 2014. To subscribe click here.
|
|
|
|