Alrosa to give full flexibility to Indian rough diamond buyers

Kolkata: The US, Europe’s richer neighbourhoods, and much of Northeast and West Asia – the main consuming markets for India’s diamond jewellery output – are shuttered, prompting Russian mining major Alrosa to allow local buyers to defer contracted rough-stone purchases until later in the year.

Alrosa’s response follows a request by the Gem & Jewellery Export Promotion Council (GJEPC) to the miner on March 14. GJEPC had requested the Russian mining major for flexibility in long-term contracts as the complete lockdown in many countries, serious travel restrictions, and downcast consumer sentiment caused retail sales to founder in January, February, and March.

“The spread of the coronavirus and counter-pandemic measures implemented around the globe have severely affected the diamond industry, and keeping this in mind, Alrosa supports its long-term clients with full flexibility for the April 2020 trading session, lifting mandatory buyout requirements,” said Jim Vimadalal, director of Alrosa’s India office.

Exports of cut and polished diamonds fell more than 40% on-year in February. Colin Shah, vice-chairman, GJEPC, said that in March, the exports of cut and polished diamonds have fallen by 70%.

“The US, Europe, and the Middle East have postponed their consignments a fortnight ago. Also, India is going through a lockdown. So exports can only resume after April 15 if the situation improves in the global markets,” said Shah.

Vimadalal said that clients may buy goods if they want, with Alrosa enabling remote diamond viewings complete with detailed certificates and images of the stones.

Customers can use this option to order goods and have them transported using a specialist shipping firm. However, Alrosa expects most of the demand will be from its domestic Russian customers.

Alrosa holds 12 contract sales a year in Russia under its Alrosa Alliance program. The company will decide on its supply policy for future sales based on the state of the market.

Courtesy: ECONOMIC TIMES