Phenomenal Rise in Import of Synthetic Diamonds Raises Concerns

Amid serious concerns raised by the global diamond industry over undisclosed mixing of 'lab-grown' diamonds with natural gems in India, it has been revealed that there has been a phenomenal rise, about 53%, in import of synthetic diamonds in the country till September end.

In the import-export data published by Gems and Jewellery Export Promotion Council (GJEPC), India imported Rs 475 crore worth of synthetic rough diamonds between April-September compared to Rs 224 crore during the same period last year, an increase of around 53%.

However, the import of rough synthetic stones increased phenomenally in the month of September this year to Rs 75 crore compared to Rs 25 crore during the same month previous year.

Last year, in September, Bharat Diamond Bourse (BDB) in Mumbai decided to act against traders and manufacturers who dealt in lab-grown diamonds. A year back, the GJEPC and trade bodies had formed Natural Diamond Monitoring Committee (NDMC) as well. Top ranking officials of the bourse warned members of strict action — including ouster and restricted trade relations — if they traded in these diamonds.

In an impact, over a dozen traders moved out of BDB — home to some 2,500 small and large diamond traders — to swankier offices in Central Mumbai's Bandra-Kurla Complex. A protracted battle between two sections of the diamond trading had begun.

The story is different in the world's largest diamond manufacturing centre in Surat. Due to lack of monitoring, trade in synthetic diamonds is going on unabated. Many small and medium diamond units are manufacturing lab-grown diamonds, though clandestinely, and indulging in mixing of the stones into the natural diamond parcels.

Recently, the GJEPC outlined the suite of measures to prevent 'mixing' of lab-grown diamonds in the supply chain at the US Jewellery Council forum on Undisclosed Synthetic Diamonds, held at the Waldorf Astoria in New York City on November 1.

A study commissioned by the GJEPC estimated that about 127.4 million carats of lab-grown gems are produced every year, representing about 2%-3% of gem-quality production.

"The undisclosed mixing of diamonds is a serious cause of concern. The figures provided by GJEPC are official, otherwise huge amount of synthetic diamonds flow from China. The industry is so big that it is difficult for the GJEPC to keep close vigil on each one of the unit owners," said diamond analyst, Aniruddha Lidbide.