India Set to Import Zimbabwe 'Blood Diamonds'.

NEW DELHI – India is set to start imports of rough diamonds from a controversial field in Zimbabwe after a diamond regulator gave the green light to two mining operations in Marange, a top trade executive said Wednesday.

The Kimberley Process on Tuesday allowed supplies from two sites in the Marange field in southern Zimbabwe.

Gems from the field had earned the label of "blood diamonds" amid accusations of human rights abuses and were banned from world markets by the 45-member Kimberley Process in 2009.

"The imports should start within a week or two...There will be some formalities," said Rajiv Jain, chairman of India's Gem and Jewelry Export Promotion Council.

He said it was difficult to estimate the import volumes yet, but expected the South Asian nation to be a major importer.

India is one of the largest exporters of cut and polished diamonds, but has few domestic sources for the rough stones and mostly buys them from overseas.

The country's gem and jewelry exports jumped 47% to $43.1 billion in the fiscal year ended March 31, 2011, up from $29.4 billion in the previous year, according to the GJEPC.

The U.S. and Canada have been vocal opponents to allowing exports from the region, as have civil rights groups. The U.S. said it abstained from the decision at the meeting this week in Kinshasa, Congo, to avoid a "debilitating impasse" in the Kimberley Process.

The Kimberley Process is a consensus industry of government and civic society bodies charged with eliminating trade in diamonds mined in conflict situations or used to fund conflict.

Source : online.wsj.com