Africa Exports Cap Makes India Look For Non-African Gemstones.

A shortage of coloured gemstones, due to a cap on exports or civil strife in African nations has prompted Indian gems and jewellery exporters and importers to set up a firm to engage in sourcing gem stones from across the world and distribute them in India.

The initiative was taken up by the apex body of jewellers and diamantaires, Gems and Jewellery Export Promotion Council (GJEPC), after average prices of raw coloured gemstones in the country shot up more than 50 per cent in a month. In January this year, Namibia, where some of the most active veins for gemstone mining exist, capped exports and limited it to only registered buyers. The move comes close on the heels of a similar move by South Africa and Tanzania in January this year. Kenya, the other African nation from where Indian merchants source route gemstones, is in the midst of a civil war.

The new firm is expected to come into existence by March, before the International Gems and Jewellery Show in Switzerland, where uniqueness of Indian jewellery designs will be showcased using gemstones. The firm will sell raw stones to artisans and jewellers here as a commercial venture. The new company will explore sourcing options from Thailand and CIS countries.

“A collective effort to source raw materials is the need of the hour. We have brought exporters and importers of coloured gemstones together as stakeholders in the new company. This would be a big step to initiate collective bargaining — something which China, Thailand and some other countries are already doing,” said Rajiv Jain, GJEPC chairman.

India’s gems and jewellery trade is likely to clock a 17 per cent growth in turnover, valued at $33 billion by end of the current financial year. While export and import of coloured stones form just five per cent of this, the jewellery segment that accounts for 25 per cent of the business, is highly dependent on import of coloured gemstones for higher value addition of products.

“To create a niche for Indian designs across the world, we are focussing on promoting made in India jewellery. Usage of coloured gemstones is part of our design tradition and without them significant value addition in designs in export markets would be difficult,” Jain added.

Source : mydigitalfc.com