The Gem & Jewellery Export Promotion Council has announced that Pramod Kumar Agarwal has been elected as Chairman and Colin Shah as Vice Chairman of GJEPC for the period from 2018 to 2020. Both have been working in the industry for a number of decades, and have held various positions of responsibility in GJEPC committees over the years. The new Chairman Pramod Kumar Agarwal said, “I am committed to developing a favorable environment for the gem & jewellery trade and business during my tenure.
Recent reports ranging from the Gem and Jewellery Export Promotion Council's (GJEPC) lobbying efforts to change the Goods & Services Tax (GST) for the diamond industry, to Indian manufacturing companies looking to set up cutting and polishing units in Russia and an estimated $158 million in couriered diamond parcels seized on suspicion of tax evasion have the Indian industry hot under the collar about the GST.
Galatea Ltd., a wholly-owned subsidiary of Sarine Technologies Ltd, is taking legal action against a manufacturer in Surat, India, for their allegedly fraudulent use of Sarine's Galaxy® inclusion mapping technology and systems, the company said in a statement. Galatea claims the company has been practising deliberate under-reporting of rough stone weights and underpayment of amounts owed to Galatea for the scanning of the rough stones.
The tax regimes in the four major diamond midstream trading centers - Antwerp, India, Dubai and Israel - have been the topic of great discussion and significant change in recent years. The beginning of this year saw the tax policies in both Belgium (Antwerp) and Israel (Tel Aviv) change. These countries levied a minimum tax on diamond companies, which was levied as a percentage of the turnover. While this was termed as a “turnover-based tax”, it was never truly a turnover-based tax.
The Diamond Producers Association (DPA) launched its new “Real is Rare” advertising last night (Nov. 16) on the 18th Annual Latin Grammy Awards on Univision. The second phase of trhe campaign focuses on real, intimate moments within relationships. “The Reveal” is one of two new videos presenting a modern take on love and diamonds.
Following reports surfacing just over a week ago that Indian resource conglomerates Vedanta (controlled by London-based Indian Anil Agarwal) and Adani (controlled by Gautam Adani) might bid for a $9 billion diamond project in the country that was abandoned by Rio Tinto this year, Reuters is now reporting India’s state-owned miner NMDC Ltd plans to place a $9 billion bid for the diamond project.
It appears that Indian resources conglomerates Vedanta (controlled by London-based Indian billionaire Anil Agarwal) and Adani (controlled by fellow billionaire Gautam Adani) are considering bidding for a $9 billion diamond project in the country that was abandoned by Rio Tinto this year, reports Reuters. The central state of Madhya Pradesh was likely to invite bids in the first week of November to explore the deposit, which is estimated to have 32-34 million carats of diamond reserves, a senior state government official said. “We’re advertising only for that area in which (Rio Tint
India's exports of cut and polished diamonds gained nearly 6% in value year-over-year in September, reports the Gem and Jewellery Export Promotion Council (GJEPC). The Indian trade exported $2.65 billion worth of polished diamonds in September 2017 compared to $1.82 billion in the same month a year earlier, according to provisional data. For the first half of the financial year to date (April-September), India's polished exports are up by 1.7% in value terms, currently sitting at $11.9 billion, compared to $11.7 billion a year earlier.
India's jewelry sector can breathe a little easier after Friday's announcement of the removal of gems and jewelry from the scope of the Prevention of Money Laundering Act, writes The Hindu Business Line. The sector has been hit hard by the dual impact of demonetisation and the Goods and Sales Tax (GST). Following the move, jewelers no longer need to verify the identity of their clients by a KYC process for every transaction of Rs. 50,000 ($765) or more made through a single or multiple transactions.
According to The Economic Times, Indian diamond traders that participate in rough diamond auctions at Mumbai's Indian Diamond Trading Centre (IDTC) are complaining that taxation issues are reducing their activity to mere window shopping. "Diamantaires can see the rough diamonds they bid for at the IDTC, but the delivery doesn't happen locally .. despite their successful bids at Bharat Diamond Bourse", the newspaper writes.
The Times of India this past weekend was the bearer of somber news from the Surat diamond industry, writing that, "Most of the small and medium diamond manufacturers have literally stopped the manufacturing of diamonds ahead [of Diwali] and are waiting to down their factory shutters early." With Diwali coming on October 19 (compared to October 30 last year), De Beers CEO Bruce Cleaver was optimistic as rough diamond sales in Cycle 6 (ended 31 July) surged to $572 million.
India's exports of cut and polished diamonds fell by 6.5 percent year-over-year in August, reports the Gem and Jewellery Export Promotion Council (GJEPC). The Indian trade exported $1.82 billion in August 2017, a decline of 6.5% as compared to the $1.94B in the same month a year earlier, according to provisional data. The $1.82 billion was however higher than the $1.67 billion exported in the month of July. For the financial year to date (April-August), India's polished exports are up by a half percentage point, currently sitting at $9.25 billion, compared to $9.20 billion a year earlier.
According to industry insight data published today by De Beers Group, the shifting dynamic of women’s expanding roles in society and changing perceptions of femininity are creating new motivations of diamond jewelry acquisition. Social and economic changes have expanded the symbolism of diamond jewelry, women are now more empowered which has led to record levels of self-purchase, as well as the establishment of a new consumer type.
The Russian government wants Alrosa to offer more favorable terms to local cutters so they are able to compete in a market that’s dominated by Indian manufacturers.
Alrosa has chosen to focus on mining, where it can get bigger margins, leaving Kristall Production Corp. and other cutters to buy stones at similar terms as overseas competitors. They are struggling to compete with centers like India, the largest polishing center, due to manufacturing being cheaper - it manufactures 90% of the world’s diamonds - and a workforce of 1 million.
Alrosa’s President, Sergey Ivanov, has joined the board of the Diamond Producers Association (DPA), the Russian miner announced on Monday. Ivanov will replace the position vacated by the former Alrosa VP, Andrey Polyakov, before he left the company.
The Indian Commodity Exchange (ICEX), a screen-based online derivatives exchange for commodities, went live on August 28. ICEX commenced operations with the launch of Diamond Futures, which will be the world’s first futures exchange in diamonds. It is intended to help Indian polishing companies better hedge price risks. The diamond contracts launched by ICEX initially is in size of 1 carat with compulsory delivery. “Indian manufacturers most require this type of financial product,” said managing director and CEO Sanjit Prasad.
India's polished diamond exports showed little movement during the month of July, a traditionally slow period in the diamond and jewelry industry. According to figures published by the Gem and Jewellery Export Promotion Council (GJEPC), July exports remained flat at $1.65 billion despite a notable 25% increase in the volume of carats exported, jumping to 3.14 million from 2.5 million carats, continuing the ongoing trend toward high volumes of small, lower-quality goods. The price per carat fell accordingly to $524 from $660.
KRC Research conducted an online survey on behalf of the Diamond Producers Association (DPA) regarding US millennial women’s views on luxury goods. The results highlighted three major trends: Long term value both financially and emotionally, Pride in legitimacy of the goods purchased and the expression of self-confidence.
India's recently-adopted goods & services tax (GST) of 3% on polished diamonds, 5% service tax and 0.25% on imported rough diamonds is making life challenging for the country's 50,000 small and medium diamond manufacturing units in Gujarat, employing up to 200,000 workers. The Economic Times, citing Praveen Shankar Pandya, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), reports that due to increased compliance requirements and uncertainty over when they will get input credit refund, the viability of many of these small units is uncertain.
India's exports of polished diamonds rose 3% in value during the first quarter of 2017 (April-June) to $5.8 billion from $5.6 billion in 2016, according to provisional data released by India's Gem & Jewellery Export Promotion Council (GJEPC). In June, the Indian trade recorded a rise of 7.5% to $1.98 bn as compared to $1.84 bn in the same month in 2016. In keeping with the trend of lower-value goods being traded, the percentage increase in the volume of carats exceeded the increase in value, as the volume of polished diamond exports in Q1 rose by 7%, and in June by 17%.
India's exports of cut and polished diamonds in May increased 3.67% year-over-year to US$2.05 billion from US$1.98 bn in the same month a year earlier, according to provisional data released by The Gem & Jewellery Export Promotion Council (GJEPC). For the fiscal year to date (April-May 2017), polished exports are up a single percentage point at US$3.8 billion. Rough imports during the month were up 22.5% in value terms at US$1.86 billion compared to US$1.52 billion imported during the previous May. Rough imports have increased 5% for the first two months of the year.
Indian diamond manufacturers, brokers and merchants in the manufacturing center in Surat have unanimously decided to shut the industry for a day on June 17, demanding exemption of the polished diamonds from the 3% Goods and Service Tax (GST), writes The Times of India (TOI). They have formed a committee to lead the protest against the GST council's decison to impose 3% GST on polished diamonds and 18% GST on diamond trading.
Much to the relief of the gold jewelry and diamond processing industry, the government has made some changes to the previously announced goods and services tax (GST) rate structure, slashing the applicable rate from 18% to 5% for certain categories of goods and services - and importantly, manufacturing - related to the gem and jewelry industry. The Council’s earlier decision of 18% was met with much discontent among jewelry manufacturers, who called it impractical and likely to cause immense job losses, as well as increasing the burden on the end consumer. The new tax kicks in from July 1.
The Indian government’s decision to impose a 0.25 per cent tax on rough diamond imports under the goods and services tax regime (GST) in order to ensure traceability of diamonds will hurt India’s competitiveness, according to diamond industry representatives. India’s Gem & Jewellery Export Promotion Council (GJEPC) criticized the government’s decision to tax rough diamond imports, claiming it will damage the nation’s manufacturing sector, and is urging the government to reconsider its decision.
Acording to provisional data released by The Gem & Jewelry Export Promotion Council (GJEPC), India’s polished diamond exports fell by 2% in April to US$1.75 bn, compared with the same month a year earlier. What is telling however is that in the four months of the calendar year, polished exports have risen 2% compared with 2016, reaching $7.65 bn.
India's Gem & Jewellery Export Promotion Council (GJEPC) has reported overall growth in the industry for the financial year 2016-17 (April 2016 - March 2017), despite what Executive Director Sabyasachi Ray described as a year of “disruption”, referring to various unexpected developments like Brexit, the election of Donald Trump; and, on the homefront, the demonetisation and looming introduction of the Goods and Services Tax (GST).
HRD Antwerp officially inaugurated its new lab & office premises in Mumbai on Tuesday April 25, joined by Belgium's Secretary of State for Foreign Trade Pieter De Crem. This expansion underscores HRD Antwerp's commitment to fundamentally strengthening the ties between the world's leading diamond trading center – Antwerp – and the Bharat Diamond Bourse - the world's largest diamond bourse. “HRD Antwerp started its activities in India back in 2012, to provide faster and more convenient service to Indian diamond companies”, explains Ravi Chhabria, Managing Director of HRD Antwerp India.
The Diamond Producers Association (DPA) announced their intention to spur demand in the third largest diamond market, India, by launching their “Real is Rare” slogan in September. The DPA - an international alliance of the world’s leading diamond mining companies whose mission is to protect and promote the integrity and reputation of diamonds, and the diamond industry - initially launched its “Real is Rare” campaign in the U.S. in 2016.
Prime Minister of India Narendra Modi on Monday was on hand at the ‘Hira Bourse SEZ’ in Surat for the inauguration of HK HUB, Hari Krishna Exports' new diamond manufacturing facility. HK Hub features three buildings that will focus on cutting larger diamonds,Addressing the inaugural function with an estimated at 20,000, Prime Minister Modi urged the diamond industry in Surat to take a lead in making the country as number one in the gems and jewelry sector, saying, “We have become number one in diamond cutting, but now is the time we should become number one
Some interesting industry developments took shape at last week's Diamond Detection Expo and Symposium sponsored by India's Gem and Jewellery Export Promotion Council (GJEPC).
Kiran Gems, based in Surat, India, which is said to be the world's largest diamond manufacturing firm and among the top three jewelry suppliers to the U.S., is continuing its corporate restructuring by offloading several subsidiaries in the U.S. and Hong Kong. Kiran Jewels Inc., Unique Design, SDIL and Prestige, which are located in the United States, and Kiran Export Hong Kong will no longer belong to the Kiran Gems Private Limited group of companies. The company's announcement states that the restructuring will technically end all the relations between these companies and Kiran Gems Pvt.
Twelve suspected Russian gangsters stole $9-10 million in diamonds from wholesalers in Midtown’s Diamond District, federal prosecutors said Wednesday. A long-running investigation into international diamond fraud led to the arrest of ten (or nine, depending on source) Russians who allegedly cost their victims nearly $10 million, reports several U.S. news outlets. The scam victimized diamond dealers in New York City, Las Vegas and Mumbai.
Back in September 2016, ALROSA announced a partnership with Indian company KGK Diamonds Private Ltd, a global leader in diamond cutting, to develop cutting and polishing facilities in Eurasian Diamond Centre in Vladivostok.
"Just last week, Yury Trutnev [Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District] held a meeting to support the Russian diamond-cutting industry, and a number of decisions were made that will help the Russian diamond-cutting industry to overcome the crisis and compete with foreign companies. The issue of developing Vladivostok on the basis of a free port was discussed at the meeting, and Vladivostok will develop as a diamond center.
Anglo American Plc’s billionaire shareholder, Anil Agarwal, said he had no intention of behaving like an activist investor following his $2.5 billion investment for a 13% stake earlier this month. He continued by staying he had no plan to buy Anglo’s assets in South Africa, or to push for a seat on the board. The investment was made through Agarwal’s holding company, Volcan Investments, rather than Vedanta Resources.
Stéphane Fischler, President of the International Diamond Council, founding member of the European Council of Diamond Manufacturers, Vice President of the World Diamond Council and President of the Antwerp World Diamond Centre talks to Manisha Gupta on India's CNBC-TV18. He shared his view of the Indian diamond industry and the road ahead for its diamond market. An abbreviated version:
CNBC: How do you see diamond consumption growth in India?
"Martin Rapaport, chairman of the Rapaport Group, called on India to show reciprocity in its trade relationship with the United States," writes eponymous Rapaport News of their founder's “State of Diamond Industry” presentation at GJEPC's "Mines to Market" conference yesterday, marking 50 years of India’s Gem & Jewellery Export Promotion Council.
India's polished diamond trade appears to making a solid recovery as it gains distance on November's demonitization shock. The country exported $2.41 billion of cut and polished diamonds in February 2017, a rise of 3.27% as compared to the $2.34 bn in the same month a year earlier, according to provisional data released by The Gem & Jewellery Export Promotion Council (GJEPC). More telling, however, is that February exports increased 49% over January 2017 ($1.6b) and were 63% higher than December 2016 (1.48b).