Concerned over the weakening rupee against the dollar and increasing prices of rough diamond, diamantaires in the world’s biggest diamond cutting and polishing centre in Surat have once again set their eyes on the diamonds produced in the controversial Marange diamond mine in Zimbabwe.

According to reports, diamond mining companies in Marange have been selling their rough diamonds at 25 per cent less than the normal price due to sanctions imposed on the country by the US for alleged human rights abuse in the diamond mine and to lure Indian diamantaires.

Industry sources said Zimbabwe’s Parliamentary Portfolio Committee (PPC) on Mines and Energy has submitted a report stating that the diamond mining companies operating in Marange are selling their rough diamonds at 25 per cent less than normal prices in the world market. The report said the rough diamonds are being sold through unconventional means because major international banks, insurance companies and couriers do not want to be associated with Marange diamonds subsequent to US sanctions.

A senior office-bearer of Gems and Jewellery Export Promotion Council (GJEPC) said, “Zimbabwe’s cheap diamonds are attracting Indian diamantaires, especially small and medium buyers. They bring the diamonds to India paying cash in order to keep their factories running.”

Rakesh Patel, a diamond dealer in Mahidharpura diamond market, said, “The industry is not in a position to buy rough diamonds sold by mining companies like DTC and Alrosa as the value of rupee has depreciated against the dollar. Zimbabwe diamonds have become the cheapest option now.”

GJEPC leaders said companies operating in Marange in Zimbabwe are KP compliant and thus the diamantaires face no technical difficulties in bringing the diamonds to India.

Zimbabwe expects the diamond production at its Marange diamond mine to cross 16.9 million carats this year. The country has grown its diamond production by almost 1,000 per cent in three years.

Dinesh Navadia, president, Surat Diamond Association (SDA), told TOI, “Diamantaires will go wherever they get cheap diamonds. If Zimbabwe is offering diamonds cheaper by 25 per cent, we do not have anything to lose.”