Indian Diamonds Affected by New US Sanctions Deal Fluttering in the cutting and grinding industry

  • Friday, 24 June 2022
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India's "Economic Times" announced that due to the new US sanctions policy, India's cutting and grinding industry may be turbulent.

According to the report, the United States has recently upgraded its sanctions against Alrosa again, which will lead to two consequences:

1. Joint ventures that could previously "play the edge" will not be able to trade with Alrosa;

2. the U.S. market has been significantly more vigilant, in the purchase of finished drilling has become more careful.

Affected by this, the diamond processing industry in Gujarat, India, has to "reduce the working hours from 12 hours to 8 hours a day and take two days off per week" to reduce the salary burden of 80-1 million workers.

India currently purchases only 10% of the latter's output directly from Alrosa, but Alrosa's other large quantities of diamonds reach India through third-party re-export trade. With the escalation of U.S. sanctions, this type of trade is likely to be more difficult.

On the other hand, "the United States, as India's most important export market, is now extremely cautious in purchasing finished diamonds, which will also lead to a slowdown in the production pace of India's cutting and grinding industry".

While GJEPC is actively seeking solutions, it is difficult to predict future trends. (Source: Diamond Watch)

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