A sharp drop in diamond prices does not benefit either the mining company or the cutters

Representatives of the diamond business of India are preparing proposals to expand direct purchases of diamonds from the Russian company ALROSA.

Russian-Indian cooperation in the diamond sector received a significant boost after the meeting between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin in December last year. Then ALROSA signed 12 direct contracts for the supply of diamonds to Indian companies. The next meeting between the president and the prime minister can be held in Astrakhan this fall, and the Russian side is expected to present new concrete proposals to expand the diamond trade between the two countries.
A new impetus to the cooperation of India and Russia is attached to the current crisis in the diamond market. In the opinion of industry participants, The prolonged fall in diamond prices is largely the result of speculative operations. Direct supplies of rough diamonds to lapidary and jewelry companies in India could be a good defense against market fluctuations. Here, Russia and India have a common interest: a sharp drop in diamond prices does not benefit either the mining company or the cutters who are engaged in production, rather than the resale of raw materials. Stable prices guarantee stable work and a stable social environment.

Preparing for the future summit, Indian industry representatives are seriously discussing the possibility of introducing a formula for a fair price for rough diamonds, to which ALROSA and Indian lapidary companies would be tied, as well as providing state guarantees for the purchase of Russian diamonds for the largest lapidary firms.

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