Surat Diamond Cutting and Polishing Center in Gujarat is the largest diamond processing center in the world. It sources rough diamonds from Russia and South Africa. The United States is a major buyer of processed diamonds in India, accounting for nearly 50% of the country’s diamond and diamond jewelry exports.
US retailers have also asked Indian diamond processors for a statement that they will not use rough stones from Russia.
Their demand could hurt India’s exports of gems and jewelry and complicate matters for the country’s diamond industry which was already feeling the heat from sanctions imposed on Russia for its invasion of Ukraine.
“A number of units have received letters from US buyers. They are worried about this,” Dinesh Navadiya, regional chairman of the Gem & Jewelery Export Promotion Council (GJEPC), Gujarat, told ET.
Some major jewelry brands, including
and Tiffany and Co, have banned the use of Russian diamonds in their products. “Other retailers are following suit,” said a diamond exporter.
“We hope the situation will improve within 2-3 months,” said Colin Shah, chairman of GJEPC.