Alrosa, the Russian diamond mining giant has signed a three year deal with Indian diamond manufacturers. The three year supply deal with three of India’s leading diamond manufacturers, Rosy Blue, Ratilal Becharial and Diamond India Ltd. was signed in New Delhi.
The deal signed amounted to US$ 490 million. In 2009 Alrosa sold US$ 500 million worth of diamonds to Indian diamond manufacturers.
According to the deal, the prices of rough diamonds supplied by Alrosa can be renegotiated on a quarterly basis.
Vasant Mehta, the Chairman of the GJEPC told The Economic Times “This agreement will lead to cost savings of at least 3-4% for the companies, as it is a direct deal with the miner, bypassing the other centers(eg.Belgium and Israel)”.
Alrosa, the diamond mining giant of Russia accounts for over 25% of the world diamond production.
Martin Rapaport, the Chairman of the Rapaport Group, which is the primary source of diamond information and pricing said “The direct supply of $490 million of rough diamonds from Russia to India is a major step forward in the democratisation of the global diamond industry. Consistent supply will empower India, as the primary diamond production center and encourage international completion, as it promotes the development of India’s domestic diamond demand market”