The seizure of blood diamonds worth Rs 10.17 crore in Surat is just the tip of the iceberg, say sources in the diamond industry, according to Melvyn Thomas writing on http://timesofindia.indiatimes.com. Sale of these diamonds mined in war zones in Africa and sold to finance an insurgency is banned. But the widening demand-supply gap in the international market in the last two years has lured many in South Gujarat - mainly in Surat and Navsari - to smuggle illicit diamonds from Zimbabwe, Angola and other African countries.
A diamond dealer in Mahidharpura here estimates that around 15-20 per cent of rough stones in circulation come through illegal channels.
The diamond smugglers of south Gujarat purchase the rough stones from illegal diggers, mainly in Zimbabwe and Angola, at prices ranging from $6 per carat to $150 per carat. Market sources said that about 25 per cent of the illegal goods arrive from Angola, while the rest come from Zimbabwe.
The smugglers, who are paid hefty percentages ranging from 2 to 4 per cent, are funded by diamond dealers in Surat and Navsari. Market sources said that about 25 per cent of the illegal goods arrive from Angola, while the rest come from Zimbabwe. The smuggled diamonds are sold in the open market at the profit margin of 20-25 per cent.
"The profit margins of those who are selling legal goods with Kimberley Process (KP) certificates shrink as the manufacturers get stock on much lower prices," said the diamond dealer in Mahidharpura requesting anonymity. The Kimberley Process Certification Scheme (KPCS) is the international diamond regulatory body that certifies that the diamonds mined are conflict free and carries no human rights abuses.
The phenomenal demand of rough diamonds can be gauged from the latest import figures for 2010-'11 released by the Gems and Jewellery Export Promotion Council (GJEPC). As per GJEPC's statistics, the import of rough diamonds in India registered 31 per cent growth at $11.9 billion in 2010-11 compared to $9 billion in 2009-10.
This is the second case of diamond smuggling reported in the city in the last three years. On September 20, 2008, the two Lebanese nationals, Yusuf Oselli and Robar Hussain, were arrested from a Surat hotel with rough diamonds weighing 3,600 carats, valued at almost $800,000. The duo had revealed the diamonds were brought from Zimbabwe, and that they had made several earlier runs. The men, who did not have a Kimberley Process Certificate or any other documentation for the diamonds, told the DRI that they had carried the diamonds through Dubai, landing undetected at Mumbai on September 15, 2008.
A senior office-bearer of Gems and Jewellery Export Promotion Council (GJEPC) on condition of anonymity said, "We have asked the revenue intelligence department and the customs department to take stringent action against the diamond smugglers. We strongly advocate of doing legitimate trade, but for few unscrupulous elements the entire trade is earning bad name internationally."
