Cheap Zimbabwe diamonds that made their way into Surat last November after the Kimberley Process (KP) allowed their exports from the controversial Marange fields are pushing prices - especially in the low range category - downwards.
The Times of India reports that prices of rough diamonds by De Beers and Alrosa registered a decline of between 6 percent and 10 percent last month.
It also said that the low range diamond boxes of these giant diamond mining companies were selling at discounted rates of up to 25 percent in Surat and Mumbai.
"The giant mining companies seem to be under price and sale pressure since November 2011, when the Zimbabwe goods started to enter India,” Aniruddha Lidbide, a diamond analyst was quoted as saying.
“India is the biggest consumer of low-range goods and thus the prices are likely to decrease further in 2012."
Industry leaders say Zimbabwe diamonds were about 50 percent cheaper than those from other sources.
The Times of India also claimed that about 30 percent of the diamond pieces currently manufactured in Surat were Zimbabwe stones.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
