For one, the gems and jewellery exports during April to November last year grew by 10.4 per cent over the same period in the previous year. Thereafter, the industry witnessed further spurt in business during December and January, primarily from the still boomingUS market.

"Business prospects are better-than-before," says Gem and Jewellery Export Promotion Council chairman Praveenshankar Pandya. "Premiums of around two to three per cent are therefore, being quoted for diamond roughs to meet future demands", he said. And it is over a year's time that the diamond processors are prepared to pay premiums for the roughs.

Following "good exports" of jewellery to the still-booming US market in the last quarter of 1998, and payments received thereafter, the industry players are once again upbeat of a good business season ahead.

The upbeat mood was widely and largely visible among of all those attending last Wednesday's meeting arranged by Argyle Diamond to celebrate its decade of presence in the Indian market.

Last week also saw the visit by De Beer's chairman Nicky Oppenheimer. Both Argyle and De Beer's were partners till June 1996, now competitors in the slowly stabilizing diamonds market.

Competition, yes, but this would neither result in price cuts nor excessof supplies of roughs, is what the representatives of both De Beer's and Argyle made it clear to their respective clients. This therefore, is a sharp turnaround sort of for De Beer's, which had in 1997, flooded the market with excess of roughs almost choking the diamond processors here.

De Beer's earlier strategy was to punish the breakaway partner Argyle Diamonds. But having realised that Argyle is doing fine despite choking rough supplies, and even intends to pump over A$200 million in mine life expansion, De Beer's has changed its marketing strategy.

Over the past two years since the breakaway from Argyle Diamonds, De Beer's has held back over 70 per cent of its annual supplies. To top this, Oppenheimer is reported to have said: De Beer's will continue to keep supply under check till the market is capable of absorbing more uantity. It would be in the interest of India's diamond industry if other producers exercised similar restraints".

It may be recalled that De Beer's had in December last, had forthe first time openly sought cooperation from other diamond suppliers `to protect the diamond industry from increasing problems of over-production.'

Last week, Argyle Diamond's managing director Gordon Gilchrist too sounded a similar note of responsible caution in supplies. "Argyle's goal in a strategic sense is to maximise the value of our shareholders, customers and employees", he said.

Despite these words of comfort, a sizeable section of diamond jewellery exporters, are still not sure of the future marketing strategy of Argyle Diamonds.

Said a chairman of one of the leading jewellery exporting company: "We are not clear of Argyle's marketing strategy. It's time that Argyle Diamonds gave clear marketing signals and also changed its strategy to support the actual processors and jewellery manufacturers than continuing to support their chosen few dealers."

Like, De Beer's earlier, Argyle too has agreed to extend a helping hand to the domestic diamond processing and exporting community. According toPandya, Argyle has promised to help the industry here to promote more diamond jewellery through sponsoring international jewellery shows and giving half yearly supply figures, which are currently not divulged by the company.

It remains to be seen how these words of commitment and solidarity will be implemented. The first of such instance will be partially clear at today's (Monday February 15's) site offering by Argyle Diamonds.

Domestic jewellery exports up 10% in 1998

India's exports of gems and jewellery had shown a robust growth rate of 10.4 per cent at $3,809 million during April-November 1998 as against $3,450 million during the same period in 1997.

In rupee terms, the growth was 28.22 per cent at Rs 15,866 crore compared to previous year's exports. This is the only sector in the country's export basket which has managed to maintain a steady growth rate despite demand recession world across. The year is, therefore, likely to end with growth rate of around 10-12 per cent.

The over 10 percent export growth in value terms of gems and jewellery was due to the increasing exports of cut and polished diamonds which was worth $3,123 million during the eight months to November ($2996.21 million).

Exports in November had increased by nearly 34 per cent in dollar terms at $392.51 million as against $291.13 million recorded during the same period in the previous year.

In rupee terms the exports during November was Rs 1,654.35 crore,an increase of 54 per cent over last year's Rs 1,074 crore.

There was also a quantum jump in the export of rough diamonds from just $2.88 million in November 1997 to $9.09 million in November 1998. In rupee terms exports of gems and jewellery in the month of November was up a stunning 54 per cent at Rs 1,654.35 crore as against Rs 1,074.02 crore during November 1997.