The government will soon tighten the bolts on the diamond industry to ensure no ?blood? or ?conflict? diamonds find their way into the country. These are traded by rebel movements in some African countries to raise funds for war against legitimate governments.
The directorate of revenue intelligence (DRI) is planning stricter monitoring and checking of the trade, especially in places like Surat, the country?s diamond cutting and polishing hub. A major hurdle in the DRI?s plan was the difficulty involved in tracing the origin of diamonds imported into the country, especially after they were cut, polished and graded, a government official pointed out. The move comes soon after the DRI was tipped off such gemstones were being smuggled into Surat.
The government is particularly active since India currently holds the prestigious position of vice-chairman of the Kimberly Process (KP), a major initiative by the civil society, the global diamond industry and various governments to eliminate the trade in blood diamonds. India is likely to become its chairman in 2008.
Diamond consignments with KP seal certify, that they do not contain conflict diamonds. When contacted, Gems and Jewellery Exports Promotion Council chairman Sanjay Kothari said, ?If there is any illegal trade going on in the industry, the DRI should bring it to our notice also. However, bringing in blood diamonds through the official channels is virtually impossible as the KP certification is a must.?
India imported $8.5 billion worth rough diamonds in 2006-07. Of the $17 billion worth gems and jewellery exports in 2006-07, cut and polished diamonds constituted $11 billion.