India’s role as a major player in the global diamond market would continue to grow, as it is committed to support the global community in curbing illegal trade in rough diamonds, proceeds of which are used to finance conflicts aimed at undermining legitimate governments. Under the aegis of the United Nations, global trade in rough diamonds is regulated through Kimberley Process Certification Scheme (KPCS), a mechanism by which the member countries certify that it is not being used to finance conflicts aimed at undermining legitimate governments. As of June 2008, the KPCS body has 48 members, representing 74 countries (with the European Community and its member states counted as an individual participant).
“Our diamond processing sector alone provides livelihood to about one million people and we are dependant upon imports of certified rough diamonds. As the leading processor of rough diamonds in the world, we have a share of about 60% of the world’s polished diamond market by value and about 82% by volume. In 2007-08, we imported rough diamonds worth about $10 billion. Today, we have zero duty on imports rough, cut, and polished diamonds. In 2007-08, India’s export of cut and polished diamonds was $14 billion,” said the Union commerce secretary, GK Pillai. In India, the Gem and Jewellery Export Promotion Council (GJEPC) has been designated as an authority for implementation of KPCS. Also, the development commissioners of the special economic zones have been delegated powers to issue Kimberly process certificates for units located in their areas.
The illegal trade in rough diamonds has reduced to less than 1% of the global production. Concerns still remain about its unrestricted flow from places like C?te d’Ivoire and Venezuela. C?te d’Ivoire is the only country, which is currently under embargo by the UN for the export of ‘conflict diamonds’ since December 2005. Venezuela was expelled from the KPCS body for not conforming to the organisation’s rules and regulations.
India, as the chair of the KPCS for the year 2008, hosted the three-day 5th Inter-sessional meeting of KPCS in Delhi, which concluded on June 19. “We discussed various aspects for strengthening the system. Issues of fake KPCS certificates, leakages in trade are the areas of concern. Review visits by KPCS teams to UAE, Central African Republic, Israel, and Liberia were undertaken. The KP working group on statistics has prepared an analysis on West Africa,” said the Union additional commerce secretary, Rahul Khullar who chaired the session.