Page 33 - Diamond Digest :: Jan.-Feb. 2021 Issue
P. 33

  Global News & Views.....
BDB Members Give In-principle Approval For LGD Trading
The Bharat Diamond Bourse (BDB) members during the Annual General Meeting held yesterday, have in principle approved the trading of lab-grown diamonds (LGDs) within the BDB. However, members cannot start trading in LGDs just yet. The BDB Managing Committee will now draw up a set of guidelines to be followed by members who wish to trade in LGDs.
Mehul Shah, Vice President, BDB, says, “The BDB members will have to adhere to a set of guidelines formed by the bourse’s management before they are allowed to trade in synthetic diamonds. The intention is to keep the two pipelines — natural and lab-grown — separate. The managing committee of BDB will now frame rules and guidelines on the same and decide the date from when members can start to deal in synthetics.”
Some of the norms which may be enforced are:
A separate application/registration will have to be made by members desirous of trading in synthetics
Companies dealing in both products shall ensure that the two separate entities are formed
Identify and demarcate an office premises that they shall utilise solely for the purpose of trade in synthetic / LGDs Ensure that there is a clear, distinct and robust segregation process and technique implemented in their office premises Implementation of a separate and distinct stock/inventory management system Colin Shah, Chairman, GJEPC, comments, “The decision to allow LGD trading within BDB will ensure the long-term sustainability of the Indian diamond manufacturing industry. The industry has always believed in being inclusive and there is a place for every product to exist as long as the disclosures are made. I see
no reason why natural diamonds and lab-grown diamonds cannot co-exist as both products are important for keeping the home fires burning.” Vipul Shah, Vice Chairman, GJEPC, notes, “As GJEPC, we were always supportive of the lab-grown business as long as the disclosures and ethics were maintained. When we started five years back, the lab-grown segment was less than 1% compared to our total production in terms of value and currently, it is almost 5%, registering a sharp growth. It has been accepted by US retailers as such and it is finding its own niche and market as long as it is sold as LGD in an ethical way.” “During the pandemic, LGD cutting and polishing has been a blessing in disguise as well; LGDs were a substitute for natural diamonds, especially when the industry had voluntarily banned rough imports of natural diamonds. This segment really helped to maintain the livelihood of the workforce. Even the mining companies have accepted LGDs – De Beers has its Lightbox brand. Manufacturers are bound to switch to a product like LGDs as they can earn a profit, especially when they don’t see the bottom line in natural diamonds. Overall, LGDs and natural diamonds are complementing each other,” adds Vipul Shah. Sanjay Shah, Convener, Diamond Panel, GJEPC, states, “Through the combined efforts of all the major bodies in India and across the globe, we are currently in a scenario where there is more awareness, and acceptability of LGDs as an alternative product. There is easy access to detection technology and at affordable rates. There are standardised certification services being offered by major laboratories globally. LGDs are now coming into their own and have established a clearly segregated pipeline in the diamond industry.”
NSIC & GJEPC Sign MOU To Promote MSMEs
The Gem & Jewellery Export Promotion Council (GJEPC) signed a Memorandum of Understanding (MoU) on 29th January, 2021, with the National Small Industries Corporation (NSIC) for the mutual benefit of their members.
The MoU was signed by U.K. Kohli, General Manager (BD- Machine Selling) and Colin Shah, Chairman, GJEPC in the presence of Director (Planning & Marketing)
The NSIC, a Government of India enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME), works to promote, aid and foster the growth of micro, small and medium enterprises in the country.
Speaking on the occasion Colin Shah, Chairman, GJEPC said, “With the redefined MSME classification, 85% of the gem and jewellery industry consist of MSMEs. The association with National Small Industries Corporation would be beneficial to our sector, especially the MSME units. One of the benefits to our sector is that they will be able to buy machinery for manufacturing gem and jewellery at a
discounted rate through NSIC scheme. This would further help our manufacturers to come with products of high quality and finish thus making this industry more competitive in the international market.”
The NSIC is launching yet another scheme called Fund of Fund scheme. It is an Equity investment scheme of Rs. 50k crore of which Rs. 10k crore are invested by Government and the remaining Rs. 40k crore will be procured through FDIs and other banks, which will be invested in growth oriented MSMEs. This scheme will provide collateral-free/ guarantee-free funds to grow which, in turn, will create many corporates and global champions, added Udayakumar.
The highlights of the MoU are: 1. Business Promotion Associates: 2. Enlistment of Machinery Manufacturer & Registered Indian Importer: 3. Bulk Buying of Machinery:
4. Financial Support from FIIs/Banks: 5. Digital Support: and 6. Marketing Facilitation:
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