DTC sightholder list pruning sparks criticism

by eyetee | January 21, 2008 12:00 am

[1]India’s Gem and Jewellery Export Promotion Council (GJEPC) says a move by De Beers Diamond Trading Company (DTC) to remove eight Indian firms from its sightholder list for 2008 to 2011 “defies analysis.”

Last month, DTC confirmed 71 companies with sightholder status with third-party verification for each pending until March.

Six new companies were added to the list, including three from India. However, eight other Indian sightholders were removed, along with three Indian-owned firms in Belgium. This brings the number of sightholders to 75 for the next three-year period, down from the previous number of 94.

DTC says the move is in response to a worldwide shortage of rough diamonds. However, GJEPC says the group has “confounded its own reasoning by adding six new clients and drastically increasing the allocations of rough diamonds to several existing firms.”

“The concern is on the impact of DTC’s business decision on the industry as a whole,” said GJEPC chair Sanjay A. Kothari. “This move by DTC will consolidate the business in a few hands only, as small and medium enterprises dependent for rough diamond supplies through intra-trade dealings with sightholders will discontinue. This will lead to massive unemployment in the sector and affect medium manufacturers.”

Kothari says major investment losses will be incurred by companies previously on the list who are no longer assured of rough supply.

According to GJEPC, the impact of a pruned list could have been lessened if the DTC had increased allocation to the Hindustan Diamond Company (HDC), a joint venture between the Indian government and De Beers known as De Beers’ Diamdel. This system feeds the open market beyond its closed client list.

Although some companies may still be cut from the list, DTC says none will be added. The GJEPC is calling on DTC to reconsider its decision-making process.

Canadian company Arslanian Cutting Works NWT is one of the new sightholders.

Source URL: https://www.jewellerybusiness.com/news/dtc-sightholder-list-pruning-sparks-criticism/

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