This is in response to last month's first ever visit by a top Indian delegation to Russia led by Surajit Mitra, joint secretary, Ministry of Commerce and Praveen Shankar Pandya, chairman of The Gem & Jewellery Export Promotion Council (GJEPC).

Three main reasons for the Indian diamond traders to smile: One they now have a positive international trade balance (exports are up, while imports are down); two, there's no more the looming threat now of how the global diamond trade's Big Brother De Beer's will behave, and third, the most important one--consumers in the developed markets are returning to buy diamonds and diamond jewellery.

Above all, the after effects of the split of DeBeers and Argyle in 1996 is now a thing of the past. No more price cuts and no cuts in supplies of the roughs. And Russia, another big diamond producer, is said to have agreed to restrain its supplies in the global market, thereby indirectly helping the diamond prices to remain remunerative.

Indian diamond exports for the first three quarters to June 1998 have jumped 13.50 per cent to $980.79 million from $864.16 million in the same quarter last year. On the other hand, imports of roughs was down 14.17 per cent to $893.67 million ($1,041.17 million). In 1996-97, diamond exports were down 9.16 per cent over 1995-96, while imports were up marginally 0.25 per cent.

During 1997-98, diamond exports at $4,492.66 million were up 6.08 per cent whereas the imports were down 7.50 per cent to $ 3,036.14 million.

Interestingly, it is for the first time ever that GJEPC thought of announcing the quarterly export performance of its members. "We had to have something really good to announce," quipped an office bearerof GJEPC.

"Earlier there was very little that could be shared with outsiders.""After the Las Vegas show earlier this year, the diamond industry has finally turned around," said Pandya. "Given the positive signals from across the global markets, we are hopeful of continuing the growth trend in the coming year."

Emboldened with this performance and the prospects of good business that lie ahead, Indian diamond traders will for the first time participate in the oldest, the biggest and the most prestigious Basle's diamond trade fair to be held in Switzerland from April 29 to May 6, 1999.

Over the next eight months the GJEPC and its members intend to participate is as many trade fairs, either independently or jointly with other exporters and diamond trade bodies, plus couple of diamond exhibitions in India. Other diamond trade fairs include Monte Carlo (in France), Vincenza (Italy); USA, Chicago, Boston Houston, and Middle Eastern countries.

GJEPC is also exploring similar possibilities of marketingdiamond in the Latin American countries even when Canada will soon emerge as yet another independent supplier of diamonds in the international market. During 1997-98 GJEPC participated in our international trade fairs and two in India.

"We are interested in taking the diamond industry to new highs," Pandya said. This had recently led the GJEPC to Russia. During their visit, the Indian team members are said to have been successful in convincing the members of Russia's Almazy Roffi Sakha (Russian Diamond Trading Centre kicked off last month) to restrain its diamond supply in the open market.

In order to earn maximum possible US dollars for its economy, Russia has been one of the largest exporters selling its products, including diamonds, desperately even in the open market despite its one-year contract with De Beer's.

Russia's restrained supply is likely to help diamond prices from going down. This has prompted even De Beers to increase the prices of its roughs supplied each month. Despite the increasein prices, the Indian diamond exporters are hopeful of a "good Christmas in the Western world this year."