Thanks to reduced global offtake, diamond suppliers, including jewellery makers, are all waiting for the rush of buyers for Christmas and new year. Around 40 per cent of the diamond industry's sales take place during the 5-week Christmas shopping. Unlike in the past, that is till last year, the diamond industry bigwigs are keeping their fingers crossed as sales are unlikely to be as buoyant this year as in the past.

De Beers' 5-member team, led by managing director Gary Ralfe, was in India last week to assess and evaluate the demand for diamonds from Indian and other principal diamond processing countries like Israel, the Far East, China and Belgium. As part of its annual end-of-the-year visit, the team met some of the leading exporters from the gem and jewelleryindustry.

In a press communique issued jointly by The Gem & Jewellery Export Promotion Council (GJEPC) and Diamond Trading Company (DTC), Ralfe `reiterated his organisation's commitment to the diamond industry in the strongest possible terms.

"Our resources are committed to procuring stability for the diamond business," Ralfe said, adding, "On our part we have cut sales by a significant amount and we hope that other producers will also respond in a positive manner to reduce the problems of over-production, and in doing so protect the diamond industry."

Praveen Shankar Pandya, chairman, GJEPC, acknowledged the positive role played by DTC, which had curbed its supply of rough diamonds by about 40 per cent. "Despite these cuts, the industry is still not out of the woods," the note added.

This, therefore, also indicates that unlike in the past, the relations between the principal diamond supplier and processors is beginning to get strained. Both the Indian jewellery makers and De Beers were comfortablewith each other's activities. Not any more, as both feel that the other is equally responsible for giving stability to the industry, thereby asking the other to do more than what it currently, or till recently, did, for giving support.

The going was good for both the diamond producers, suppliers and the processors (jewellery makers). Till recently, that is. The problem started primarily after mid-1996 when Argyle, one of the leading diamond suppliers from Australia, broke the decades-old diamond marketing arrangement with De Beers and began supplying diamonds on its own.

Soon thereafter, it was Russia which, wanting every greenback to support its teetering economy, has been flooding the markets with its own diamonds despite the agreement with De Beers. And the global consumers' market, entangled as it is in ever-growing financial crisis, is not lifting enough diamonds.

Without naming the diamond producers and suppliers, De Beers has hinted that they too respond `in a positive manner' by cutting downtheir supplies and in doing so protect the diamond industry from the increasing problems of over supplies. It remains to be seen how and to what extent do the diamond producers and suppliers respond to De Beers' call.