DIL may import Rs 700 cr rough diamonds in FY11

Diamond India (DIL) today said that it may import rough diamonds worth around Rs 700-crore during this financial year.

"The first six months registered a good quantum growth beyond 30-40 per cent. We had set a target to import Rs 700 crore worth rough diamonds during this fiscal and I am sure we will achieve it," DIL Chairman Praveen Shankar Pandya told reporters on the sidelines of a conference here.

In 2009-10, DIL, a consortium of 58 traders, had imported rough diamonds worth Rs 550 crore.

He said, the US and the Middle East markets have recovered, while the European and Japanese markets are still sluggish and yet to recover.

Looking forward, he said based on the demand and supply scenario, price of diamond has already peaked and is not likely to surge in next one year. However, he said, depending on the global scenario slight volatility in the market will remain.

He further said DIL is planning to import 3-5 tonne of gold during FY11. This is the first direct gold imports by DIL, which was set up to import rough diamonds, he said.

However, it decided to import gold after the Reserve Bank of India authorised it to ship gold in 2009.

"We are planning to import 10-15 tonnes gold in the next financial year," he said. The company is also scouting for diamond mines, especially in Africa.