Russian Alrosa in talks with India cos to sell rough diamonds

Leading Russian diamond firm Alrosa is talking to Indian companies for long-term contracts to supply the precious stone as India seeks preferential allocation of rough diamonds to companies like MMTC and Diamond India.

Alrosa, which commands about 25 per cent of the global rough diamond production estimated to be valued at around $12.4 billion, has already signed long-term contracts with seven Indian companies through their offices in Belgium.

"The company (Alrosa) is already negotiating with different Indian companies to establish long term relations," a commerce ministry official said.

During the recent Moscow visit of Commerce and Industry Minister Anand Sharma, India had asked Russia for preferential allocation of rough diamonds to companies like MMTC and Diamond India on a monthly basis.

"Long-term contracts may be signed between Indian companies and Alrosa for supplying specified quantities of roughs by Alrosa," the official said.

India, a major global processing hub for rough diamonds, has also asked Alrosa to set up its office in the country.

The official also said India has asked Russia to reduce customs duty of 20 per cent on import of cut and polished diamonds, rough gemstones, gold and silver jewellery.