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Indian diamond traders hit by rupee risks amid Russian supply woes

"The Russians are not comfortable with the rupee invoicing as far as the gems and jewelry sector is concerned," said Gem & Jewellery Export Promotion Council

diamond, diamond traders
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Photo: Bloomberg

Swansy Afonso | Bloomberg
Efforts by Indian diamond traders to secure more uncut product from Russia and allay an export slump in the world’s biggest polishing hub are being hampered by currency risks.

Supplies from Russia to India have fallen 40 per cent since April, leading to a knock-on slump in exports from the Asian nation. Furthermore, not a single jeweler has utilized a special facility set up in July to allow the trade to be handled in rupees, according to the Gem & Jewellery Export Promotion Council.

“Nobody is willing to take the exchange risk and volatility,” the council’s chairman, Vipul

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First Published: Jan 18 2023 | 7:50 AM IST

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