Bharat Diamond Bourse may allow lab-grown diamond trade
Bharat Diamond Bourse, the world’s largest trading centre of the precious stone, is considering allowing lab-grown diamond trade on its premises within three months.
Since its existence after shifting of diamond trade from Opera House in south Mumbai in 2010, Bharat Diamond Bourse has restricted import, export, sale and purchase of any type of lab-grown diamond within its premises.
In fact, the imported labgrown diamond can be cleared by the customs within the bourse only for delivery outside the premises.
But looking at the increasing demand from its members and the trade fraternity, a committee by the name of Natural Diamond Monitoring Committee (NDMC) was formed to frame trading guidelines for lab-grown diamond.
The committee is set to submit its report shortly. As of now, market share of lab-grown diamonds is estimated at 2-3 per cent and some companies, including De Beers, are planning to increase its production.
“All leading bourses across the world are offering trade in specific commodities. As of now, lab-grown diamond is imported for delivery only outside the premises of the bourse. Now, NDMC is framing guidelines which will be reviewed by the bourse’s board to allow labgrown diamond trade in the bourse. We hope the process will be completed in three
months,” said Anoop Mehta, president of the bourse, on the sidelines of the Bharat Diamond Week, a three-day exhibition-cum-sale of polished diamond currently under way at the bourse.
Spread across two million square feet, the bourse houses nearly 2,500 small and large diamond traders in addition to the customs house, banks and other service providers concerning the gems and jewellery trade.
The bourse commenced trade in 2010 with major diamond traders from Opera House in south Mumbai shifting their offices to the suburbs.
Launched in India about two-three years ago, lab-grown diamond has seen its demand increasing from customers due to the price being 90 per cent lower than natural diamond.
Most customers are also buying lab-grown diamond due to over 90 per cent buyback offer given by jewellers.
“Trading of natural and labgrown diamond under one roof always associates a fear of cheating. In order to avoid any such practice, we have not allowed trade of lab-grown diamonds till today. But the guidelines currently being framed would put the onus of malpractices in diamond trade on the owner of the diamond.
On allowing trade, the labgrown diamond would be fully traceable. The power to penalise wrongdoers will be thrust on the bourse,” said Mehul Shah, managing director, Star Brillian and vice-president of Bharat Diamond Bourse. The bourse will have to ensure that labgrown and natural diamonds are not mixed and a proper filtering process with firewalls between the two types of diamond trading are well established.