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India Diamond Traders Hit by Rupee Risks Amid Russia Supply Woes

  • Russian miners avoiding local currency trades for uncut gems
  • $80 billion-a-year industry was rocked by invasion of Ukraine
Traders inspect diamonds at a diamond market in Surat in Gujarat, India.

Traders inspect diamonds at a diamond market in Surat in Gujarat, India.

Photographer: Dhiraj Singh/Bloomberg
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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% 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.