Surat: The growing might of lab-grown diamonds (LGDs) is now clearly visible as the natural diamond trade undergoes a major shift. Global diamond major De Beers is likely to cut around 25% of its sightholders, with the majority of those affected being based in Surat. While the exact number of sightholders to be dropped has not been confirmed, De Beers has said it is aiming to “work with a more focused group of clients”.Industry insiders say falling demand and declining value of natural diamonds are affecting production, with the growing popularity of affordable LGDs emerging as the primary reason. Polished LGD exports rose sharply from about 4 million carats in 2020-21 to over 15 million carats in 2024-25. In contrast, cut and polished natural diamond exports fell to 16.64 million carats in 2024-25 from about 22 million carats in 2020-21. Meanwhile, De Beers has said India is emerging as the world’s second-largest diamond market, replacing China. The new list of sightholders is expected to be published in July. Industry sources said the number could come down to 41 from the present 61, though one new sightholder has reportedly been added from Surat. Sightholders are a select group of leading diamantaires, manufacturers and retailers authorized to purchase rough diamonds directly from De Beers. They are chosen based on financial stability, ethical sourcing practices and capacity to process large volumes. De Beers supplies about a third of the global rough diamond market, with Alrosa being another major supplier. Replying to queries, Paul Rowley, executive vice-president for diamond trading of De Beers Group, said, “Details of the new sightholder list will only be published at the start of the new supply agreement period in July of this year.” Rowley said, “The diamond industry has evolved significantly during the current contract period. Working with our govt partners in Botswana, Canada, Namibia and South Africa, we are shaping future sightholder supply agreements to deliver greater strategic value through closer collaboration. Lower anticipated availability for the sightholder supply model means we will work with a more focused group of clients, enabling deeper, more strategic partnerships.” He added, “In the new supply agreement period, we will work with a more focused group of clients, enabling deeper, more strategic partnerships. We began exploring new collaborative relationships as part of our rough diamond distribution approach last year. We believe such collaborations have the potential to unlock more strategic opportunity and value for De Beers Group and the diamond industry across diversified distribution channels.” “It is possible that some sightholders have surrendered their contracts considering the current market conditions. The major reason is LGD popularity, which is securing a major share of the natural diamond market,” said Dinesh Navadiya, chairman, Indian Diamond Institute (IDI). “LGD production and exports are likely to grow further as new technology continues to improve the product. Research is also ongoing into the use of LGD in other products.” Many diamond cutting and polishing artisans have already shifted to LGD manufacturing from the natural diamond segment, where wages were earlier higher. However, industry sources say the shift was unavoidable to survive current market conditions. LGD jewellery manufacturing is also gaining rapid acceptance, further fuelling growth in LGD production.
