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Preparing rough tanzanite for sale at the Tanzanite One facility in Tanzania.



  Tanzanite export restrictions placing Indian gemstone cutting industry under pressure


October 14, 2013


The decision by the Tanzanian government to restrict exports of rough tanzanites to stones under one carat is reportedly precipitating a crisis in Jaipur's gemstone cutting industry, where supplies of the material are running low.

According to the Times of India, the ban on export of tanzanite is placing dozens of companies in Jaipur in jeopardy, which recently led to India's Minister of State for Commerce and Industry, Dr D. Purandeswari, to request from her Tanzanian counterpart to lift the restriction that was imposed in December of last year.

"If the scarcity of tanzanite prevails further the global consumers may switch over to some other stones, which will be a loss to both the countries," Purandeswari said.

India reportedly processes about 95 percent of the tanzanite produced in Tanzania.

Tanzania's restriction on the type of goods that can be exported from the country is part of a government-sponsored policy to assist in the development of a local cutting industry.

On October 7 the Tanzanian government announced a set of even more stringent requirements, effectively suspending all export of all gemstones for four weeks. The reason for the ban is to bolster sales as the upcoming Arusha International Gem, Jewelry and Minerals Fair 2013, which will take place at the Mount Meru Hotel in Arusha from October 28 through October 31.

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