India Hoping for Long-term Deal with ALROSA

The Economic Times reported that in order to ensure a steady supply of diamonds, India is looking into a deal with Russia’s ALROSA (MCX:ALNU). Specifically, the company is hoping for state-run MMTC Ltd. to arrange a long-term agreement with the company.

As quoted in the market news:

Indian companies already procure rough diamonds from Alrosa through spot or medium-term contracts. In 2010, Alrosa had entered into medium-term contracts with three private companies. According to Indian estimates, India-Russia trade is pegged at around $6 billion in 2013 while Russian numbers add up to nearly $10 billion, but in both sets of numbers the balance of trade is with Russia.

The two countries want to scale up trade to $20 billion by 2015 and have identified infrastructure development, fertilisers, pharmaceuticals & chemicals, aviation, agricultural and food items, and automobile industry as areas to push trade.

Click here to read the full report from The Economic Times.