Troubling times for Surat diamond industry
Surat, Sept 17 (UNI) A number of issues like the availability of rough diamonds, high operating costs and a devastating flood, all these affected the operation of diamond units in the diamond city Surat, resulting a dip in the export of cut and polished diamonds in the last quarter.
According to figures provided by the Gems and Jewellery Export Promotion Council(GJEPC) the net export of cut and poished diamonds have shown a drop of 12.95 percent in terms of rupees.
Export of cut and polished diamonds was worth Rs.19,033 from April to August this year. It was worth Rs.21,864.76 crores during the same period last year.
Industry specialists say the non-availability of rough diamonds has affected the industry. According to Pravin Nanavati, president of Southern Gujarat Chamber of Commerce and Industry, many countries like Australia and South Africa have already lowered the production of rough diamonds and it has affected many units in Surat.
''This has increased the price of rough diamonds since February'', says Mr Nanavati Industry sources said that there is also an increase in the price of polished diamonds after recent problems, like the flood.
According to Mr Nanavati, the recent floods forced a reduction in production, despite a high demand in the US and European markets.
According to GJEPC sources around 1,000 diamond units have almost stopped production since the recent floods. Replacing the affected machinery and equipment put a burden on the operating costs, industry sources claim.
However the industry circle is optimistic that the coming Diwali and Christmas season will bring about a complete change in the entire scenario. They claim that in this festive season the demand for polished diamonds increase and this will definitely activate the market.
UNI MS WD AG2024