Production of polished diamonds in Surat declines by 25% in April
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Synopsis
Production has taken a hit at a time when the trade is witnessing strong demand from the US and Chinese markets, diamantaires said.
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Production of polished diamonds in Surat has declined by 25% in April compared with March due to rising Covid-19 infection among workers and exodus of migrant workers from the city in fear of the pandemic, industry insiders said.
Production has taken a hit at a time when the trade is witnessing strong demand from the US and Chinese markets, diamantaires said.
They are cutting down the import of rough diamonds as production has dwindled, which is likely to soften the prices of rough diamonds. India cuts and polishes 14 out of 15 diamonds in the world.
India may soon become a major hub of lab-grown diamonds
Synopsis
Industry executives said natural diamond players in the country are entering this segment because of growing demand for lab-grown diamonds across the world given their relatively cheaper prices.
India may soon become a major hub of lab-grown diamonds as the units in Surat have started production, which will reduce India’s dependence on China and Russia for imports of this category of diamonds. Rough diamonds will be manufactured, cut and polished in Surat and then exported to overseas markets.
“India will become a major hub of lab-grown diamonds by 2030. Already, production of rough lab-grown diamonds has begun in Surat,” said Colin
Why Mumbai diamond traders are shifting base to Surat
At present, about 90 percent of the diamonds cut and polished in Surat are traded in Mumbai and exported to world markets.
Synopsis
The trend gathered momentum from January when 65% -70% of diamond imports in value terms took place in Surat. In January, India imported rough diamonds worth Rs 9215.61 crore, a 69.38 percent jump from Jan 2020.
Many diamond traders from Mumbai have shifted to Surat as the diamond exporters are trying to bring down costs and integrate the polished diamond business. Besides, the lockdown brought trading activities in Mumbai to a standstill, though export and import did happen from Surat, prompting the trade to relocate a portion of their businesses there.