Diamantaires hope Surat becomes roughs trading hub

SURAT: Will India's first successful online rough diamond auction open up doors for global diamond miners to directly sell their goods through auctions in Surat? If the diamantaires in the world's biggest diamond cutting and polishing centre in Surat are to be believed then this could be a reality in the near future.
The Rs 80,000 crore worth of diamond industry in Surat is the biggest consumer of rough diamonds mined in different parts of the world such as South Africa, Canada, Botswana, Namibia and Australia.
As per the statistics released by the Gems and Jewellery Export Promotion Council (GJEPC), the country imported about $11 billion worth of rough diamonds in 2010-11 - Surat imported about 90 per cent of the goods. The country's polished diamond export stood at $28 billion in 2010-11, registering a 54.91 per cent growth compared to the export of $18 billion in 2009-10.
Industry sources said that Surat is processing about 70 per cent of the rough diamonds mined in different parts of the world. The annual production of rough diamonds in the world is between $14 billion and $15 billion.
"Only 10 per cent of the diamonds mined across the world reach Surat directly through different channels, while the rest are traded through Antwerp and Dubai," said Ashit Mehta, chairman of Blue Star group, which successfully sold Rs 60 crore worth of diamonds in the online auction on Friday.
According to Mehta, the online auction organised for the first time in the country should be an eye-opener for the diamond miners including BHP Billiton, De Beers, Rio Tinto, Alrosa to sell their goods through tender system or online auction in Surat.
Industry analysts said the giant diamond mining companies like BHP Billiton and De Beers organise online auction of rough diamonds every year at Canada and London, respectively. Most of the online bidders are Indian diamantaires and traders from Surat, Antwerp, Mumbai and Israel.
"The success of India's first online rough diamond auction should be an eye-opener for the giant diamond mining companies. They (giant mining companies) can organise similar diamond auctions in Surat or Mumbai to get maximum participation from even the small and medium diamantaires, who cannot participate in the auctions at London and Canada," said Aniruddha Lidbide, a diamond industry analyst.
Aagam Sanghavi, director of Sanghavi Exports, said, "Surat has established its position as the rough diamond trading hub. The giant diamond mining companies should evaluate the success of India's first online rough diamond auction and set up their shops in the city to directly sell their goods to the big, small and medium diamantaires."
Dinesh Navadia, president of Surat Diamond Association (SDA), said, "We (India) are the ultimate users of rough diamonds mined across the world. Until now, the diamantaires were visiting the mining countries to purchase rough. But after the success of the online diamond auction, we would like the diamond mining companies to come to Surat and sell their goods through auctions or tender system."
Savji Dholakia, chairman of Shree Harekrishna Exports, DTC sightholder company, said, "This was a first step by the Blue Star group to provide a rough diamond trading platform in Surat. We are confident that the giant diamond mining countries will set up their shops in Surat to sell their stocks in the near future."