Can Surat grab diamond market pie of Mumbai?

Part of diamond trade from Mumbai may be shifted to Surat once Surat Diamond Bourse becomes operational by the current fiscal end. As of now, Mumbai is responsible for diamond exports valued at $15 billion. Mumbai is known as trading hub, whereas Surat continues to be a diamond manufacturing hub.

"Surat will transform from a diamond manufacturing hub into a trading hub competing challenging Mumbai Enquiries with the Bharat Diamond Bourse office bearers," alleged a Facebook post by a person named Sumeet Gupta.

However, it is true that a much bigger Surat Diamond Bourse (SDB) was under construction and on its completion a major chunk of diamond traders may shift their base from Mumbai to Surat, said a diamond exporter in Mumbai, requesting anonymity. Enquiries with the office bearers of BDB revealed that they had not heard of such a development. "No one knows who this person is," said Mehul Shah, vice -president, Bharat Diamond Bourse, adding, 'whoever it is, it is an irresponsible post.'

The Surat Diamond Bourse will be functional from end of this year. There are as many as 5,000 diamond traders scattered around Surat and they will be brought under the SDB just like Mumbai was a decade ago. There were diamond traders in Opera House and Zaveri Bazar. With the BDB now at BKC, the diamond traders are in one area, said a diamond broker.

Shah said that many diamond traders in Mumbai have offices in Surat like they do in Belgium, Dubai, New York, Japan and in other countries. "And many of us like me will have just one office in Mumbai. So, no one is forcing people like me to go to Surat or vice versa," he said, scoffing at the Facebook post. In fact, the exporters are asking for extra FSI at BDB due to shortage of space for the growing community of traders there.

Around 90 per cent of diamond trade business focussed on exports primarily is concentrated in Mumbai. The main country where diamonds have a huge demand is the US, followed by China. The pandemic took a hit on exports, but now the trade is picking up with the US economic slowly opening up, said Shah.

He informed that one more such bourse was coming up at Jaipur. "More and more bourses should be constructed across the major centres of the country including Hyderabad," he opined.

"Business is doing well this year," said Anoop Mehta, president, BDB. He said exports could go up by 10 per cent. He expects business to pick up by Diwali, if the Covid cases come down considerably by then.

"Diamond business moves to Surat. I want to know how it can be done," he quipped. "I can't even hazard a guess on how it can be done."

Anoop Mehta, president of Bharat Diamond Bourse, agreed to the fact that part of diamond trade may be shifted to Surat once SDB becomes operational. However, he said that it will not have any major impact on the functioning of BDB, located in BKC area of Mumbai.

He told Bizz Buzz, "you need to understand that the diamond is business is scattered in Surat which will get consolidated. I mean the diamond trade, which was currently unorganised in Surat, will get organised and lots of traders may shift to Surat from Mumbai."

Surat Diamond Bourse (SDB) has been developed at a cost nearly Rs 2,400 crore. The Bourse will have 11 iconic towers of 11-storey height each, housing more than 4,500 diamond offices.

According to Colin Shah, chairman, Gem & Jewellery Export Promotion Council (GJEPC), "SDB will help consolidation of diamond manufacturing industry in the city to organised one. Yes, some of the business may be diverted to Surat from Mumbai, still it will not have any significant impact on the diamond export happening from Mumbai."