Rough diamond supply channels were blocked due to flight disruption.
The resumption of flights to London and other destinations in Europe after a week-long disruption owing to volcano eruption in Iceland has come as a big relief for the diamond industry.
The diamond cutting and polishing industry, mostly concentrated in the state in Surat, Ahmedabad and some pockets of Saurashtra, depends heavily on rough diamond imports from Antwerp and also London.
Flights to both places were disrupted since April 15 following formation of cloud of volcanic ash over most parts of Europe. "There wasn't any noticeable impact on the diamond industry because of disruption of flights, as polishing units have adequate stocks to meet rough diamond requirements of a few weeks," said Rohit Mehta, president of Surat Diamond Association.
Mehta, however, said that with supply channels blocked, there could have been rough shortage had the disruption continued for some more time. Due to cancellation of flights between April 15 and 20, the country's rough diamond imports from Antwerp and London took a hit. Exports of polished diamonds and jewellery to Europe, and to US were also hit to a certain extent.
Diamond industry experts are particularly relieved that flights to London have resumed ahead of Diamond Trading Company's upcoming sight between April 26 and 30.
The DTC is headquartered in London and it is where sight-holders go to purchase rough diamonds from it. "Indian diamantaires would not have been able to travel to London for the sight.
Moreover, even shipment of goods could have been disrupted if the crisis had continued," Chandrakant Sanghavi, regional chairman of The Gem & Jewellery Export Promotion Council, said.
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