The hopes are high as the diamond cutting units and trading markets in Surat, which were closed for Diwali vacation, reopen today. The diamond industry, which bore the brunt of economic recession in the past year or so, is hoping for good sales in the coming Christmas.
The diamond units and trading bazaars, which were shut from October 15, are all set to reopen today after a short vacation of just two weeks as against the traditional four or five weeks.
"A few units have already reopened from the last couple of days, but majority of the estimated 3,000 diamond cutting and polishing units in the city will start operations. The signs are good and we have high hopes for diamond sales this year," Rohit Mehta, president of Surat Diamond Association, (SDA) said.
"We are definitely confident that a good season awaits the diamond industry. The hurry to reopen the units by having a shorter vacation is the biggest sign of this confidence," Chandrakant Sanghavi, regional chairman, The Gem & Jewellery Export Promotion Council, said.
According to industry estimates, the number of workers in diamond industry prior to the vacation was around three lakh, majority of who are likely to return to work from tomorrow. The glitter of diamond industry is also expected to attract the thousands of diamond workers who had lost their jobs during recession forcing them to shift to other sectors.
The Mahidharpura Hira Bazaar and Varachha Mini Bazaar, the two main diamond trading markets will also resume operations today. While things are looking up, diamond manufacturers feel that the spurt in rough diamond prices could play a dampener.
"Rough diamond prices have increased by more than 15 - 20% in the past six months due to improved demand, even as polished diamond prices have remained more or less the same. Rough prices are projected to go further up in the next week or so, which is not good news for the polishing industry," a diamond manufacturer said, requesting anonymity.
Even as the diamond units reopen, diamond industry sources said that mining company BHP Billiton has increased rough prices by 5 - 10 %. DTC, a part of De Beers, is also widely expected to hike rough prices in its ninth sight, which co-incidentally starts from tomorrow.
“The pricing of rough will set the tone for the industry in the coming weeks. Any increase in rough prices, especially with polished prices not showing any rise, will be a big dampener ahead of the Christmas season," Mehta said.
Comments