Floods may cost diamond trade Rs10,000 crore

MUMBAI: The unprecedented flood in Surat over the past three days has taken a heavy toll on the diamond trade. The combined Mumbai-Surat loss would be in the region of Rs10,000 crore, said Navin Mehta, president of the Mumbai Diamond Merchants’ Association. According to Mehta, the flood came at a critical time for the industry.

“This is the time when diamonds are produced for the Christmas season,” he said. “Due to the floods we will not be able to deliver according to the contracts. Losses will run into crores, especially when production stops after Diwali.”

Although the diamond industry’s trading offices are in Mumbai, cutting and polishing takes place in Surat. Meena Dharod, officiating executive director, Gem and Jewellery Export Promotion Council, said, “Most manufacturing units are situated on Varachha Road in Surat, which is submerged. Machinery has been affected, directly affecting trading.”

Meanwhile, the situation in Surat improved on Thursday but continued to remain critical. The water level in several areas fell by several feet, but more than half the city continued to be under water. At least 100 corpses were recovered from different parts.