Cold War Erupts Between Bharat Diamond Bourse and Surat Diamond Bourse

Surat : A cold war has commenced between the renowned Bharat Diamond Bourse (BDB) in Mumbai and its younger counterpart, the Surat Diamond Bourse (SDB). Tensions escalated after the SDB announced enticing incentives for diamond traders to close their offices in BDB and relocate their operations to Surat. This move has sparked dissatisfaction among the diamond trading community in Mumbai, known as the global hub of polished diamond trading.

The SDB management, led by the influential diamond barons, including Kiran Gems, has revealed a one-year waiver of property tax and plans to honor the early entrants by prominently displaying their names on the entry gates of the SDB in Surat. While these measures are aimed at expediting the establishment of SDB, slated to be inaugurated by Prime Minister Narendra Modi in November 2023, they have caused considerable discontent among Mumbai’s diamond community.

Mehul Shah, the vice president of BDB, expressed his disappointment, stating, “We (Bharat Diamond Bourse) always prioritize the Indian diamond industry. Encouraging diamond traders in Mumbai to shut down their offices in BDB and move to SDB by offering incentives and attractions is not in good taste for the industry. I would advise the SDB management to refrain from such gimmicks.”

The ongoing dispute between Surat and Mumbai diamantaires has led the diamond traders in Surat to form a separate association, namely the Surat Diamond Traders’ Association (SDTA), despite the existence of the long-standing Surat Diamond Association (SDA) established in the 1980s. The majority of the diamond traders in Surat belong to the Palanpuri Jain community, while the Saurashtrian Patels also hold significant control over the diamond industry. The Saurashtrian Patels have witnessed a rapid rise in the sector over the past two decades, establishing large diamond companies in Surat.

The diamond industry in Mumbai and Surat has historically shared strong interconnections when it comes to diamond trading. However, the recent actions by the SDB and the subsequent formation of the SDTA in Surat indicate a growing divide and a potential shift of diamond business from Mumbai to Surat.

The Bharat Diamond Bourse, a symbol of Mumbai’s prominence in the global diamond market, now faces the challenge of retaining its position as the preferred destination for diamond traders. It remains to be seen how this cold war between the Big Brother and the younger brother will unfold, and whether the allure of the SDB’s incentives will sway diamond traders away from the traditional hub of Mumbai.

As the diamond community in both cities closely watches the developments, industry insiders and experts are keen to observe the potential impact on the overall dynamics of the Indian diamond industry. The rivalry between Bharat Diamond Bourse and Surat Diamond Bourse could reshape the landscape of diamond trading in the country and set the stage for a new era in the sector.

“We are keenly observing the developments unfolding in the diamond industry” said a diamond industry analyst. “Diamond companies and traders won’t be able to shift their operations completely from BDB and they will keep operating from Surat and Mumbai. Surat lacks international air connectivity, transportation facilities, and other issues which bothers the diamond traders in Mumbai”