Surat (Gujarat) [India], November 10: Surat, the world’s largest diamond cutting and polishing center, has the potential to become the world’s largest producer of lab-grown diamonds. The reason is that the production of lab-grown diamonds in the dragon land (China) has been severely hampered due to the country’s severe coal shortage.
Out of the total 7 million carats produced in the world per annum, China alone produces 3 million carats. India’s lab-grown diamond production is somewhere between 1.5 million to 2 million carats per annum.
A reduction in output by the world’s largest lab-grown diamond producer is expected to drive up prices in the weeks leading up to Christmas, and there is a good chance for lab-grown diamond manufacturers in Surat, in particular, and India in general, to capitalize on the opportunity by ramping up production.
Industry sources said the lab-grown diamond jewellery market has grown exponentially over the last few years. The U.S is the largest consumer of lab-grown diamond jewellery. There are many leading diamond jewellery brands in the U.S where one can purchase lab-grown diamond jewellery at much lower prices compared to natural diamond jewellery.
In China, the production of lab-grown diamonds has been hit hard due to the severe shortage of electricity. The lab-grown diamonds production is down by as much as 15%.
Sources said that China is facing a severe shortage of coal as President Xi Jinping is on the mission to drastically reduce greenhouse gas emissions, which has hit hard the lab-grown diamond production.
On the other hand, Surat is the largest producer and manufacturer of lab-grown diamonds after China. About 99% of the lab-grown diamonds produced in the world are cut and polished and set in jewellery in Surat.
Anirudha Lidbide, a diamond industry analyst told TBT, “The lab-grown diamonds are priced lower by as much as 60% compared to the natural diamonds. Once set in gold or silver jewellery, the lab-grown diamonds look 100% identical to that of the natural diamonds. IT is very difficult for a layman to identify whether the diamonds he or she is wearing is natural or lab grown”
Lidbide added, “The demand for lab-grown diamond jewellery is increasing in the U.S and India. As China’s production of lab-grown diamond has been hit due to electricity shortages, India has a fair chance to grab the opportunity by ramping up the production”