Surat Diamond Bourse Sees Surge Despite Industry Recession

Surat: Amidst one of the worst recessions in the history of the Surat diamond industry, the Surat Diamond Bourse (SDB) has witnessed a surprising boost. Despite more than 50,000 workers losing their jobs and over 60 suicides reported in the past year, the SDB, known as the world’s largest office building, saw around 40 diamond traders starting operations and trading polished diamonds during the Dussehra festival.

 While diamond markets in Varachha and Mahidharpura remain unusually quiet due to a sharp decline in international demand for polished diamonds, there appears to be a glimmer of hope at the Surat Diamond Bourse. According to an official communique from the SDB committee, approximately 40 prominent traders from Mahidharpura inaugurated their offices and conducted business on the auspicious day of Dussehra. This development has come as a positive sign amid the ongoing industry slump.

The SDB committee further reported that around 1,000 applications for office registration have been received from diamond traders, with nearly 500 approvals granted so far. On Dussehra alone, 200 traders completed their registrations, underscoring the optimism and faith in the SDB as a new business hub despite the ongoing challenges faced by the industry.

Vallabh Lakhani, chairman of Kiran Gems said that his company has done about $19 million worth of diamond trading from the SDB. Now the company is committed to import rough diamonds directly to the SDB.

The broader diamond industry in Surat is still reeling from severe economic challenges. Industry sources revealed that polished diamond prices have plummeted by nearly 40% over the last year, with little hope for immediate recovery. A drastic reduction in the import of rough diamonds has been a key factor, as manufacturers cut back on inventories to manage costs.

India’s net rough diamond imports dropped by 47% year-on-year, amounting to $642.3 million in August, marking the lowest import levels since November 2023. The trend was reflected globally as Belgium, a major diamond trading hub, saw its diamond activity, including both rough imports and exports, decline by 33% year-on-year to $671 million in September, as reported by Rapaport.

The downturn has not only affected the traders but also led to massive job losses, with more than 50,000 workers being laid off over the past year. The bleak employment prospects have had devastating consequences, with over 60 diamond workers taking their own lives, highlighting the depth of the crisis.

Despite these challenging conditions, the Surat Diamond Bourse is emerging as a beacon of resilience. Industry insiders suggest that the bourse is attracting traders due to its state-of-the-art facilities, which could potentially help stabilize the struggling industry by consolidating business operations under one roof.