Ray of hope for diamond units hit by slowdown

Surat: The gems and jewellery export promotion council (GJEPC) has come to the rescue of the small diamond manufacturing units in the diamond cutting and polishing centres in Saurashtra and North Gujarat, facing acute shortage of rough diamonds for processing on job work.
The GJEPC has tied up with few rough diamond importers in Surat and Mumbai for the direct supply of rough diamonds to these small units for processing on job work. For this, the respective diamond associations in the cutting and polishing centres will have to send details about the requirement of the rough diamonds stock to the GJEPC on monthly basis.

Regional chairman, GJEPC, Dinesh Navadia told TOI, “About 30% of the small units in Saurashtra and North Gujarat including Navsari have shutdown due to non-availability of job-work. The factors include rising prices of rough diamonds, decreasing polished diamond prices and bank financing problems in the industry. However, the associations approached us for the solution and we have promised them supply of rough diamonds on regular basis”

According to Navadia, the rough diamond importers in Surat and Mumbai are ready to supply the stock for processing in these small centres, provided they get orders in bulk quantity above 5,000 carats per month. The associations have been asked to compile the stock requirement of each of the units in their respective centres for the supply of the required stock of goods.

“The small centres in Saurashtra and North Gujarat process small diamonds meant for the markets like USA and Latin America. Recently, the prices of small diamonds have reduced by almost 20%, forcing many individual unit owners in Surat to stop the supply of rough diamonds into these centres for job work. However, the international market is looking upbeat in 2019 and the rough importers are ready to help the small unit owners” said Navadia.

Lalit Thummar, president of Amreli Diamond Association said, “If the GJEPC’s efforts are successful then the small unit owners in Amreli will be receiving direct supply of rough diamonds. Also, the cost of processing will come down as the GJEPC has set-up common facility centre (CFC) with latest machinery for sorting, laser cutting and other diamond processes, which were earlier done in Surat”

Vitthal Mendpara, president of Bhavnagar Diamond Association said, “Most of the units in Bhavangar operate on job work and that many have shutdown in the last one year due to non-availablity of job-work from Surat merchants. The units could re-start once again as the rough importers in Surat and Mumbai will be providing direct supplies of rough diamonds to the units”