Last Updated : 06 October 2009 at 20:15 IST

Surat seeks to set up diamond trading hub

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SURAT (Commodity Online): Khubsurat city of diamonds, Surat, is now vying to become the a trading hub for rough and polished diamonds.

Surat Diamond Association (SDA) has requested Union minister of commerce and industry Anand Sharma to give the green signal for setting up the Diamond Trading Hub in Surat.

About eight of every 10 diamonds found in the world are cut and polished in Surat. The rough diamonds pass through several hands on their way from Antwerp in Belgium to the manufacturing units here, which makes them quite expensive.

SDA has now requested Sharma for clearance for setting up a diamond trading hub as also a diamond bourse here.

SDA president Rohit Mehta said Antwerp and Dubai are diamond trading hubs, and a hub here will benefit the diamond traders.

Majority of diamonds imported to India are from Antwerp, and the big merchants are into this business. A diamond trading hub will benefit the small manufacturers in the city as they will get diamonds at cheaper rates.

This will also benefit the import and export business. Several overseas businessmen will also come to Surat and this would benefit them in their business.

According to the recent foreign trade policy declared by the government, several diamond bourses will be set up in the coming years. At present, there is only one diamond bourse in the country at Mumbai, which is at its preliminary stage and is yet to start functioning.

The hub should be set up through the PPP (Public Private Partnership) model and SDA is ready to provide all support in this regard.

The diamond manufacturing units are set up here. Besides, over five lakh people are working in different diamond units as artisans. The small players in the industry have to purchase the rough diamonds at higher rates from the big merchants here as the diamonds become expensive after passing through several chains. With a diamond trading hub in Surat, several foreign companies will open their outlets in Surat and the local manufacturers will also get diamonds at cheaper rates. Besides, domestic flights have also commenced from Surat.