West Asia Conflict Pushes Diamond Auctions to Surat Diamond Bourse

Surat: The ongoing conflict in West Asia, which has disrupted international trade, may benefit Surat’s diamond industry, with global companies shifting auction activities to the city. Dubai-based Stargems Group has moved its rough diamond auction to the Surat Diamond Bourse (SDB), officials said.

A seven-day pre-auction exhibition began on Tuesday at the Gems and Jewellery Export Promotion Council (GJEPC) office at SDB, where rough diamonds worth over ₹350 crore are being displayed for traders from India and abroad. The space has been leased to the Dubai-based company for the event.

GJEPC Gujarat regional chairman Jayanti Savaliya said the company earlier held such exhibitions in Dubai, but due to the current situation in West Asia, traders are being given the opportunity to inspect the diamonds in Surat before participating in the auction.

Sources said at least three leading rough diamond companies from Dubai are planning similar auctions in Surat in April, as the city is being seen as a safer alternative. The development is expected to boost business at the Surat Diamond Bourse, which has struggled to attract traders since its inauguration in 2023.

Industry sources said since most of the world’s diamonds are cut and polished in Surat, global suppliers are increasingly looking at the city as a second hub for rough diamond auctions. Another exhibition at SDB is scheduled between April 4 and May 1, where diamonds worth several hundred crores are expected to be showcased before auction.

Officials said the bourse has made special security and access arrangements for the event, and such auctions could help local manufacturers and traders buy rough diamonds directly without middlemen.