Dubai diamond traders look to Surat for rough stone auctions

Koin International and Stargems Group are currently exploring regular competitive bidding events for uncut stones in Surat, according to media reports. These two Dubai-based diamond trading firms were in discussions with India’s gems industry body in Surat to shift rough diamond auctions to Surat. The reason being the Israel-US and Iran war has shut down Gulf trade routes to get shipments to and from the UAE to a near-standstill. However, Industry leaders say that India’s complicated customs process and GST levies are deterrents for traders to come to Surat for auctions.

Traditionally, Surat traders  have flown to Dubai to bid for rough stone parcels and bring them back for cutting and polishing. The current war situation has largely stopped traders from making those trips, due to less confidence in Gulf-bound air travel.

Currently, as Surat’s diamond industry depends directly on the UAE-based trading companies for a bulk of its rough stone supply, a conducive arrangement must be made for the smooth running of the business. In addition, as Surat houses the well-equipped Surat Diamond Bourse to conduct the Diamond Auctions effectively, it would definitely benefit the diamond industry, say diamond traders.