Surat, India’s diamond capital, is at the heart of a groundbreaking move that could reshape the global diamond trade. But here’s where it gets controversial: while the city polishes 8 out of every 10 diamonds in the world, its small and medium-sized manufacturers often struggle to access raw materials. Enter the Gems and Jewellery Export Promotion Council (GJEPC), which has just launched a bold initiative to level the playing field. On Tuesday, GJEPC established the Small Medium Development Organisation (SMDO), a non-profit subsidiary aimed at streamlining the supply of rough diamonds from Botswana—the world’s second-largest producer—to Surat’s smaller players. And this is the part most people miss: this move isn’t just about business; it’s about empowering thousands of workers and sustaining an industry that employs over 5 lakh people in Surat alone.
Here’s how it works: SMDO will act as a bridge between Botswana’s Okavango Diamond Company (ODC) and Surat’s diamond manufacturers. By consolidating the demand for rough diamonds from small and medium enterprises, SMDO will negotiate bulk purchases from ODC at preferential rates. This approach not only reduces costs but also ensures a steady supply, a lifeline for smaller players in an industry dominated by giants like De Beers. But here’s the kicker: while De Beers controls 70% of Botswana’s rough diamond output, ODC’s role in selling the remaining 30% directly to countries has been underutilized—until now.
During a recent visit to Botswana with India’s President Droupadi Murmu, GJEPC leaders secured a green light from Botswana’s government to prioritize Surat’s smaller manufacturers. Jayanti Savaliya, GJEPC’s Gujarat region president, explained, ‘We’re forming a board of 10 to 12 members within SMDO, all representing small and medium players. This collective approach will amplify their voice and bargaining power.’ Once the rough diamonds are procured, they’ll be distributed to members based on their needs, ensuring fairness and accessibility.
But here’s where it gets even more intriguing: while this initiative aims to boost the natural diamond industry, it comes at a time when global demand for polished natural diamonds has dipped due to geopolitical tensions like the Russia-Ukraine and Israel-Palestine conflicts, as well as US tariffs. Many Surat manufacturers have shifted to lab-grown diamonds (LGDs), which share the same cutting and polishing process. Jagdish Khunt, president of the Surat Diamond Association, noted, ‘Factories now often operate dual units, handling both natural and lab-grown diamonds side by side. SMDO’s focus on natural diamonds could be a game-changer once the market rebounds.’
So, here’s the big question: Will SMDO’s strategy revive the natural diamond industry, or is the shift toward lab-grown diamonds inevitable? What do you think? Is this initiative a much-needed lifeline for small manufacturers, or is it too little, too late? Let us know in the comments—we’d love to hear your take on this diamond dilemma!
