India-mined rough diamonds garner Rs 7.38 crore worth tenders in Surat

In a first since 1998, the rough diamonds mined in India were up for display for auction by state-run NMDC in association with GJEPC

Surat witnessed a display of India-mined rough diamonds from Panna mines in Madhya Pradesh between September 24 and 27. 

Ahead of the e-auction, it has garnered a healthy Rs 7.38 crore of tender results out of a roughly Rs 25 crore worth of diamonds at display.

In a first since 1998, the rough diamonds mined in India were up for display for auction by state-run National Mineral Development Corporation (NMDC) in association with Gems & Jewellery Export Promotion Council (GJEPC). 

With the close of the e-auction a few days ago and on the back of the display at the newly built Surat International Diatrade Centre (SIDC), the event has garnered tenders in the auction for 5950.23 carat for bids worth Rs 7.28 crore. As per market sources, rough diamonds of about 24,000 carat worth approximately Rs 25 crore were to be up for display.

Albeit minuscule compared to the amount of imported rough diamonds traded in India for polishing, industry watchers believe the e-auction would augur well for rough diamonds mined from within India. For instance, India imported 16.50 million carats of rough diamonds valued at $15.72 billion in financial year 2018-19. 

According to Dinesh Navadiya, Regional Chairman of GJEPC, continued streak of display year-on-year at Surat will result in more buyers bidding in the auction for the India mined rough diamonds.

Sources peg production of rough diamonds by NMDC at about 40,000 carat per annum, apart from sales of around 30,000 to 33,000 carat per annum or Rs 40 crore in sale value.

NMDC has switched over from physical auction to e-auction or online mode of sale since 2015-16 in which display of rough diamonds for every e-auction is being conducted first at Panna followed by Mumbai and now Surat before conducting e-auction.  While earlier anyone could participate in the e-auction, the display was being conducted only at two places, now Surat would add as the third venue.