Surat diamond exports resume but a $2 billion inventory headache remains

So far, initial exports are estimated to be of the tune of Rs 600 crore which is minuscule compared to the polished diamond inventory

The diamond industry in Surat has heaved a sigh of relief with the resumption of exports, though in a small quantity.

Though exports to Hong Kong, a major destination for India's polished diamonds, have resumed, the industry is currently sitting on an inventory worth around $2.3 billion. Initial exports are estimated to the tune of Rs 900 crore, which is minuscule when compared with the polished diamond inventory.

"The industry, especially in Surat, is in no position to resume production until the cost of production becomes viable. While exports have begun, it is nothing compared to the diamond inventory lying