Flood-hit Indian diamond hub vows to meet orders

Manufacturers in India's flood-ravaged Surat city, a key diamond hub, vowed on Saturday to work extra hours to prevent major disruption in exports and meet orders from key markets in Europe and the United States.
Nearly 8,000 diamond units have suspended production after muddy water gushed into their workshops and safe deposit lockers in Surat. "We will not let exports dip at any cost," said Kirti Shah a member of the Surat Diamond Association.
The city's diamond industry is facing production losses of 1.40 billion rupees ($30 million) daily. "Cutting machines are still in water and the diamonds in the safe deposits are floating," Pravin Nanavati, a diamond manufacturer, told Reuters.
Surat, a city of three million people, processes 55-60 percent of India's total annual exports of $12 billion of cut and polished diamonds and 28 per cent of India's gems and jewellery business comes from the United States.
Big export houses say they have informed their overseas clients about their problems.
"The challenge now is for us to start again and work more to finish the pending orders," says Nanubhai Vasava a diamond exporter. Hit by a slump in demand in US markets and high prices of gold, the floods have heaped an added burden on the Surat diamond industry. "The floods have caused a serious payment crisis across the trading community. All our business plans are in water," Janak Dave, a leading diamond trader said.
The business employs over 700,000 workers. Experts say cutting a diamond and giving it the right shine is a crucial job and a small mistake could cause heavy losses.
"Our workers have lost their houses in the floods. They are troubled, we cannot allow them to cut the diamonds until they settle down and are calm," said Ravi Tyagi, a manager with Laxmi diamond house.
Many migrant labourers are returning to their villages. "I am going back home and will come back only after the city is dry," said Altaf Salim, a diamond cutter hailing from eastern India. India's overseas sales of gems and jewellery represent the country's second-largest export industry, after computer software, The trade relies heavily on Surat for a major chunk of its diamonds.