Massive floods that engulfed India's diamond-producing hub of Surat have badly hit exports of the precious stones, Commerce Minister Kamal Nath said Thursday.
"The floods have severely hit production and output is down but we are confident of overcoming the situation posed by declining production," Nath told reporters in the Indian capital. The floods affected 10 million people in the western coastal state of Gujarat and left much of Surat under water for five days earlier this month.
Gushing water in the city of 350,000 residents submerged diamond polishing units.
Bakul Mehta, the chairman of the Gems and Jewellery Export Promotion Council, said last week that although Surat's polished diamond stocks were safe, plant and equipment had suffered heavy flood damage.
Surat processes 55 to 60 percent of India's total annual exports of 12 billion dollars of cut and polished diamonds.
The national government was "trying to estimate the loss of diamond exports due to the floods," Nath said, according to the Press Trust of India.
Nath said Surat had been hit by floods last year but not as badly.
Disaster management experts say Surat will return to normal within three weeks but its diamond industry may remain crippled for a longer period due to damaged equipment and absent workers.
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