Surat diamond traders flay arrest of Indians in China

GANDHINAGAR - There was considerable anxiety Wednesday in Surat, the hub of India’s gem cutting and polishing industry, following reports that 21 Indians have been detained in China on charges of smuggling diamonds.

A report in China’s Shenzhen daily said authorities there last week busted a ring that sourced diamonds from Hong Kong and hired Indian and local carriers to smuggle the precious rocks into Shenzhen.

The bust, according to the newspaper, followed a two-month investigation that resulted in the arrest of 50 suspects, including the Indians, at Luohu checkpoint in Shenzhen Jan 8.

Chinese authorities also seized diamonds they were carrying, which had Gemological Institute of America (GIA) certifications, as well as cash.

Surat-based diamond traders have critised the development.

Said Surat Diamond Association secretary Rohit Mehta: “We take strong exception to the demeaning of our people and preventing them from contacting their near and dear ones.”

According to Mehta, existing rules could have been misinterpreted. “These are best sorted out in a civilised manner. But to malign those involved in the business with such serious charges is uncalled for.”

Mehta said Chinese officials had repeatedly visited Surat to understand, seek guidance and help to promote the diamond industry in their country.

“We would like to believe that the Chinese government means well and would not like to vitiate the atmosphere and ties between the diamond industries of the two countries.”

He also said the diamond association was waiting for the personal details of the arrested Indians and that of the issues involved, which should become clear after consular access to the detainees is granted to the Indian government.

Several diamond traders, declining to be named, said many diamantaires who had moved to China today faced considerable problems but were unable to return for a variety of reasons.

The Indian diamond industry is once again witnessing a resurgence after a bad year in the wake of the global meltdown, which saw a spate of suicides in Surat.

While diamond units refused to open after the Diwali break in 2008, vacations had to be cut short in view of the rise in demand a year later, with exports of cut and polished diamonds surging 123 percent.

According to data released by the Gem and Jewellery Export Promotion Council, exports stood at $1.34 billion last November, as against $600 million in the corresponding month in 2008.

In rupee terms, exports rose from Rs.2,952 crore to Rs.6,252 crore.