Coronavirus: Surat diamond industry stares at Rs 8,000 cr loss

Surat diamond industry is likely to face a loss of around Rs 8,000 crore in next two months as Hong Kong, which is a major export destination, has declared a state of emergency due to coronavirus outbreak in China, say experts. Hong Kong is a major business hub for Surat diamond industry, but schools and colleges have been closed re till first week of March and even businesses are seeing a dip in view of outbreak of vel coronavirus.

According to Gems and Jewellery Export Promotion Council (GJEPC) regional chairman Dinesh Naviya, polished diamonds worth around Rs 50,000 crore are exported from Surat to Hong Kong every year.

"That's around 37 per cent of total exports from here. w, due to coronavirus scare, Hong Kong has declared a month-long vacation. Gujarati trers having offices re are coming back to India," he said.

If situation does t improve, it will have a huge impact on Surat diamond industry, which polishes 99 percent of all rough diamonds imported in country, he said.

" Surat diamond industry is staring at a loss of around Rs 8,000 crore for February and March," he ded.

Ar industry expert and diamond merchant Pravin Nanavati said re is a possibility of cancellation of an international jewellery exhibition in Hong Kong, to be held next month, due to coroavirus scare, which would hit jewellery business in Surat.

"Polished diamonds and jewellery me in Surat reach across world through Hong Kong only. w, due to vacation re, our business is totally closed. Trers are also returning to India," he said.

If situation does t improve, Surat diamond tre losses may run into "several thousand crores", he said. "We have been informed that international exhibition in Hong Kong may be put off due to coronavirus scare. We sell huge quantity of diamonds at mega event," Nanavati said. Orders are also placed at event and entire year's manufacturing targets are set, based on response that Surat diamond trers get re, he said.

"If event gets cancelled, we will lose huge business" he ded.

Hong Kong has one of world's busiest airports and is a major transit point for China. It is also struggling with virus outbreak, with 18 people testing positive for disease, including one who died. On Tuesday, health officials in Hong Kong warned re was w growing evidence of local transmissions cases where people have become infected without travelling to China.

coronavirus is a large family of viruses that causes illnesses ranging from common cold to acute respiratory syndromes, but virus that has killed people in China is a vel strain and t seen before. Common symptoms of vel coronavirus strain include respiratory symptoms such as fever, cough and shortness of breath, according to WHO. So far, disease has killed more than 400 people in China and infected a furr 20,000, nearly all of m in Hubei, a province in central part of country.