Rating card for diamond trade

The Surat Diamond Association (SDA)plans to introduce a rating card system for diamond industry members in the near future.

"The diamond industry of Surat is run solely on the basis of trust, but of late, the instances of fraud, non-payment, etc. have gone up. The entire diamond industry is affected due to such elements," Surat Diamond Association president Nanu Vanani, told Business Standard.

The diamond industry in Surat contributes over Rs 50,000 crore of revenue through exports of cut and polished diamonds.

"It is necessary to improve transparency and security in the functioning of diamond industry. SDA has taken the lead with the rating card system," Vanani said.

The card will be made mandatory for every player in the industry, like brokers, traders and factory owners.

The cards will be classified into different categories and issued on the basis of economic stability and past track record.

This will automatically check antisocial elements active in the industry," Vanani said.

SDA has prepared a preliminary draft of the rating card system and circulated it. It has reportedly evoked a positive response and SDA is inviting suggestions through meetings and group discussions.

"The suggestions would help in giving a final shape to the system," Vanani said.

SDA said it aimed to be the first to introduce the rating card system and make it effective.

"The target is to implement the system after Diwali, but only everything is in place in the system," Vanani added.