Such is the terror spread by underworld and extortionists that several merchants chose to host their family weddings in Surat recently. An extravagant marriage in Mumbai is a sure invitation to trouble, an industry insider told Express Newsline.

Though the diamond city accounts for a major chunk of the world's processed diamonds -- Gujarat, or more specifically Surat, accounts for more than 80 per cent of the annual export figures of Rs 17,000 crores -- most diamond merchants so long preferred to market out of Mumbai because of the import/export and other infrastructural facilities available there.

Besides infrastructure, Mumbai has little else going for it, say industry sources. As a merchant points out on condition of anonymity, ``The threat of communal violence a long spell of which affects import and export and, consequently, work in the units is always there''.

Ironically for the merchants, the move to shift the marketing base to Surat has come at a time when Gujarat, especially South Gujarat, itself is reeling under communal tension.

``The only reason why merchants have not already shifted base here is because the facilities in Surat are not up to the mark'', says Surat Diamond Association secretary Dinesh Navadia.

But if all goes right, that drawback may disappear. The SDA and the Gujarat government have already held a couple of meetings on the issue. Diamond merchants are demanding the establishment of a diamond zone near the manufacturing units -- concentrated in Varachha, Lambe Hanuman Road and Katargam areas -- for quick import and export.

While Chief Minister Keshubhai Patel has promised full cooperation on this count, the merchants have also met the industries commissioner is this regard. A meeting planned recently with Mumbai-based merchants could not come about as the chief minister was tied up elsewhere.

One reason why the local body has been getting its way with the State government is because its former president Jivraj Dharukawala is now the vice-president of the BJP's State unit. But the benefits of relocating are undeniable for both parties.

For one, it'll save the merchants the crores of rupees they spend on land, office and staff in Mumbai. According to former SDA vice-president Nanubhai Patel, an office in the metropolis costs at least Rs 2 crores, a figure that deters small traders from even thinking of exports. ``If infrastructure could be developed in Surat, a whole new bunch of exporters will crop up'', he says.

Another windfall of the move will be the creation of jobs in addition to the 10-lakh jobs the labour-intensive industry already provides. Besides, there is the chance of allied industries cropping up. This, of course, is the incentive for the State government. ``We are actually doing the State government's duty'', says a merchant.

Insiders hope that after the marketing base shifts here, it is only a matter of time before the Surat airstrip is upgraded and hoteliers make a beeline for the city.

Incidentally, some time in the early years of this decade, a Diamond Park came up with import/export facilities at Sachin. But there were few takers for it, allegedly because of its distance from the city and security problems on a few isolated stretches. But General Manager of Diamond and Gems Development Corporation R K Shihora is still hopeful of its success. ``We will appeal to merchants to use our services'', he says.

To make the facility more attractive, the DGDC last month acquired permanent custom house agents, the lack of which was often highlighted by merchants.