- Thursday, September 12, 2024
This is the first time in five decades that there has been a recession for two consecutive years, and the situation has worsened over the last six months
By: Shajil Kumar
SURAT-BASED Kiran Gems, one of the world’s largest manufacturers of natural polished diamonds, recently announced a 10-day vacation for its employees.
The company took this unprecedented decision in the wake of poor demand for polished diamonds in key markets such as the US and China. Its 50,000 employees will be on a holiday from August 17 to 27.
Kiran Gems chairman Vallabhbhai Lakhani told PTI that this 10-day shutdown will rationalise the production.
Other units are operating for 4-5 days a week with truncated work hours as falling demand has led to inventory imbalance. Many small units have closed down, claim industry representatives.
About 90 per cent of the world’s rough diamonds are cut and polished in Surat by around one million workers employed in more than 2,500 units.
This is the first time in five decades that there has been a recession for two consecutive years, and the situation has worsened over the last six months.
Dinesh Navadia, chairman of Indian Diamond Institute, told PTI the biggest reason behind the slowdown is the Russia-Ukraine war as well Chinese traders not buying natural diamonds.
Some also cite the Israel-Gaza conflict to be a factor.
In 2023-24, India’s cut and polished diamond exports had plunged 27.5 per cent from a year ago due to sluggish demand from the United States, China and the United Arab Emirates.
The had forced the diamond units to cut down on the import of rough diamond.
Workers’ plight
The Diamond Workers Union Gujarat (DWUG) had on July 15 set up a suicide helpline number for diamond industry workers. Within a month they received more than 1,600 distress calls.
DWUG vice president Bhavesh Tank said 65 diamond workers have committed suicide in Surat in the last 16 months. Most of them were facing salary cuts and job losses due to industry slowdown.
He claimed the most callers to the helpline had suffered pay cuts. Nearly 30 per cent callers were seeking help to pay their children’s school fees, house rent, home and vehicle loan EMIs.
He claimed that over 50,000 workers have lost their jobs this year due to the slowdown faced by the diamond polishing industries.
Recently a Surat-based diamantaire announced an initiative to help families of workers struggling to pay their children’s school fees.
Dharmanandan Diamonds chairman Lalji Patel offered ₹15,000 each to 40 students.
Industry representatives have called for more such measures to alleviate the distress faced by the diamond industry workers.
