Surat : Workers at Bhanderi Lab Grown Diamonds protest three months of unpaid wages

SURAT, GUJARAT: The world’s largest diamond cutting and polishing center, Surat, is witnessing a turbulent phase in its lab-grown diamond industry. On Tuesday, over 600 workers from the reputed Bhanderi Lab Grown Diamonds in Surat staged a protest at the company’s premises in Varachha, demanding their outstanding wages for the past three months. The protest, which turned violent, resulted in vandalism before the Varachha police intervened to disperse the demonstrators.

The lab-grown diamond sector, once hailed as a revolutionary and sustainable alternative to natural diamonds, is grappling with significant challenges. Industry insiders attribute the current crisis to dwindling international sales and a sharp decline in prices. The situation has been exacerbated by recent market dynamics and strategic decisions by major players.

A critical factor contributing to the industry’s woes is the significant price cut by De Beers, a diamond giant known for both natural and lab-grown diamonds under its Lightbox brand. Last Friday, De Beers announced a substantial 37% reduction in the price of its lab-grown diamonds, slashing the cost from $800 to $500 per carat. This move, driven by plummeting wholesale prices, has added pressure on smaller manufacturers struggling to compete in an increasingly competitive market.

The decision by De Beers to implement a permanent reduction in prices reflects a broader trend in the industry. Man-made gems have surged in popularity among cost-conscious consumers, but this increased demand has not translated into sustainable profitability for producers. The lower price points, while attractive to buyers, have squeezed margins and created financial strain for companies like Bhanderi Lab Grown Diamonds.

“The protest at Bhanderi Lab Grown Diamonds is symptomatic of the broader distress affecting the sector. Workers, whose livelihoods depend on the stability of the industry, are facing uncertainty and financial hardship. The violent outburst at the Varachha premises highlights the urgent need for intervention and support to address the grievances of the workforce” said Bhavesh Tank, vice-president of Diamond Workers’ Union Gujarat (DWUG).

As the lab-grown diamond industry navigates these turbulent waters, stakeholders are calling for collaborative efforts to stabilize the market. This includes exploring new markets, enhancing product differentiation, and fostering innovation to create unique value propositions. Additionally, there is a growing emphasis on transparent and ethical practices to build consumer trust and loyalty.