Diamond Companies in Surat Shift to Modest Diwali Bonuses 

Surat : Surat diamond industry has been celebrated globally for rewarding its employees with lavish Diwali bonuses, such as cars, apartments, and fixed deposits. However, this year, the industry’s traditional sparkle has dimmed due to the economic downturn. Many diamond companies have opted to provide more modest gifts, like cash bonuses and small electronic appliances, to express appreciation for their employees.

Economic challenges, driven by factors such as the prolonged Ukraine-Russia war, conflicts in the Middle East, and weakening economies in major countries like the United States, have hit the Surat diamond sector hard. The traditionally robust diamond market in Surat is now grappling with one of its worst slowdowns in fifty years. Once known for extravagant Diwali bonuses, the industry is feeling the pressure of reduced global demand and changing consumer preferences favoring lab-grown diamonds over natural stones.

While the industry’s resilience has been tested before, experts in the diamond trade point out that the current slump is unprecedented. “The market conditions are tougher than we’ve ever seen,” said one industry insider. “The impact on businesses and workers is significant, and there is uncertainty about when or if demand will return to previous levels.” Traditionally a time when employees receive substantial bonuses in the form of high-value items, this Diwali has seen companies scaling back. Most are now giving practical items, such as air fryers or microwaves, along with smaller cash bonuses, in place of past large-scale bonuses like apartments and vehicles.

The shift reflects broader difficulties faced by diamond companies, with many implementing new cost-saving measures. Several firms have reduced working hours, instituted two-day weekends, and even retrenched workers to manage costs. Although many in the industry had hoped for an uptick in demand ahead of the Diwali and Christmas season, the anticipated boost remains uncertain amid the broader recession.

For diamond workers, the financial strain is severe. As the industry contracts, so do their earnings and job security. One case that has drawn attention involves Virani Diamonds, a company based in Surat’s Katargam area. Managers Amit Babu Virani and Viren Babu Virani reportedly disappeared, allegedly without paying wages totaling Rs 10.41 lakh to nine of their diamond workers. The unpaid employees have since filed a complaint through the diamond workers’ union, leading to a police investigation and a registered case against the managers.

The industry’s current situation is a stark contrast to its former prosperity. Once a significant contributor to Surat’s economy and global reputation, the diamond trade faces an uncertain future. The dual challenges of an evolving market that increasingly favors lab-grown diamonds and a prolonged global recession have cast a shadow over this year’s Diwali festivities for both diamond companies and their employees.