Surat Diamond Artisans Denied Diwali Bonuses
Surat : This year’s festival of lights, Diwali, is going to remain dark for the tens of thousands of diamond artisans in the world’s largest diamond cutting and polishing centre in Surat. Following a...
Surat : This year’s festival of lights, Diwali, is going to remain dark for the tens of thousands of diamond artisans in the world’s largest diamond cutting and polishing centre in Surat. Following a long-standing recession in the Surat diamond industry, the majority of the diamond company owners, which includes the big diamond companies, have decided not to give Diwali bonus to the diamond artisans.
Every year, diamond artisans early await the Diwali festival and the 20 days long vacation to visit their hometowns in Saurashtra with their families. Diwali bonus has become a tradition in the diamond industry for a long time. It is that time of the year when the diamond artisans, expecting Diwali bonus–dual wages–purchase clothes and other goodies for their children and family members.
For the first time in the history of the Surat diamond industry, the diamond artisans will not be able to make Diwali purchases as their employers have decided not to give Diwali bonus to their workers.
There was once a time in the diamond industry that the diamond bosses like Savji Dholakia, chairman of Shree Harikrishna Exports would gift brand new cars, flats and jewellery to its workers as Diwali bonus and gift ahead of the festival. Many other diamond company owners would give cash equivalent to the take home wages of the diamond artisans as Diwali bonus.
Surat, the diamond capital of the world, is grappling with job losses, suicides among diamond workers, overproduction due to the ongoing recession. The polished diamond prices in the international market have plummeted by almost 35% in the last one year, giving a tough time to the diamond manufacturers. The demand for polished diamonds is dwindling in the western countries, including in the United State (US), which is the world’s largest diamond consumer market.
Several small diamond factories having about 20-40 emery wheels have downed their shutters in the last few months due to the dwindling demand. According to the Diamond Workers Union Gujarat (DWUG), about 50,000 diamond artisans are unemployed due to the layoffs in the industry, while about 60 diamond artisans have committed suicide in the last one-and-a-half-year.
The ongoing war between Russia and Ukraine has further destabilised the diamond trade. US sanctions on Russian diamonds have blocked the flow of rough diamonds from Russia’s state-owned mining company, Alrosa, to India. This disruption has directly impacted the Surat industry, which depends on Russian diamonds, especially the smaller stones ideal for Surat’s manufacturing processes. The sanctions have led to a reduction in work and wages for diamond artisans in Surat, with many facing unemployment.
According to the Global Trade Research Initiative (GTRI) report, a 24.5% drop in rough diamond imports from US$ 18.5 billion in FY 2022 to US$ 14 billion in FY 2024 shows weaker global markets and fewer processing orders. After adjusting for re-exported rough diamonds, net imports declined by 25.3%, from US$ 17.5 billion to US$ 13.1 billion, indicating reduced demand for processing in India.
Exports of cut and polished diamonds fell by a higher margin of 34.6%, from US$ 24.4 billion in FY 2022 to US$ 13.1 billion in FY 2024. Additionally, the share of unsold diamonds returned to India increased from 35% to 45.6% during this period. Net exports of cut and polished diamonds dropped by 45.3%, from US$ 15.9 billion to US$ 8.7 billion, reflecting a weak market and rising unsold inventory.
Diamond artisans employed at the Asian Star Company Limited, a leading diamond manufacturing company located at Varachha Khand bazar went on a flash strike to oppose the management’s decision to cut wages by 15% and no Diwali bonus. The workers shouted slogans against the company after the talks with the agitating workers failed on Saturday. When contacted Vipul Shah, chairman and managing director of Asian Star group said, “We have taken a decision not to give Diwali bonus due to the ongoing market condition. We have taken all the steps as per the law. We have not laid off any workers, nor have we reduced wages. The strike call was given by a few workers who are spearheading the agitation”
