Surat Diamond Industry loose sparkle Pre-Diwali: Uncertainty Looms Over Workers

Surat : The Surat diamond industry, known for its thriving diamond cutting and polishing, is witnessing an unprecedented silence in its bustling markets and factory districts this pre-Diwali season. As the festival fervor typically fills the air, this year paints a starkly different picture, marked by uncertainty and financial strain for many workers in the industry.

Ramesh Khunt, a dedicated diamond artisan among many, found himself uncertain of the future when his small diamond unit in Katargam closed its doors indefinitely last Saturday.. Alongside 50 colleagues, Khunt faced the distressing reality of a 75% wage cut and a complete absence of the customary Diwali bonus.

This story of financial hardship is not confined to a single unit or a handful of workers; it’s a narrative echoed across the expansive diamond market in the Surat diamond industry. Tens of thousands of workers are left in the dark, unaware of when their workplaces will resume operations post the festival. Such a scenario has not been witnessed since the global economic downturn in 2008, amplifying the gravity of the situation.

The silence in the diamond factories, especially in Varachha and Katargam, is palpable. The usually constant hum of the polishing ‘ghantis’ has vanished, with many major units opting for a shorter workweek in anticipation of an extended Diwali break, commencing as early as November 5.

The oldest Mahidhapura diamond market, typically buzzing with the Diwali rush, now wears a somber look. Diamond traders, instead of engaging in business transactions, find themselves discussing international conflicts and economic challenges, notably the ongoing conflict between Russia and Ukraine.

“The impact of the Ukraine war has been significant,” remarks Ramesh Kanani, a seasoned diamond merchant. “The turbulence in the market, the uncertainty in prices, and the highly volatile nature of diamond values are consequences directly linked to these global conflicts.”

Shailesh Gabani, a diamond merchant in Mahidharpura had to compromise selling 4 carats of polished diamonds for 33% less. “Had I waited for few more days then I would have got 40% less of my asking price” said Gabani.

The Diamond Workers Union Gujarat (DWUG) sheds light on the prevailing distress, revealing that most small diamond units closed their operations early for Diwali, leaving workers in the dark about reopening dates. The standard 20-day Diwali vacation is expected to stretch further into December due to an industry-wide overproduction and the ripples of international conflicts.

Bhavesh Tank, DWUG’s vice-president, illustrates the conundrum faced by the diamond units: “Just as one wouldn’t eat more food if already full in the morning, these units are grappling with excess diamond inventory and an uncertain market, leading to financial crises for hundreds of workers.”

“As the festival season approaches, the diamond industry in Surat faces an unprecedented challenge, with uncertainty looming over the fate of thousands of workers and the broader market’s stability. The echoes of this economic uncertainty, caused by global events, now reverberate through the Diamond City, casting a shadow over the festival of lights” added Tank.