Surat Diamond Manufacturers Form First-Ever Association to Stabilize prices

Surat : In a significant move for the diamond industry of Surat, manufacturers who specialize in jobwork processing have come together to form their own association for the first time. The initiative, which began in December 2024, aims to regulate jobwork prices and protect factory owners and artisans from financial instability caused by fluctuating rates.

The newly formed Surat Jobwork Diamond Association (SJDA) is focused on stabilizing wages and maintaining fair pricing for labor-intensive work in the diamond sector. According to Rakeshbhai Ghetia, President of SJDA, traders had been outsourcing lab-grown diamond processing at extremely low jobwork charges, leaving factory owners with no profit margins.

“Some traders were getting CVD diamonds processed at very low rates, leaving only enough earnings to cover artisan salaries. Factory owners had no margin, and many were forced to shut down,” Ghetia explained.

The unorganized nature of factory workers allowed traders to negotiate unreasonably low rates, pushing many small-scale manufacturers to the brink of closure. This realization led to the formation of an association, bringing together jobwork factory owners to ensure pricing remains stable and fair for all.

500 Members Join, 2,000 More Expected

Since the formation of SJDA, around 500 jobwork factory owners have already joined, and 2,000 more have taken membership forms. The ultimate goal is to reach 5,000 members across Surat’s diamond hubs of Varachha, Katargam, and Mahidharpura.

The association’s first priority is to set standard jobwork rates that will allow factory owners to pay fair wages to artisans while maintaining the viability of their businesses.

“With traders consistently outsourcing work at the lowest possible price, factory owners are struggling to remain competitive while still paying artisans fair wages,” said Vijay Navadia, Vice President of SJDA. “We will soon finalize a decision to increase CVD jobwork wages and maintain a stable pricing system.”

Committees Formed to Regulate Prices

To oversee these efforts, three committees have been established for the Varachha Road, Katargam, and Mahidharpura industrial areas. These committees have already conducted three to four meetings and are close to finalizing a price structure for jobwork rates.

Navadia emphasized that the goal is to ensure no one works below cost, regardless of whether they operate small workshops with 8-10 workers or larger factories.

“We want to maintain a uniform jobwork charge across the industry. If prices are stabilized, factory owners can afford to pay artisans well, ensuring sustainability for everyone in the diamond manufacturing chain,” he added.

A Turning Point for Surat’s Diamond Industry

The formation of SJDA marks a turning point in Surat’s highly competitive diamond industry. With lab-grown diamonds gaining market share, maintaining profitability for traditional manufacturers has become increasingly challenging.

By fixing standard rates, the association hopes to prevent undercutting, protect small-scale manufacturers, and ensure fair wages for artisans. The upcoming months will be crucial in determining whether the association’s efforts succeed in reshaping the industry and bringing long-term stability to Surat’s diamond jobwork sector.