The diamond industry in Surat, the center of diamond manufacturing, is in the grip of a slump due to falling demand for diamond jewelery in China, America, Europe and the Middle East amid the Russo-Ukraine war and global recession. In such a situation, if the factory does not start even after the opening of the school, then the condition of the families of the jewelers will worsen. Therefore the Diamond Workers Union will make a presentation today in Gandhinagar to the Labor Minister on the issue of small and medium diamond factories in Surat and apprise him of the situation.
Diamond Workers Union Gujarat president Rameshbhai Jilaria said that 10 per cent small diamond factories operating 2, 5 or 10 bells will not open even after the June 5 holiday. However, artisans living in villages of Saurashtra and North Gujarat will start coming to Surat with their families from June 1 as schools are starting and if they do not get work here, a serious situation will arise. Around 300 factory owners have asked jewelers to wait for the market situation to improve or sit down when favorable work is available in other factories. A delegation of Heera Shramik Sangh will go to Gandhinagar on Monday to present the state’s Labor and Employment Minister Balwant Singh Rajput regarding the condition of the jewellers.
Bhavesh Tank, vice-president of Heera Shramik Sangh, said that we have handed over the memorandum to the Surat collector and labor department. Companies and manufacturers give holiday salary to artisans so that some relief can be given. These companies used to keep 7 days holiday for the jewelers going home in the summer. Instead, this year a holiday of 15 to 21 days was announced. Some manufacturers have announced a one month holiday. There is a fear among artisans that this holiday will be extended. How serious the recession is can be gauged from the fact that the company which gives vehicles, jewelery and flats as bonus to the employees has also taken a leave and got an idea of the market situation.
If the boards of big companies are sitting then what will be the condition of small companies? Due to the recession, the timings of the factories have been changed from 08:30 to 07:00 to 09:00 to 4:00 in the morning. In the wake of the recession of the diamond industry, more than 300 factories operating between two and five bells have closed. There is concern among the artisans whether the factories will open after June 5. Many accounts have been closed in Varachha Matawadi, Ghanshyamnagar, Nandudoshi ki Wadi of Katargam, Jeram Morar ki Wadi, Pandol.
Why the sudden slowdown in the diamond industry?
Diamond industry insiders say that Russia’s war with Ukraine is also one of the reasons for the sudden slowdown in the diamond industry. 29 percent of rough diamonds are produced in Russia. The sale of which has been banned by the US, UK and some EU countries. Countries like India and Belgium have been badly affected by this decision. The main market for finished diamonds and jewelery is in China, USA and European countries. Here the demand for diamond jewelery has reduced considerably. Its effect has been seen on India’s exports. India’s gems and jewelery exports are set to decline from Rs 1.82 lakh crore in FY2022 to Rs 1.76 lakh crore in FY2023. The Russia-Ukraine war has led to an increase in the prices of domestic and industrial gas from Russia. On the other hand, the recession deepened as American banks filed for bankruptcy. Surat and Mumbai are full of rough diamonds. The decrease in demand has affected the diamond factories of Surat which are running on job work. The Heera Shramik Sangh is demanding the Gujarat government to restart the Ratnadeep scheme for the artisans of the closed factories. They are requesting the government to announce a relief package for the artisan class.
