Amid a significant downturn in Surat’s diamond industry, a local diamantaire has taken the initiative to assist families of workers who are struggling to pay their children’s school fees. This move has prompted industry representatives to call for more such efforts to support the affected workers.
Surat, a global hub for diamond cutting and polishing, processes around 90% of the world’s rough diamonds. The city’s diamond industry employs approximately 1 million workers across more than 2,500 units. However, due to the ongoing Russia-Ukraine conflict and weak demand from China—a key market—surplus inventory has led to severe disruptions. According to Bhavesh Tank, Vice President of the Surat Diamond Workers Union, about 50,000 workers have lost their jobs this year, and those who remain employed have experienced a 30% reduction in their salaries.
The financial crisis has taken a toll on the mental health of workers, with many considering drastic measures due to their inability to meet basic needs, including their children’s education. In response to distress calls received through a helpline launched by the Surat Diamond Workers Union, Lalji Patel, Chairman of Surat-based Dharmanandan Diamonds, has offered financial assistance. On Sunday, Patel distributed cheques of ₹15,000 each to 40 students from families in need.
“There is a sense of depression in the diamond industry,” Patel stated. “To ensure that the education of children from recession-hit diamond workers’ families is not disrupted, our firm has decided to provide financial aid. If other diamond companies also take similar steps, it could significantly alleviate the hardships faced by these workers.”
The industry has been severely impacted, with major players like Kiran Gems recently announcing a 10-day halt in production, effectively extending vacations for their workers. Other units have reduced operations to just 4-5 days a week due to an inventory imbalance.
Industry experts say this is the first time in 50 years that the diamond industry has faced a recession for two consecutive years. The situation has deteriorated further in the past six months, leading to the closure of small diamond units and leaving many workers jobless and unable to pay their children’s school fees.
The Surat Diamond Workers Union, alarmed by the rise in suicides among distressed workers, recently set up a helpline. Many callers expressed concerns about affording school and college fees for their children. After assessing the financial needs of these families, 40 students were selected to receive the financial aid.
Dinesh Navadia, Chairman of the government-sponsored Indian Diamond Institute, highlighted the Russia-Ukraine war as the primary cause of the industry’s slowdown. He noted that Chinese traders have ceased purchasing natural diamonds, exacerbating the situation. “It is crucial that other diamond companies follow the example set by Dharmanandan Diamonds,” Navadia said. “Such initiatives could foster a positive environment within the diamond industry.”
The need for collective action is clear, and the industry is hopeful that more companies will step forward to support the families of workers during these challenging times.
