A significant number of diamond units in Surat, India, have temporarily closed or are operating on reduced schedules as global demand continues to decline.
This development comes after Kiran Gems, one of the major players in the industry, announced last week that it would halt production for 10 days starting on Saturday, August 17. The decision aims to rebalance supply and demand in the market.
Jagdish Khunt, president of the Surat Diamond Association, informed the Hindustan Times that many smaller and medium-sized polishing operations in Surat, India’s diamond capital, are either shutting down or working reduced hours.
“The industry is going through a difficult time. The slowdown has significantly impacted small and medium-sized businesses. Currently, around 3,500 of the 5,000 diamond cutting and polishing units are still operational. Many are coping with the crisis by cutting back on working hours,” Khunt said.
An anonymous source within the industry revealed that many smaller operations are closing for two or three days a week. There are growing concerns about potential job losses when the diamond units resume full operations after the summer break on August 28.
India’s polished diamond exports have decreased every month this year, with a significant 26% year-on-year drop in June, bringing the total to $1.02 billion.
In an effort to stabilize prices, manufacturers drastically reduced their rough diamond imports last October. This move was coordinated by the Gem and Jewellery Export Promotion Council (GJEPC) after 18 months of declining prices.
