AHMEDABAD: One of the world’s biggest hubs of diamond cutting and polishing, Gujarat’s Surat is facing significant losses due to declining diamond prices and a shortage of rough diamonds caused by the protracted Israel-Palestine conflict. Israel is a significant trading partner in the Indian diamond sector and is important to the world diamond trade.
However, this is not the first time that the trade has suffered. The fall began with the Russia-Ukraine war early last year. Many diamond workers have lost their jobs. The Gujarat Diamond Workers’ Association says 30 workers committed suicide in the city in about five months due to economic hardships and unemployment due to the downturn in the industry.
India exported $1,279.76 million worth of diamonds to Israel during 2022-23. Israel, a major trading hub, exports raw diamonds worth $1,782.80 million. However, since the Russia-Ukraine war began, there has been a lack of rough diamonds (a vital raw material for diamond processing) in Surat. According to the Diamond Workers’ Association, diamond traders have stopped importing rough diamonds for the next two months, which will trigger a rise in unemployment.
Ramesh Jilaria, president of the Gujarat Diamond Workers Association, said first it was the Ukraine war that affected the diamond industry. “The Israel-Palestine conflict has delivered a double blow, resulting in job losses to 30,000 artisans across Gujarat,” he said.
“Each year, as Diwali approaches, diamond manufacturing units are usually open for 24 hours, but this time diamond workers are getting work for up to 10 hours. Many factories have begun offering a two-day off per week. Due to a scarcity of diamonds and raw material, many small units in Surat have declared an early Diwali vacation,” says Jilaria.
Bhavesh Tank, vice-president of the Gujarat Diamond Workers’ Association, said at the moment, at least 400 diamond factories have shuttered, and 30 workers have committed suicide in Surat alone in the last five months due to factory closures.
“In Surat, there are approximately 8 lakh artisans working in the diamond industry, on which approximately at least 4 lakh families depend. If the war continues, thousands of people will lose their jobs in the next few days. We have demanded an assistance package from the state government,” he said. The association has also written to Commerce and Industry Minister Piyush Goyal.
30 suicides in 5 months
The war in Israel is the second blow to Surat’s diamond trade after the Ukraine war. The Gujarat Diamond Workers’ Association says 30 workers have committed suicide in the city in about five months due to economic hardships. India exported $1,279.76 million worth of diamonds to Israel during 2022-23. Israel, a major trading hub, exports raw diamonds worth $1,782.80 million. However, since the Russia-Ukraine war began, there has been a lack of rough diamonds in Surat.