New Delhi: The fact is that by January 2025 a vast majority of diamond-related companies in Surat remain closed. Previous years a large number of such units suspend their operations during Diwali but this time, around 20-25 percent of them have not started functioning again due to difficult business conditions. The diamond business has closely felt the fever since the world issues such as that of sanctions of diamond from Russia due to the invasion of Ukraine in the year 2022. Lalji Patel, the chairman of Dharmanandan Diamonds said some firms closed during the festival and had a long holiday, many of which started reopening only in December 2024.
The industry has suffered from a long-term stagnation lately. Currently diamond prices have gone down by about 35% in the past two and a half years and this has affected businesses and its workforce. In the same year, the Gems and Jewellery Exports Promotion Council of India (GJEPC) revealed that exporting cut and polished diamonds decreased by 27.58% reaching to $15.97 billion, FY 2024.
This down turn has badly hit the workers in the diamond sector of Surat. DWUG’s vice president Bhavesh Tank continued stating indicating that wages have dropped and there has been a great loss of income. Regrettably, more than 45 employees are said to have committed suicide within the past year because of issue to do with money. Presently, an estimate of 800 thousand people are reporting to work out of a one-point five million workforce due to many organizations remaining closed after Diwali.
About 600 children studying in various single schools in Varaccha area of the city from Diamond worker’s families have either been forced by their family’s inability to pay the demanded fees on time to drop out or have been denied their school fees by the school authorities.
Yet, there still is light at the end of the tunnel. Hoping that the industry of diamond export could start improving after the disastrous year of 2024, figures slightly rose in December.
People are starting to get back to work, businesses are slowly reopening and migrant workers are coming back. The Diamond Trading Company (DTC) and the world’s largest diamond-mining company Alrosa have recently announced a 10% cut in prices that can foster demand once markets stabilise after the holiday period.
However, the leader in the industry still apprehensive. The representative of the Indian Diamond Institute, Dinesh Navadia said that there is not much trading has increased in the global markets. But there is optimism accompanied with some fear. In an interview with Govindbhai Dholakia, a diamond veteran in the diamond trade factory owners and workers will also be rewarded for their patience and perseverance.
On the other hand, the Surat Diamond Bourse (SDB), which is one of the largest office building complexes specifically for diamond business , has been successfully selling most of its offices . But only a few companies have shifted this way because of the existing market situation. Mahesh Shah of SDB is optimistic that as the industry becomes more settled, more companies will be established at the location.
At the moment, diamond industry in Surat is struggling waiting for the time when it will rise again.
