Surat: For artisans who’ve depended on diamonds for their livelihoods, this recession has been one of the worst they’ve ever seen, showing no signs of fading. An estimated 8 lakh diamond artisans are now worried about the future of their livelihoods, as the diamond grinding units have severely curtailed production or are yet to open after the Diwali vacation.
According to Surat Diamond Association President Jagdish Khunt, only about 60% of the 4,000-odd diamond grinding units are operational in Surat, while many artisans are yet to arrive in the city after their annual Diwali vacations.
Those who are currently employed in the units say they are now earning just half of what they once earned- ₹15,000-17,000 as against the ₹25,000-30,000 they earned earlier.
For diamond artisans, processing lab-grown diamonds earns them just 60% of what they did for mined diamonds, even as work has started to dry up, as diamond units find it increasingly difficult to survive with thinner margins.
Kalpeshbhai, a diamond artisan based in Surat’s diamond hub of Varachha, says it has become very difficult to run a household, given that inflation is increasing and incomes have been decreasing. Though lab grown diamonds have a higher demand, the income generated from is no where near to that of mined diamonds. Arunbhai, his colleague, agrees.
The demand for mined diamonds, which are traditionally preferred by the diamond units, are increasingly being replaced by much cheaper lab-grown diamonds, and customers aren’t complaining.
Slowdown in demand from China and Hong Kong, along with the crushing tariffs on diamonds imposed by the US government, have had a cascading effect on the industry, which supplies nearly 90% of the world’s polished diamonds.
