Diamond Industry Crisis In Surat: Workers Hit Hard By Job Cuts

The Surat diamond industry, India’s largest Diamond Industry hub, is grappling with a severe economic crisis that has taken a heavy toll on its workforce. The crisis has been exacerbated by global conflicts and declining demand for polished diamonds. Since its launch on July 15, a suicide helpline established by the Diamond Workers Union Gujarat (DWUG) has received over 1,600 calls, averaging more than 50 calls a day. A significant portion of these calls come from workers who have lost their jobs.

The Surat diamond industry, which supports more than one million livelihoods, has been hit hard by international events, including the Russia-Ukraine war and the ongoing conflict between Israel and Palestine. The impact on the industry has been devastating, with over 62 diamond polishers reported to have died by suicide in the past 16 months due to job losses and salary cuts.

One of the distressing cases highlighted is that of Jaysukh Koradiya, a 52-year-old worker who lost his job when his factory shut down two months ago. Koradiya, who had accumulated debt of ₹3.2 lakh for his daughter’s wedding, sought help from the helpline after struggling to make ends meet. Similarly, Rajesh Savaliya, who was physically challenged, lost his managerial job and later a lower-paying job, leaving him unable to pay his children’s school fees.

Another case involved Sanjay Patel, a 40-year-old who, after losing his job, faced severe financial distress. Patel’s house was seized by the bank, and he had to move into a rented home. Patel had accumulated over ₹5 lakh in debt, and his dire situation led him to seek help from the DWUG.

The crisis has also led to tragic outcomes. Just two days after the helpline launched, diamond polisher Sagar Makwana, 21, died by suicide following a significant salary cut. His family has since expressed their grief and the impact of the economic downturn on their lives.

In response to the crisis, the DWUG has been actively involved in providing support. Over 150 calls to the helpline were from parents struggling to pay school fees. Through efforts by DWUG, prominent businessman Laljibhai Patel donated over ₹4 lakh to help 35 children with their educational expenses.

The industry’s struggles are also reflected in broader market trends. Major diamond manufacturers, like De Beers, have reported reductions in rough diamond production due to high inventory levels. Kiran Gems, one of the largest manufacturers, announced a 10-day production halt to manage unsold stock.

Efforts to mitigate the impact include appeals to factory owners to avoid layoffs and explore alternative solutions such as reduced working hours. The US sanctions on Russian diamonds and the G7 ban have further strained the industry, which had previously relied heavily on Russian diamonds.

However, recent changes in the Union Budget 2024-25 offer some relief. The government’s decision to exempt the diamond sector from the 2 percent equalisation levy on rough diamond sales could help ease the financial burden on the industry. This exemption is expected to facilitate more direct trading between foreign mining companies and Indian diamond manufacturers.

The DWUG continues to support affected workers, with ten workers recently reinstated in their factories due to union intervention. The situation remains dire, but ongoing efforts aim to provide much-needed relief to the struggling diamond workers of Surat.