Scores of diamond workers in Surat took to the streets, with some launching an indefinite strike to demand a relief package and a pay raise amid the ongoing slowdown in the sector. The situation has resulted in salary cuts of up to 50%.
The diamond workers staged a peaceful rally from Katargam to Kapodara Hira Baug, covering a distance of around 5 km. Their demands include the establishment of a welfare board, an increase in wages, and support for the families of workers who have tragically taken their own lives strained by financial hardship. The protesters vowed to continue their strike until their requests are addressed.
Surat, a key hub in the global diamond industry, is home to around 10 lakh workers who process about 90% of the world’s rough diamonds across more than 2,500 units.
India’s diamond industry has been grappling with uncertainty, with at least 20-25% of diamond polishing firms shutting down last year. Diamond merchants had an extended vacation following the downturn exacerbated by the Russia-Ukraine war and sanctions on Russian diamonds. According to data published in 2004, the industry has faced a 35% drop in diamond prices over the past two and a half years, and the total trade value has halved.
India’s gem and jewellery export figures showed the decline, with shipments dropping 15% to $32.02 billion in 2023–2024. At $15.97 billion, polished diamond exports fell 27.58%. Rough diamond imports decreased 17.85%. India’s gem and jewellery exports fell 9.09% between April and October 2023, while imports dropped by 7.55% during the same period. Naturally, the impact has left Surat, India’s diamond capital, reeling.
Further, data reveals that about 35-40% of diamond companies remained closed post-Diwali, and 600 children of diamond workers have dropped out of school. The Surat Diamond Bourse, which sold 99% of its office spaces last year, has seen slow movement from firms, with only 200 of the 4,500 firms making the shift.
It is obvious that a concentrated effort is required to revitalise the sector and safeguard those who depend on it for their lives, as many businesses remain closed and families are struggling. The circumstances in Surat serve as a sobering reminder of the difficulties facing the Indian diamond sector and the pressing need for industry reform and government engagement to ensure a more secure future.
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