Surat’s diamond sector is facing a significant downturn, causing financial hardship for many workers. Amid this crisis, a generous diamantaire from the city has stepped forward to help struggling families by paying their children’s school fees. This act of kindness has sparked calls for more such initiatives within the industry.
Impact on Surat’s Diamond Sector
Surat is known for cutting and polishing about 90% of the world’s rough diamonds, employing around 10 lakh workers in over 2,500 units. However, due to challenges like the ongoing Russia-Ukraine war and reduced demand from China, a major market, the industry is facing an oversupply crisis. As a result, around 50,000 diamond workers have lost their jobs this year, and those still employed have seen their salaries cut by approximately 30%, according to Bhavesh Tank, Vice President of the Surat Diamond Workers Union.
Financial Struggles Lead to Distress
The financial difficulties have left many workers in a state of despair. A helpline set up for distressed workers has received numerous calls, with some workers even contemplating self-harm due to the financial pressure. Many callers have requested assistance in paying for their children’s education.
Diamantaire Lalji Patel Steps In
Lalji Patel, Chairman of Surat-based Dharmanandan Diamonds, has responded to this crisis by offering financial support to the families of affected workers. On Sunday, he distributed cheques worth INR 15,000 each to 40 students to help cover their school and college fees. Patel emphasized that the slowdown in the diamond industry has created a depressing atmosphere, affecting both merchants and workers. His company decided to step in to ensure that the education of the children of these workers is not disrupted.
Calls for More Support from Industry
Patel has urged other diamond companies to follow Dharmanandan Diamonds’ example and provide similar support. He believes that if more companies contribute, it will help alleviate the financial struggles faced by workers and create a positive environment within the industry.
Worsening Industry Conditions
The situation in Surat’s diamond industry has only worsened over the last six months, marking the first time in five decades that the industry has faced a recession for two consecutive years. Recently, Surat-based Kiran Gems announced a 10-day pause in production, offering an extended vacation to its workers. Many other units have reduced their operating days to 4-5 days a week due to an imbalance in inventory.
The financial assistance provided by Lalji Patel and Dharmanandan Diamonds has brought some relief to struggling diamond workers in Surat. Industry leaders are hopeful that more companies will step forward with similar initiatives, helping to create a more positive atmosphere and support the workers during this challenging time.
