While the Surat Diamond Workers’ Union claims that more than 20,000 workers in the industry have lost their jobs and those who are still employed are in dire straits, the industry association claims the situation isn’t as bad as is being made out to be, as per a report in Financial Express.
Vijay Mangukiya, regional chairman of the Gem and Jewellery Export Promotion Council (GJEPC), justifies the reduction in work hours and the prolonged summer break as a way of averting large-scale unemployment. Mangukiya says there has been no significant price drop in the diamond market. What is also holding up the domestic market demand is the growing popularity of lab-grown diamonds or chemical vapour deposition (CVD) diamonds which have provided much-needed stability to the market.
He, however, admits that in the last three months, the exhibitions and trade fairs have not lived up to expectations. The Russia-Ukraine war has also resulted in supply shortages for the rough diamonds in the industry and caused economic instability. Further, increased inflation has reduced the purchasing power of the consumer.
NanuBhai Vekariya, President of the Surat Diamond Association, dismissed all the claims of workers losing their jobs. Manufacturers, in fact, are facing a shortage of workers, he claims. The domestic market, he says, is doing very well and the buying in the coming festival season will revive the industry.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
