Diamond market caught in biggest recession: 17 lakh jewellers in crisis, 2 lakh lost their jobs, 45 committed suicide in 18 months

Mrigank Patel, Jalpesh Kalena Surat, which is known as the Diamond City, is facing the worst times. The diamond market has been caught in the biggest recession in its 50-year history due to the continuous decline in the demand for diamonds in the international markets. 17 lakh employees are doing diamond polished and cutting work. In Surat alone, families of 11 lakh employees are leaning on diamonds, but due to the never-seen-before recession, there is a big crisis of employment on all the employees. 90 per cent of the factories that run two to four bells i.e. 1000 factories have been closed and two lakh people are losing their jobs. According to the Diamond Workers' Union, 45 jewellers have committed suicide in Surat alone in a year due to 20 to 50 per cent drop in their salaries. So far, the union's helpline has received calls for help from more than 3000 employees. According to gjepc (Gems and Jewellery Export Promotion Council) data, diamonds worth Rs 1.80 lakh crore were exported in 2022. Diamonds worth Rs 1.43 lakh crore were exported in 2023. By October 2024, it had reached Rs 1.02 lakh crore. Which is expected to reach Rs 1.15 lakh crore by the end of the year 2024. IDI Chairman Dinesh Navadiya said that when the diamond industry, which pays taxes of lakhs of rupees to the government, is in trouble, the government should announce a scheme for the jewelers. Various organisations of the industry should also help the needy gemstones. The salaries of the workers of the lower cut have been reduced by 30 to 40 percent. In Galaxy Planning, the artisan was paid a salary of 30 to 40 thousand, which is currently around 20 thousand. Similarly, the salary of jewelers working in sarin machines, buture machines has also been cut by 50 to 30 percent. Bhavesh Tank, vice-president of the Diamond Workers Union, said that the union receives complaints, including a cut in salary, being laid off from work. The artisans say that if the salary is cut in this way, then our salary will be less than half. On the other hand, inflation is rising. D-Bears, which is trading rough, reduced the price of rough diamonds by 10 to 15 percent. Now Russian company Alrosa has also reduced the prices of rough diamonds by up to 10 percent. In two years, the prices of finished diamonds had come down, but the prices of rough diamonds did not come down, due to which the diamond traders had to suffer. In 2008, there was a recession for 7 to 8 months, but this recession is very terrible. Markets have not opened in China, on the other hand there is a recession due to the state of war. Natural diamond prices have been going down drastically. Production in factories has also dropped by 50 per cent. In 2008, the recession lasted only 7 to 8 months. But this is the most downturn in my career. > Lalji Patel, Vice Chairman, Surat Diamond Bourse Seeing such a recession for the first time in a career of 60 years, a good time will come I have been associated with the diamond industry for the last 60 years. For the first time in 60 years, we have seen such a recession. Right now the situation is bad, but i hope the time to come will be good. The government can also provide financial assistance to the jewellers but the jewellers are not registered. The industry will run at full speed whenever there is a boom in the diamond industry. > Govind Dholakia, Chairman, Surat Diamond Bourse