The US sanctions stopped India’s diamond exporters from importing rough diamonds from Alrosa. This has led to a crisis in Surat’s diamond polishing industry
The US Treasury had imposed sanctions on Alrosa on April 8, thereby cutting off about 30% of the world’s supply of rough diamonds. The sanctions stopped India’s diamond exporters from importing rough diamonds from Alrosa. This has led to a crisis in Surat’s diamond polishing industry.
“The units have been reducing working hours from 12 to eight and had given two days off to workers every week. They thought that the supply side will improve if the government intervenes. But with the US expanding sanctions, they have now asked the workers to go on leave for 15 days, beginning May 16,” Ramesh Zilariya, President, Diamond Workers Union, Gujarat, told ET. “During this period, the workers will not get any wages. We fear that subsequently this will result in job losses.”
The Diamond Workers Union Gujarat’s Surat unit had on May 4 sent a memorandum to Gujarat chief minister Bhupendra Patel seeking financial aid for the diamond workers. The memorandum said there were more than two million workers employed in the diamond factories in Surat, Navsari, Ahmedabad, Bhavnagar, Botad and Bhavnagar
The diamond units in Surat employ around a million people. Vipul Shah, Vice-Chairman, Gem and Jewellery Export Promotion Council (GJEPC), said: “India’s diamond industry is 100% import-dependent and any shortage of roughs has a severe impact on manufacturing activity and employment in the sector. This will also have a huge impact on total gem and jewellery exports.”
More than 30% of rough diamonds imported from Alrosa directly come to Surat for cutting and polishing. Besides, Alrosa exports rough diamonds to other countries worldwide which finally come to Surat for polishing through different routes.
The Diamond Trading Corporation at Antwerp also procures diamonds from mines worldwide and sells rough diamonds to Indian polishers. “Due to supply constraint many factory owners have reduced their production,” said Dinesh Navadiya, Region Chairman, GJEPC, Gujarat.
The Diamond Workers Union Gujarat’s Surat unit had on May 4 sent a memorandum to Gujarat chief minister Bhupendra Patel seeking financial aid for the diamond workers. The memorandum said there were more than two million workers employed in the diamond factories in Surat, Navsari, Ahmedabad, Bhavnagar, Botad and Bhavnagar.
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