AHMEDABAD: No less than 20-25% of Surat’s diamond business that paused operations in late October for the Diwali break are but to reopen as a result of persevering with slowdown within the business exacerbated by Russia’s full-scale invasion of Ukraine in February 2022 and the sanctions on Russian diamonds that adopted, individuals conversant in the matter mentioned.
The downturn is mirrored within the statistics of the Gems and Jewelry Exports Promotion Council of India (GJEPC) (Vijayanand Gupta/HT FILE Picture)
Town’s diamond business often takes a three-week trip. This time, Lalji Patel, chairman of Dharmanandan Diamonds Pvt Ltd mentioned there was an prolonged trip as a result of ongoing downturn. “While businesses were to reopen in the second week of November post-Diwali, they only started resuming from December 1,” mentioned Patel.
Patel added that about 20% of diamond sprucing corporations are but to reopen, preferring to attend out the slowdown. “The industry has been struggling for the past two and a half years, with diamond prices falling by at least 35%. The total value of trade for diamond companies would have halved in this period,” Patel added.
Govindbhai Dholakia, BJP Rajya Sabha MP and chairman of Shree Ram Krishna (SRK) Exports, who has been within the diamond business for six a long time, mentioned this was the longest recession that he had seen in his profession.
In a video message to business leaders and diamond staff, Dholakia expressed hope that it could finish quickly. “Everyone has been very patient – both factory owners and diamond workers. We should maintain this patience and face the challenge. I hope we will soon see an upswing,” he mentioned.
The downturn is mirrored within the statistics of the Gems and Jewelry Exports Promotion Council of India (GJEPC).
The gross exports of gems and jewelry from India declined by 15% to $32.02 billion ( ₹2.63 lakh crore) in 2023-24. Gross imports additionally fell to $22.27 billion ( ₹1.83 lakh crore) in 2023-24, a 14% drop.
Exports of minimize and polished diamonds dropped by 27.58% to $15.97 billion ( ₹1.31 lakh crore) in FY 24, whereas imports of minimize and polished diamonds noticed a pointy 46.12% improve, reaching $ 1.91 billion ( ₹15,700 crore). Imports of tough diamonds, an important uncooked materials, declined by 17.85% to $14.27 billion ( ₹1.17 lakh crore), indicating a slowdown in manufacturing exercise, based on GJEPC.
Throughout April-October this yr, the entire exports of gem and jewelry commerce in India have been $ 1,6734.07 million, a decline of 9.09% over the corresponding interval final yr. The imports touched $11,541.35 million, a decline of seven.55% over the corresponding interval final yr.
Surat’s diamond sprucing business, which processed almost 85-90% of the world’s roughs over the yr, employed over 800,000 individuals. However the previous few years have been tough for the employees as effectively.
Bhavesh Tank, vice-president of Diamond Employees Union Gujarat (DWUG) mentioned that within the final two and half years, the earnings of diamond staff have seen a pointy decline of greater than 35%.
“More than 45 diamond workers have died by suicide in the last one year. As of today, only 50% of the total workforce of 8-10 lakh diamond artisans of Surat are getting work. About 35-40% of the companies have remained shut post-Diwali vacation,” mentioned Tank, including that there have been studies that 600 youngsters of diamond staff in Surat’s Varaccha area had dropped out of faculties.
Jagdish Khunt, president of Surat Diamond Affiliation mentioned companies have been slowly re-opening and the migrant staff have been returning to work. The Diamond Buying and selling Firm (DTC) and Alrosa, two of the biggest suppliers of tough diamonds, have diminished diamond costs by about 10% in response to declining demand in key markets such because the US and China however their affect on Indian tough diamond sprucing business stays to be seen, he added.
Dinesh Navadia, a diamond baron and chairman of Indian Diamond Institute, mentioned they hadn’t noticed any indicators of a rise in demand for diamonds throughout the Christmas season.
“We don’t see much movement in global markets. The government should support diamond workers and their families with initiatives such as some relaxation in loan EMIs for government housing schemes and school fees, or providing medical benefits,” mentioned Navadia.
The disaster seems to have persuaded firms to go gradual in shifting base to the Surat Diamond Bourse (SDB), billed because the world’s largest workplace advanced.
The diamond bourse, constructed at a price of ₹3,500 crore, has already offered 99% of workplace areas to diamond merchants, producers, exporters, and importers, in addition to professionals concerned in diamond slicing and sprucing companies. However solely 200 of the 4,500 corporations had moved in thus far.
“Everybody knows the situation and what is hindering the business decisions. More will soon move into Surat Diamond Bourse,” mentioned SDB chief government officer Mahesh Shah.