India’s diamond city losing its sheen
Surat, often referred to as India’s diamond city, has gained recognition for its prominent role in processing a significant percentage of the world’s diamonds, estimated to be around 80-90%. However, in recent times, the city has been in the spotlight for unfortunate reasons. Over the past few weeks, Surat has witnessed a series of distressing incidents, with nine cases of suicide reported among workers engaged in the diamond industry. These incidents reflect the challenging circumstances currently faced by the once-thriving trade.
The diamond industry plays a crucial role in Surat’s economy, providing employment opportunities and contributing to the city’s growth. However, various factors can impact the industry’s well-being, leading to adverse effects on workers’ livelihoods and overall mental well-being.
The reasons behind the reported suicides can be multifaceted and influenced by several factors. These may include economic fluctuations, market dynamics, financial pressures, job insecurity, and personal challenges faced by individuals within the industry. The immense pressure and stress associated with the profession, combined with socio-economic circumstances, can have severe consequences on mental health.
The reported cases of suicide highlight the need for increased awareness, support, and mental health initiatives within the diamond industry and the wider community. It is crucial for employers, trade organizations, and the government to prioritize the well-being of workers and provide them with necessary resources, including mental health counseling, financial guidance, and skill development programs.
Additionally, collaborative efforts among stakeholders, including industry associations, mental health professionals, and community organizations, can help create a supportive environment and implement interventions to address the underlying causes of distress and promote well-being.
It is important to remember that these cases are tragic and complex, and addressing the challenges faced by the diamond industry workers requires a comprehensive approach involving multiple stakeholders. By acknowledging the issues and proactively working towards solutions, Surat can strive to create a supportive environment for its workers and ensure the sustainability and growth of the diamond industry in the long run.
Surat’s diamond industry, which comprises around 5,000 cutting and polishing factories, is a major source of employment for over a million people, with a significant percentage being migrants from Gujarat’s Saurashtra region. The incident has sent shockwaves throughout the community, as it reflects the vulnerability and challenges faced by workers in the industry.
Financial distress, such as sudden job loss, can have severe consequences on individuals and their families, leading to immense pressure, anxiety, and even desperation. The incident underscores the need for comprehensive support mechanisms, both from within the industry and through government initiatives, to address the financial well-being and mental health of workers.
In response to such distressing events, it is crucial for industry stakeholders, trade unions, and government bodies to come together and develop proactive measures to support workers during difficult times. This may include financial counseling, skill development programs, job placement assistance, and mental health support services.
Additionally, creating an inclusive work environment that promotes fair wages, job security, and avenues for career growth can help mitigate some of the challenges faced by diamond industry workers. Encouraging dialogue and fostering open communication channels can allow workers to voice their concerns and seek assistance when needed.
Beyond immediate support, long-term initiatives to diversify the economy, promote entrepreneurship, and provide alternative employment opportunities can help reduce dependence on a single industry and create a more resilient workforce.
The incident serves as a stark reminder of the importance of addressing financial distress, mental health, and creating a supportive ecosystem for workers in industries that are prone to economic fluctuations. By taking collective action, Surat can work towards safeguarding the well-being of its workers and fostering a sustainable and inclusive diamond industry.
The situation described by the Surat Diamond Workers’ Union regarding the loss of jobs and the challenging conditions faced by employed workers is disheartening. The impact of the economic downturn and changes within the diamond industry is evident in the reduction of work hours, modified work schedules, and the implementation of unpaid summer breaks.
The shift from a time when the industry operated throughout the year, with minimal breaks, to the current scenario reflects the adverse circumstances and reduced demand affecting the sector. The imposition of shorter work weeks and unpaid breaks can have significant financial implications for workers, exacerbating their already challenging situations.
These developments emphasize the need for support mechanisms and interventions to address the plight of diamond workers. It is essential for industry stakeholders, trade unions, and government bodies to come together and explore strategies that can protect workers’ livelihoods and ensure their well-being.
Efforts can be made to facilitate skill development programs that equip workers with additional expertise to enhance their employability and open avenues in other sectors. Government initiatives, such as providing financial assistance and training, can help workers transition to alternative industries or support them in exploring entrepreneurial opportunities.
Collaboration between industry leaders, trade unions, and the government is vital to devise policies that ensure fair wages, job security, and decent working conditions for diamond workers. Additionally, measures to encourage diversity within the economy, promote sustainable development, and attract investment can help create a more resilient and inclusive job market.
It is crucial to prioritize the welfare of diamond workers, particularly those affected by job losses and reduced work hours. By providing support, training, and avenues for alternative employment, Surat can work towards mitigating the challenges faced by the industry’s workforce and fostering a more stable and prosperous environment for its workers.The reduced weekly work hours and subsequent impact on salaries have had significant repercussions for diamond workers, resulting in lower earnings of around 30-35% compared to previous levels. This decline in income can create financial hardships for workers and their families, further exacerbating the challenges they face.
The reasons behind the industry’s current situation can be attributed to various factors, including the ongoing Russia-Ukraine war and economic instability in European and other Western countries. These global events have had a direct impact on India’s gems and jewellery exports, leading to a decline from Rs 1.82 trillion in FY22 to Rs 1.76 trillion in FY23. Unfortunately, the prospects for improvement in the near term do not appear promising either, as the industry has experienced a contraction of approximately 30-35% in business over the past three months.
The declining demand for gems and jewellery in international markets, coupled with geopolitical uncertainties and economic instability, has contributed to the industry’s challenges. These factors have disrupted the supply chains, reduced orders, and affected the overall viability of the industry.
In such circumstances, it is crucial for industry stakeholders, trade unions, and government bodies to collaborate and devise strategies to address the prevailing challenges. Exploring new markets, diversifying product offerings, and adopting innovative business models can help mitigate the impact of declining demand and stabilize the industry.
Government support, including financial assistance and policy interventions, can play a significant role in mitigating the adverse effects of the current situation. Providing access to credit facilities, facilitating technology upgradation, and offering training programs can enhance the competitiveness of the industry and support its recovery.
Efforts to promote the gems and jewellery sector domestically, diversify export destinations, and attract investment can also contribute to its revival. Additionally, measures to strengthen the overall economy, enhance the ease of doing business, and improve infrastructure can create a favourable industry growth environment.
While the challenges faced by the diamond industry are significant, concerted efforts from all stakeholders can help alleviate the impact on workers and support the sector’s recovery.
By fostering resilience, promoting innovation, and facilitating necessary support, Surat can work towards revitalizing the industry and improving the livelihoods of its workforce.The varying perspectives between industry associations and trade unions regarding the current situation in the diamond industry highlight the complexity of the issue.
Vijay Mangukiya, the regional chairman of the Gem and Jewellery Export Promotion Council (GJEPC), justifies the reduction in work hours and the prolonged summer break as measures taken to prevent mass unemployment. According to Mangukiya, there has been no significant price drop in the diamond market. He also suggests that the growing popularity of lab-grown diamonds or chemical vapor deposition (CVD) diamonds has contributed to market stability and is helping sustain domestic market demand.
These perspectives indicate that there may be differing opinions on the severity of the challenges faced by the industry. Industry associations may emphasize certain aspects, such as market stability and alternative diamond sources, to provide a more positive outlook. On the other hand, trade unions may focus on the negative impact of reduced work hours and the potential financial strain workers face.
It is important to consider multiple viewpoints and engage in dialogue between industry stakeholders, trade unions, and the government to fully understand the situation and work towards finding appropriate solutions. Collaboration and cooperation among all parties involved will be crucial in addressing the challenges faced by the diamond industry and supporting the welfare of its workforce.
Assessing the overall state of the diamond industry requires a comprehensive understanding of market dynamics, industry trends, and workers’ experiences on the ground. It is necessary to find a balance that ensures the sustainability of the industry while also safeguarding the livelihoods of the workers who depend on it.
By promoting open communication and cooperation, Surat can strive to find common ground and develop strategies that address the concerns of all stakeholders, ensuring a more resilient and prosperous diamond industry.
The admission that exhibitions and trade fairs in the diamond industry have not met expectations in the past three months indicates the challenges faced by the sector. The ongoing Russia-Ukraine war has led to supply shortages of rough diamonds, resulting in economic instability. Additionally, increased inflation has reduced the purchasing power of consumers, impacting the demand for diamonds.
The diamond industry heavily relies on Russian rough diamonds, which constitute nearly one-third of the total raw material demand. However, the war has disrupted the smooth import process, causing difficulties and interruptions in the supply chain. According to industry sources, Russia’s total rough diamond supply has decreased to under 10%, compared to over 35% before the conflict.
Reducing the supply of Russian rough diamonds has significant implications for the industry’s operations, affecting both the availability and cost of raw materials. The disruption in supply chains can lead to increased prices and reduced profitability for diamond manufacturers and exporters.
The economic instability caused by the war and the subsequent inflationary pressures have also impacted consumer purchasing power. With reduced disposable income, consumers may prioritize essential expenses over luxury goods like diamonds, further dampening the demand for diamond products.
The combination of supply shortages, economic instability, and reduced consumer demand presents significant challenges for the diamond industry. It highlights the need for industry stakeholders, trade unions, and government bodies to collaborate and devise strategies to address these issues.
Efforts to diversify the sources of raw materials, explore alternative markets, and enhance domestic consumption can help mitigate the impact of supply shortages and economic instability. Strengthening trade relations and exploring new partnerships with diamond-producing countries can contribute to ensuring a steady supply of rough diamonds.
Furthermore, measures to stabilize the economy, control inflation, and enhance consumer confidence are crucial in reviving demand for diamond products. Government support, including financial assistance and policy interventions, can play a vital role in supporting the industry’s recovery and addressing the challenges caused by the ongoing war and economic uncertainties.
By recognizing the issues and working collectively, Surat can strive to mitigate the impact of supply shortages, economic instability, and reduced consumer demand, fostering a more stable and sustainable diamond industry.The concerns raised by the unions regarding job cuts and reduced pay in the diamond industry highlight a disconnect between the industry’s profitability and the welfare of workers. Bhavesh Tank, the Surat zone president of the Diamond Workers’ Union, asserts that the Surat Diamond Association prioritizes profitability over the well-being of workers.
It is important to note that industries often face complex challenges that impact their operations and financial viability. While the industry may have experienced a post-Covid boom in business and generated significant profits, various factors, including global market dynamics and supply chain disruptions, can influence the decisions made by industry associations.
From the perspective of the unions, salary cuts and job losses have severe implications for the livelihoods of diamond workers. Such circumstances may prompt workers to seek alternative livelihood options, including agriculture and other manual jobs.
It is essential for industry associations, trade unions, and the government to engage in meaningful dialogue and collaboration to address these concerns. Balancing the profitability of the industry with the well-being of workers is crucial for creating a sustainable and equitable work environment.
Efforts can be made to explore measures that ensure fair wages, job security, and the overall welfare of diamond workers. This may involve discussions on industry standards, employment contracts, and social protection schemes that safeguard the rights and livelihoods of workers.
Additionally, fostering transparency and effective communication channels between industry associations and trade unions can help bridge the gap and address the issues faced by workers. By actively involving workers in decision-making processes and valuing their contributions, the industry can create a more inclusive and harmonious work environment.
Collaborative efforts among all stakeholders are necessary to find a balance between industry profitability and worker welfare. By working together, Surat can strive to create an industry that not only thrives economically but also upholds the rights and well-being of its workforce.Tank’s statement sheds light on the alleged unfair practices and unfavorable conditions faced by workers in the diamond industry.
He highlights that employers often impose rules that are disadvantageous to workers, such as deducting a certain amount from their wages under the guise of professional tax. He questions the rationale behind imposing professional tax on non-contractual workers and suggests that employers may not fulfill their responsibilities towards workers.
Such practices and perceptions contribute to the ongoing verbal disputes between industry representatives and trade unions, exacerbating the challenges faced by workers in the diamond industry.
The situation becomes particularly distressing when considering the families of the deceased workers in Surat. Their experiences reflect the harsh reality that despite the glittering allure of diamonds, the hardships faced by workers and their families can have devastating consequences. It emphasizes the urgent need to address the systemic issues within the industry and ensure the well-being of workers.
Resolving these issues requires open and constructive dialogue between industry associations, trade unions, and the government. By actively listening to workers’ concerns and taking steps to rectify unfair practices, the industry can work towards creating a more equitable and sustainable work environment.
Additionally, implementing robust labor regulations, ensuring compliance with labor laws, and promoting social protection measures can help safeguard the rights and welfare of workers. Providing access to legal recourse and support services can also empower workers to address grievances and advocate for their rights.
Ultimately, the challenges faced by workers in the diamond industry require concerted efforts from all stakeholders to foster a culture of fairness, transparency, and respect. By addressing the concerns raised by workers and their representatives, Surat can strive to create an industry where workers’ dignity and well-being are prioritized, transforming the diamonds from mere dust to symbols of prosperity and justice.
