Farmers lock horns with industry over jewellery park in Surat

The ambitious jewellery park proposal of the Surat diamond cutting and polishing industry has run into rough weather with the farmers of Ichhapore opposition the very idea of setting up the park. A big question mark now looms over the fate of the park at Ichhapore village in the Hazira industrial area.

The main grouse of the farmers against the proposed jewellery park, which would have been the biggest in Asia is that the park would rob the village of its open space and will not provide any employment to the local youths. The Gujarat Government had last month sanctioned 22 lakh square metres of land at Rs. 225 per square metre to the Gujarat Hira Bourse.

Buoyed by their success in stone walling the move of the Gujarat Government to set up an ultra modern jail on the same land in 2001, the Ichhapore Khedut Samaj has already shot off representations against the jewellery park to the prime minister and the chief minister.

"Our worries are genuine. No employment came our way when we gave up our land to the Gujarat Industrial Development Corporation (GIDC) 18 years ago", says Janakbhai Patel, the convenor of the Ichhapore farmers body.

Janakbhai points to the vast stretch of land stating that in the past 18 years the land had remained bereft of any use. "Since the past two decades we have been losing land to big corporates that have cropped up in this belt. At present, there is hardly any left for us farmers to cultivate. If adequate employment opportunities are not provided, it will become tough for nearly 10,000 people of Ichhapore to earn their livelihood", Janakbhai says. He adds that the CM's Office has agreed to look into the matter.

"We will not be fooled again and get lured into agreements like in the past", says Champakbhai Patel, the retired principal of Ichhapore School. "We have sacrificed a lot for the country. Please do not ask for more sacrifice", he says.

The villagers also fear that once the jewellery park becomes operational, many other ancillary and support units will try to acquire land near the park. "There will be all sort of problems. Please allow us to live peacefully" says Anurag Patel, a young farmer.

At present, the farmers cultivate tuwer, jowar, cauliflower cabbage, roses and millet. According to Janakbhai, Icchapore is bursting at its seams and the village requires land for its own development. "We want the land for our own development. The government should give us the land", he says.

In 2001, the then minister of prisons, Jashpal Singh had to beat a hasty retreat and scrap the plan for setting up an ultra modern jail in Ichhapore after the farmers launched an intensive agitation.

With the farmers not being in any mood to relent, the Surat Diamond Association (SDA), the apex body of the diamond cutting and polishing industry is in a state of apprehension. "We do not know how to reply to the people who come here with inquiries", a SDA official says.

About 135 diamond merchants in and around the city have confirmed participation in the park by paying Rs 5 lakh each as registration fee. This shows the seriousness that the diamond cutting and polishing industry attach to the jewellery park.

SDA president Nanubhai Patel, himself a veteran of many an agitation, however, talks tough. "There is no question of going back. The Gujarat government has allotted us the land. We cannot retract now", he says in a terse tone.

Former SDA vice president Dineshbhai Navadia assures of giving preference to the locals in the employment. "The diamond industry requires only skilled labourers. If there are such people in the village, they will be given preference", he says.

Besides employment, he also lists out the benefits that Ichhapore village would get like good roads, power and other facilities, once park is set up.

However, the captains of the diamond trade and industry feel that the land price was too high. Following several rounds of meetings and hectic lobbying by the diamond industry, the rates were scaled down to more than half to just Rs. 250 per square metre. But the diamond industry thinks that even that is very high.

According to Nanavati, out of the total 100 rough diamonds cut and polished in Surat, 99 are exported. These diamonds which are cut and polished in Surat are used in diamond studded jewellery manufactured in other foreign countries. "The only need is that of skilled workers and infrastructural facilities", says Nanavati.

The industry point out that a jewellery park in Surat would give a major fillip to the diamond cutting and polishing industry and in a phased manner, employment can be given to nearly half a million people.

Till date no serious steps have been taken for opting for further value addition by manufacturing of jewellery. On the other hand, the jewellery market is growing at a phenomenal rate in the world.

As compared to the diamond industry, the margins are much higher in the jewellery industry. The world production of jewellery stands at $28 billion and the sales proceeds are to the tune of $56 billion. "From these figures you can understand the profit margins involved in the jewellery trade", a leading diamond exporter said.

Surat-based exporters agree that just diamond cutting and polishing will just not do. The need of the hour was to opt for value addition. "Even in India several states are desperately trying to woo the diamond cutting and polishing industry. States like Uttranchal and Chattisgharh have started working out attractive schemes to lure the diamond units from Surat", Nanavati says.