Around 30 per cent diamond processing units based in Surat have resumed work from Monday after an extended vacation that started on October 20, industry officials said on Wednesday.
The units had this year extended the Diwali vacation to 50 days against the normal 20 days due to slack demand for finished diamonds.
Surat is India’s hub for diamond processing industry and generates annual revenue of about Rs 60,000 crore.
“Around 70 per cent of the units have still not resumed work as Christmas demand for diamonds is sharply lower this year. Mumbai terror attacks have also impacted the trade,” said C P Vanani, president, Surat Diamond Association.
He added the remaining units are likely to resume work by the end of this month.
Around 30 per cent of the total annual trades take place during November-December as demand opens up from the US and European countries due to Christmas. The US and European countries are the two largest buyers for gems polished in India. Export demand for finished diamonds is negligible this year due to global financial crunch.
