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The diamond industry of Surat, one of the major sources of foreign revenue and livelihood for millions, has hit a rough patch. A number of polishing units are in the grip of recession, with the fear of closure looming large for some.
A slowdown in overseas demand and stagnant rates of polished diamonds as against the growing cost of rough stones is affecting the diamond industry.
"The overseas demand is very low and there is no increase in the prices of polished diamonds if you compare them with (the increased rates of) rough diamonds since 2014," Surat Diamond Association president Dinesh Navadia told PTI.
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Navadia termed the downturn as "unprecedented".
"This happens quite a time, but after three or four months, the situation usually improves. This time, the crisis has lasted for a long time," he said, adding that rumours are only worsening the situation.
While Godhani Gems, a diamond unit with 1,500 workers, has shut shop, some 25 units have gone bankrupt, he said.
On the plight of diamond workers, Navadia said it's difficult for unskilled or semi-skilled workers to find jobs in a slowdown.
Aniruddh Lidbide couldn't agree more.
"There is very less demand (of polished diamonds) from China, South-East Asia, the Gulf, Europe and the US. Because of that, a lot of inventories are still lying with diamond industries," said Lidbide.
"Prices of roughs (rough stones), which are the raw material for the cut and polished diamonds, have gone up to 65-70 per cent in three years. Corresponding to that, the polished diamonds prices have not gone up. It's stagnant so that the profit margin has become very thin," said Lidbide.
Besides, some of the diamond industry owners have diverted money to other businesses, which has also hurt, he said.
