Diamond traders in Surat fear job losses even as Russia Co assures supply

The Russia-Ukraine conflict may lead to job losses in Surat, India’s diamond-cutting and polishing hub, because the global sanctions on Moscow could affect sourcing of rough diamonds for processing. The European Union, US, UK and their allies have excluded Russia from the Swift international payment system.

Diamond exporters said if the payment issue was not sorted out immediately for rough diamonds sourced from Russia’s partially state-owned mining company Alrosa, there would be a scarcity in their supply, forcing the cut and polishing units in Surat to scale down production and manpower. For now, Alrosa has assured supplies and informed the industry that its settlements with foreign partners sing currencies like the dollar and euro had not been affected, but the local units are unsure how long it would continue.

The diamond industry in Surat employs nearly 800,000 people and is said to have processed 14 out every 15 diamonds available in the world.

“India’s diamond industry is 100% import-dependent, and any shortage in rough diamond would have a severe impact on manufacturing activity and employment in the sector,” Colin Shah, chairman of the Gem & Jewellery Export Promotion Council, told ET. “This will also have a huge impact on total gem & jewellery exports from the country as cut and polished diamonds constitute a significant portion of these exports.”

Courtesy: Economic Times