Surat’s diamond industry workers say no to Diwali holidays as demand revives

Traditionally, workers in Surat get a fortnight to a month-long holiday for Diwali, said industry executives.

Nearly 650,000 workers in Surat, the world’s largest diamond cutting and polishing hub, have decided not to take holiday for Diwali so that they can fulfil the overseas orders for Christmas and New Year on time as demand has begun to revive after the complete halt forced by Covid-19.

Traditionally, workers in Surat get a fortnight to a month-long holiday for Diwali, said industry executives.

“We have already got three to four months’ vacation as the units were closed due to the outbreak of Covid. The business came to a halt across the globe. Now that the business is gradually recovering, we want to work during Diwali so that order commitments can be met on time,” Bhavesh Tank, vice president of Diamond Workers Union, Gujarat, told ET.

Tank said there have been incidents of suicide committed by diamond workers in Surat due to financial crisis and job loss. “We do not want this number to go up. If they work, then such incidents will come down,” he said.

The union has also asked diamond workers in smaller centres of Saurashtra, Bhavnagar and Amreli to work during Diwali.

Of the 7,000 diamond manufacturing units in Surat, about 5,000 small, medium and large units are operational. Following the stringent government guidelines, the factories have been working at 70% capacity. Cut and polished diamonds are a major contributor to India’s overall gems and jewellery exports, which amounted to $29 billion in 2019-20.

Nanubhai Vekaria, the newly elected president of Surat Diamond Association, said the workers want to work during Diwali as they are keen to see the diamond business back to pre-Covid level soon. “Orders have started picking up and factories are trying to maintain social distancing norms for the workers,” he said.

Sanjay Shah, convener of Diamond Panel Committee, Gem & Jewellery Export Promotion Council (GJEPC), said India’s overall exports are currently pegged at 50% of FY20. “We are optimistic about the third and fourth quarters as orders have come in from the US, and we expect demand from China to pick up from September onwards. Things are looking better as we expect an additional 10-15% boost in orders,” he said. “Consumers now have disposable income, which was earlier being spent on travelling and vacations – some of it is being diverted towards jewellery.”

Courtesy: Economic Times