This is an archive article published on May 31, 2023
Amid impending recession fears, diamond workers seek financial package from state govt
In 2008, when the diamond industry had faced recession, the Gujarat government had announced a Ratnadeep Kaushalya Vardhak Scheme where the diamond workers would be trained to develop expertise in their own work.
Amid impending recession fears, diamond workers seek financial package from state govt
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Amid signs of an impending recession-like situation, the Gujarat Diamond Workers’ Union (DWU) has made representations before the state Labour and Employment minister Balwantsinh Rajput seeking vacation salary and skill upgradation for the sector as was announced in 2008 during the global recession.
On Monday, DWU members met Minister Rajput and handed over a memorandum raising seven demands for the over five lakh diamond workers employed in the 5000-plus factories in Surat.
“Due to the recession, many diamond polishers have become jobless that has led to suicides among diamond workers. The state government should plan to help these workers through a financial package with schemes like Ratnadeep Kaushalya Vardhak Scheme (skill upgradation), which was once implemented in 2008. Labour laws should be implemented and diamond factories should be covered under the Factory Act. The professional tax of the Surat Municipal Corporation should also be abolished,” the memorandum reads.
According to DWU president Rameshbhai Ziliriya, they have got a positive response from the minister.
The ministry has directed the labour commissionerate to look into the demands. “We will definitely work out on the demands DWU has put forward,” Deputy Labour Commissioner M C Kariya told The Indian Express. He also assured that the government would ensure that the diamond polishers “do not suffer”.
The sector has been witnessing a challenging phase with a dip in the demand for polished diamonds in the international market and a crunch in the supply of rough diamonds in the aftermath of the sanctions imposed by the US on the Russian government-owned Alrosa Diamond Mines following the Russia-Ukraine war.
Surat, which used to source at least 30 per cent of its rough diamonds from Alrosa, is now down to nearly 7 per cent, diamantaires have told this paper. To sail over the crisis, factory owners in Surat have declared over 20 days of vacation for diamond workers from June 5.
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The industry, which is largely an unorganised sector, usually announces holidays during Diwali vacations. However, due to the recession-like situation this year, the units have begun declaring summer vacations.
“Many diamond factories in Surat also had extended their vacations and this has led to the critical conditions of the diamond polishers to run their houses. This type of a recession was experienced in 2008 when the state government had come up with Ratnadeep Kaushalya Vardhak scheme to help the diamond polishers financially. We are hoping for a positive workout from the state government and this will help to save the lives of many diamond polishers and their family members,” said Ziliriya.
He said “the big international companies dealing in supply and sales of rough diamonds have also increased the prices of rough diamonds on their own”, adding to the Russia-Ukraine war-induced crisis. “Similarly, prices of polished diamonds should also be increased, but that has not happened. Several diamond units had also done overproduction,” he added.
Exports of cut and polished diamonds have also dipped in a year from USD 24.433 million in 2021-22 to USD 22,044 million in 2022-23, according to a report by the Gems and Jewellery Export Promotion Council (GJEPC) .
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In 2008, when the diamond industry had faced recession, the Gujarat government had announced a Ratnadeep Kaushalya Vardhak Scheme where the diamond workers would be trained to develop expertise in their own work. The training period was for three months where the workers would get a stipend of Rs 3,000 per month.
“The scheme was good but only a few hundred polishers, out of the lakhs, had availed the benefits of the scheme. The reason was its parameters. One was that the factory where such diamond polisher work should be registered with District Industries Centre (DIC). Major diamond factories (except big companies) are not registered with DIC. Secondly, the factory owner had to, on his own company letter-pad, mention the diamond worker has been working in his factory for the past six months. Apart from big-shot companies, the middle and small diamond companies do not have their own letter-pad. Then Chief Minister Narendra Modi had declared Rs 12 crore for the scheme, but it got a poor response as a result of which it was stopped after 2014,” Ziliriya elaborated.
The DWU president urged the state government to “take their consent” when planning such schemes for the betterment of diamond workers.
Kamal Saiyed is a senior Correspondent for The Indian Express, providing extensive, on-the-ground coverage from Surat and the broader South Gujarat region and the Union territories of Daman, Diu & Dadra Nagar Haveli. With a reporting career at the publication spanning back to 2007, he has established himself as a high-authority voice on the industrial, social, and political pulse of one of India’s fastest-growing urban hubs.
Expertise
Industrial & Economic Beat: Based in the "Diamond City," Saiyed offers expert reporting on the diamond and textile industries. His work tracks global market shifts (such as De Beers production changes), local trade policies, and the socio-economic challenges facing the millions of workers in Surat’s manufacturing hubs.
Civic & Infrastructure Coverage: He consistently reports on urban development and public safety in Surat, including:
Traffic & Urban Planning: Monitoring the city's 13-fold increase in traffic violations and the implementation of new municipal drives.
Public Safety: Investigative reporting on infrastructure failures, fire safety NOC compliance in schools and commercial buildings, and Metro rail progress.
Political Reporting: Tracking the shifting dynamics between the BJP, Congress, and AAP in South Gujarat and the neighboring Union Territories (Daman, Diu, and Dadra & Nagar Haveli).
Crime beat: Armed with a good source network Saiyed has been able to bring out the human side of crime stories in his region ... Read More
