Gujarat: Apex gems body asks diamond workers, industry players to not lose hope
To understand the condition of diamond-cutters or polishers, the Chairman of Gem and Jewellery National Relief Foundation visited different factories as well as villages in Botad town.
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(R) Praveen Shankar Pandya, Chairman of Gem and Jewellery National Relief Foundation, addresses the workers. (Express)In the wake of the ongoing slump in the diamond industry hitting jobs and businesses in the sector, a team from the Gem and Jewellery Export Promotion Council (GJEPC) and Gem and Jewellery National Relief Foundation visited Botad district to assess the situation on Tuesday.
The six-member visiting team led by Praveen Shankar Pandya, Chairman of the Foundation and Chairperson of the Indian Institute of Management at Ranchi, met various stakeholders, including traders and diamond-cutters.
Botad district has a sizable presence of diamond industry players.
Addressing a meeting of diamond manufacturers, traders and cutters at diamond-trading market area at Ratnadeep in Botad town, Pandya appealed to the attendees not to lose hope, assuring them that the situation would improve after March 2025 following the conclusion of the presidential elections in the US.
Sources said due to the ongoing tensions between Israel-Palestine, Iran-Lebanon, and Russia-Ukraine along with the impending elections in the US, the demand for polished diamonds in the international market has dipped.
The hardest hit in the state are diamond cutters who are facing reduced salaries due to reduction in workload.
Sources said that over 50% of diamond factories have shut down over the last two years and thousands of diamond cutters have become jobless, with some switching over to other lines of work.
To understand the condition of diamond-cutters or polishers, Pandya and his team visited different factories as well as villages in Botad town.
“There are over 1,300 small and medium diamond factories in the entire district. While a small factory has a minimum 25 diamond- cutters, large factories each have 700 of them. There are over 80,000 people involved in cutting and polishing diamonds. Besides, there are over 1,500 diamond traders. The diamond traded and manufactured in Botad is directly supplied to big traders in Mumbai and later exported to foreign countries,” said Shanker Dholu, President of Botad District Diamond Association.
He further said, “There are many factories, which could not survive the recession and shut down. The work force has shifted to other areas with some workers returning to agriculture.”
Pandya asserted: “The diamond industry has been going through a tough period for the last couple of years. After visiting different factories and interacting with a large number of diamond-cutters, we found that while they would work from 8am to 8pm during Diwali period earlier, this time they are working fewer hours in two shifts: 8 am to 11 am, and 2 pm to 5.30 pm. Their work has gone down from 50 to 70%.”
He further added, “We will go back to Mumbai, talk to the trustees and see what can be done for the diamond cutters of Botad. The major problem is that diamond cutters get less work and even the factory owners’ situation is critical due to lack of demand for polished diamonds in the international market.”
Pandya pointed out that the diamond industry is not given the kind of subsidy extended to other sectors. “We will make representations to the Ministry, put forward the scenario of the industry and seek assistance,” he said.
“Presently, both wars (Israel-Palestine and Russia-Ukraine) are at their peak. There is also the election in the US. We believe the situation will last till March 2025 after which international demand may increase and the industry will start gaining momentum,” he added.
Set up by the Centre, GJEPC is an apex body that aims to promote the gem and jewellery industry in the country.
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