Any conversation on Surat seems incomplete without mention of diamonds, so symbolic to the city. With an abundance of cutting and polishing units and skilled artisans, Surat deservedly acquired the moniker of India’s diamond hub. Ever since the East Indian Company set up its first factory in Surat in the early 17th century, it has been the face of India’s diamond boom, ever fortifying the economy.
However, the city that literally adds glitter to the country is in a state of shock after 10 diamond workers took their own lives, claimed a report by a national daily. According to the Surat Diamond Workers’ Union, economic hardships pushed them to take an extreme step.
There was a time Surat’s diamond sector would employ about a million people across roughly 5,000 factories. Until 2022, it was a $2.43 billion global diamond market, it is poised to take a leap of $3.41 billion by 2027, according to The Business Research Company.
However, changes in the geopolitical scenario, especially the RussiaUkraine war, have had ripple-effect on the industry. According to a report, more than 50% of the factories have not increased wages for many years. The report adds that during the pandemic, factories shut operations for months and workers weren’t paid. Since the diamond manufacturing activities are conducted in an informal space, workers are deprived of social security benefits like Provident Fund (PF), gratuity, or insurance.
In May, at the G7 Summit, a decision was made to restrict trade in “diamonds mined, processed, or produced in Russia” to cut off a significant financial source for Russia. The report said that efforts were made to curtail the Russian diamond trade, worth $4.5 billion a year, by using advanced technology to trace the origin of diamonds. After the summit, British Prime Minister Rishi Sunak announced a blanket ban on Russian diamond imports. After the war began, ties were severed with Russian diamond miner Alrosa, a company that supplied the bulk of raw material to Surat’s processing factories.
The sanctions, the daily claimed, removed Russia’s central bank and two major banks from the global SWIFT payment system that would facilitate rapid money transactions. Not only has the diamond supply chain been cut off, but there are also no buyers for finished products.
Further, since November last year, factories in Surat reduced working hours, even days, to cope with the crisis in both the supply and demand of diamonds.
Many craftsmen, struggling to even eke out a decent living, are eyeing opportunities in top firms that comply with factory laws and provide industry-standard wages, uniforms, and meals.
They are also considering alternate careers from diamond to textile, another booming sector in the city. Things have come to such a pass, the report adds, that small-time workers are even looking at a future as construction labourers.
Also Read: Mehsana Urban Bank Director Kirit Patel Accused Of ₹2.40 Crore Fraud
