India News | In Surat's Dull Diamond Industry, Diamantaire Helps Families with School Fees

Surat, Aug 11 (PTI) Amid a downturn in Surat's diamond industry, a city-based diamantaire has come forward to help families of workers struggling to pay their children's school fees, prompting industry representatives calling for more such initiatives.

About 90 per cent of the world's rough diamonds are cut and polished in Surat by around 10 lakh workers employed in over 2,500 units.

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Due to factors like the Russia-Ukraine war and weak demand from China, a key market, leading to oversupply, around 50,000 workers have become jobless this year, and those employed have seen their salary cut by around 30 per cent, said Bhavesh Tank, vice president of the Surat Diamond Workers Union.

In calls to a helpline launched for distressed workers, they talked of contemplating self-harm due to the financial crunch, while many requested help to support the education of their children, Tank said.

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Chairman of Surat-based Dharmanandan Diamonds Lalji Patel has offered Rs 15,000 each to 40 students, and cheques to their needy families were distributed at an event in the city on Sunday.

Patel said there is an atmosphere of depression in the diamond industry. To ensure that the education of the children of recession-hit diamond workers is not affected, his firm offered them financial assistance.

“Due to the slowdown, both diamond merchants and workers are suffering financial losses. Dharmanandan Diamonds has decided to pay students' fees. If other diamond companies also come forward and take such initiatives, the problems faced by the workers will be alleviated," Patel said.

Recently, Surat-based Kiran Gems announced a pause in production for 10 days, giving extended vacation to its workers. Other units are operating 4-5 days a week with truncated work hours due to inventory imbalance.

Industry representatives said this is the first time in five decades that there has been a recession for two consecutive years. The situation has only worsened in the last six months, they said.

“The closure of small diamond units has led to some jewellers losing their jobs and they are unable to run their households and even pay their children's school and college fees,” Dharmanandan Diamonds said in a statement.

Alarmed by a rise in suicides by distressed diamond workers, the Surat Diamond Workers Union recently launched a helpline, which received several calls from workers seeking help in paying their children's school and college fees, it said.

After surveying the financial status of the families seeking financial assistance, 40 students were given cheques of Rs 15,000 each for school and college fees, it said.

Dinesh Navadia, chairman of the government-sponsored Indian Diamond Institute, said that the biggest reason behind the slowdown in the industry is the Russia-Ukraine war. Chinese traders have stopped buying natural diamonds, which has worsened the situation, he said.

“It is very important that other diamond units also think like Dharmanandan Diamonds and come forward for help. If this happens, they will create a positive atmosphere in the diamond industry,” he said.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)