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Diamond industry gasps for breath, hopes for a miracle soon

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Kamaal Saiyed,Amrita Didyala,Nitesh

Posted: Jan 01, 2009 at 0052 hrs IST

Surat/Ahmedabad The diamond industry has seen lay-offs happening in recent times. Many units in the diamond city of Surat have shutdown, leaving thousands of workers jobless and pushing some of them on the brink of suicide.

The unit owners explained that they do not have rough diamonds and there is no demand for polished ones in the international market. Nevertheless, those associated with the industry still hope that the good old days will be back soon.

Recently, Bhavani Gems, a leading diamond export company, made news after the owner told 700 diamond workers to look for other jobs.

With the intervention of the Labour Department, the company gave cash relief kits to 325 diamond polishers.

Post-Diwali, the majority of diamond units shut shop. But the Labour Department warned the unit owners to reopen their factories and reemploy the workers. Some of the units reopened; some remained shut. This was particularly seen in Katargam, Varachha and Kapodara areas in the city.

A leading diamond exporter of Surat, Kishor Maldar, said: “We are expecting that the dark cloud over the diamond industry will clear up, but it will take some more time. There are no rough diamonds with the factory owners after meeting Christmas demands. The money is stuck with the older stock remaining. Another reason is that there are many unit owners who were diamond polishers before and were unaware about the impending crisis and continued production. Even the sale of diamonds in the US and other countries is low. The shop owners stuck sale boards outside their factories but there were no customers. But I hope things will change after a while.”

Surat Diamond Association president C P Vanani said: “As per our information, the majority of the units are functional and diamond workers are seen going to work. The rough diamond supply will start in January, which will benefit the unit owners. There are many diamond polishers who are not willing to work at lower wages and are seen staying at home and participating in the agitation. Layoffs can be seen in different factories and we are trying our best to tackle them by conducting meetings with the unit owners.”

There are around 700 units in Banaskantha but only 15 per cent are open. Rest of them are shut due to raw material shortage.

Amrit Kosi, president, Banaskantha Diamond Factory Owners Association told Newsline, "As of now, only 15 per cent of units are open and some of them have already started shutting shop with raw material shortage. I don't think more than 5 per cent of units will join them in next three-four months."

He added: "We will find a few permanent workers, as most of them are working on daily-wage basis. So any question of layoff will not arise. But it has occurred several times that a worker gets work for 5 days, but for the next few weeks, there will be no work for him."

There are around 5,000 units in Ahmedabad out of which 25 per cent have started functioning. On Thursday, many more are likely to reopen, but workers are forced to work at lower pay.

Gajendra Rathore, who works at the unit of Gordhan Zadafia, president, Maha Gujarat Janta Party, told Newsline, "Most of us have been forced to work for lower wages, and if we refuse, there will be many others willing to work."

BJP legislator Vallabhbhai Kakadia, who has his unit in Rakhial, said: “We will reopen on Thursday, as the labour commissioner had threatened to take criminal action if we didn't. I don't think we would be able to sustain and have to close our units soon.”

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