Over 70 per cent of six lakh workers in diamond industry yet to return

Signs of global economic revival harbour new hopes but not for lakhs
of jobless ‘ratna-kalakars’

Surat: Make-shift notice boards dangling at main gates of many processing units,
with offers of overtime and raised wages to entice the ‘ratna-kalakars’ (diamond workers), appears to emit signals of restoration of glitter in the diamond city, which till a couple of years ago accounted for cutting and polishing nine out of 12 diamonds of the world, with annual export worth over Rs 72,000 crore. But, the diamond sector here, too, has suffered intense downslides, inflicted by yet-to-be over global economic meltdown for past sometime.

With recession-hit economy in the US, traditionally being major international market for processed precious metals, now slated to be on the recovery path with some core sectors reflecting post-stimulus positive trends, diamantaires here are hopeful of happy days not being too distant.

But, with roads leading to processing units here still deserted and an estimated four lakh, out of earlier total strength of six lakh ‘ratna-kalakars’ engaged in about 10,000 units, yet to return, the Indian diamond industry with its major hub in Surat, is finding hard to regain its crowning glory.

It all started about three years ago as shortage of rough diamonds and compensations for ‘job works’ in processing units remaining stagnant, proved to be a major bottleneck, leading many to slice down their productions, which resulted into major lay-offs of workers, according to trade analysts.

“Out of total six lakh workers in diamond industry here, two lakh were rendered jobless about two years back and they preferred to resume their respective farming occupation in native places in Saurashtra region, from where majority ‘ratna-kalakars’ have been migrating here since past three decades,” said diamond manufacturer and former president of Southern Gujarat Chamber of Commerce and
Industry, Pravin Nanavati.

Besides, shortage of rough diamonds coupled with unfavourable terms of trade in the multi-lateral global sector, largely due to international giants like De Beer with majority control over distribution of raw precious metals the world over and aggressively pursuing dictating terms to patronage emerging markets like China and thus, to contain existing established ones like India, has for past some years, been
threatening enough to blow a final whistle for the till-recently dazzling Indian diamond industry.

In the recession-hit diamond industry here, in past one year 1,250 units were closed due to global slump, leaving two lakh workers jobless, according to the data from the Gujarat state government’s labour department in Gandhinagar. Most of the jobless workers had no option than to go back to their native places. Acute financial
hardships proved to be fatal for about 30 workers who committed suicide in past few months.

With Christmas season traditionally being the best period for diamond business with demands on peak in European countries and the US, anticipation of regaining export turnover from here is finding its basis in gradual recovery of global economy. Also, with Indian domestic market being perceived for robust growth in the ensuing festival season with Diwali just round the corner, an optimism of better days is the driving force, not withstanding the global economy in its entirety.

Says KK Sharma, executive director of Surat-based Indian Diamond Institute, “Perceived demand of diamonds, gems and jewellery due to Christmas festival not being too far away and slow revival of economies in countries like the US, can be attributed to incidental increase, as of now.”

Even if global economy regains its pace, it would be difficult for diamond industry to get reset, as in this highly unorganized sector, hands which cut and polished rough diamonds would no longer be available, with their dexterity being commercially engaged elsewhere. “Why I would be risking my future in the sector which ensures nothing certain,”quips till-recently a diamond polisher Naresh Gosai, echoing
similar sentiments of scores of his earlier co-workers.

Gosai for livelihood runs a tea stall in Varachha here and has no regrets in leaving behind diamond industry, glitter of which remained mirage for several lakh of ‘ratna-kalakars’ like him.