The Russia-Ukraine struggle has adversely affected the livelihood of lakhs of employees of the diamond business in Gujarat, particularly in rural elements of Saurashtra area the place many models import small-size diamonds from Russia for processing and sharpening, based on business representatives.
The state’s diamond business employs almost 15 lakh employees, the Gems and Jewellery Export Promotion Council’s regional chairman, Dinesh Navadiya, informed PTI.
Due to the scarcity of provide of small-size tough diamonds from Russia, businessmen in Gujarat are compelled to purchase the uncooked materials from African nations and different locations, affecting their earnings.
Hence, the diamond models within the state have curtailed the working hours of their employees and polishers, thus impacting their livelihood, he stated.
The processing of big-size diamonds is principally carried out at models within the state’s Surat metropolis.
The US, the place 70 per cent of the reduce and polished diamonds are exported from India, has imposed a ban on Russian corporations.
Mr Navadiya stated a couple of massive corporations within the US have already despatched them emails, saying they won’t buy items of Russian-origin.
Hence, this has adversely affected the diamond business employees in Gujarat, primarily in Bhavnagar, Rajkot, Amreli and Junagadh districts of Saurashtra in addition to in some northern elements of the state, the business stakeholders stated.
“We had been importing nearly 27 per cent of rough diamonds from Russia. But, due to the war, now that much quantity is not reaching the processing units in Gujarat, affecting the work there,” Mr Navadiya stated.
Nearly 50 per cent of the complete workforce concerned in diamond processing in Gujarat works on small-size diamonds, regionally often known as “patli”, he stated.
Before the struggle, about 30 per cent of the overall tough diamonds imported to Gujarat for sharpening had been introduced from Alrosa, the Russian diamond mining firm, he stated.
Out of all of the reduce and polished diamonds processed in Gujarat, 60 per cent are of Russian-origin, most of them being small-size diamonds, stated Mr Navadiya.
“There is a shortage of rough diamonds due to the Russia-Ukraine war, hence we are procuring the raw material from African countries at a higher price. This has affected our profit margins by around 25 per cent,” stated Lalit Thummar, a diamond dealer from Amreli district.
Some diamond models have additionally reduce the working hours of polishers employed there by 5-10 per cent, he stated.
Mr Thummar stated the diamond models are attempting their greatest to make sure steady provide of ‘patli’ diamonds from different sources, like small miners in African nations and lab-grown small-size diamonds in China, however the value of such stones has additionally gone up, affecting their earnings.
“The diamond units are providing jobs to workers, but not on a scale seen before the war. They are being given six hours of work instead of eight hours earlier, and two weekly offs as against one day earlier,” Mr Navadiya stated.
“As of now, manufacturers are sustaining despite facing losses. The production cost has increased and ready goods are not fetching the right price. Hence, the diamond units are providing limited jobs by trimming down the working hours of employees,” he stated.
Vitthal Mendapara, who owns a diamond unit in Bhavnagar, stated smaller models are essentially the most affected because of the ongoing Russia-Ukraine struggle.
“There is a shortage of rough diamonds, but traders are using stocks lying with them to keep the polishers engaged. Workers in smaller units are affected due to the short supply of rough diamonds,” stated Vitthal Mendapara, the previous president of the Bhavnagar Diamond Association.
(Except for the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)