With the local diamond industry in Gujarat’s Surat facing a drop in demand for their diamonds in the global market, the manufacturers of these precious stones are preparing for a recession. Kiran Gems, a manufacturer of natural polished diamonds from Surat has sent at least 50,000 workers on leave for ten days, as per media reports.
Clearly, the diamond industry is facing a crisis of sorts presently, and the need to control the production of diamonds has been felt. The company has never had to take such an extreme measure before, and hopes that other diamond manufacturers will follow suit so that the industry on the whole can stabilise. Polished diamonds businesses/manufacturers are not getting the right price for their offerings. Therefore, some manufacturers feel that if the supply is controlled, the demand may pick up and eventually grow.
The diamond industry earned close to Rs 2,25,000 crore in 2022, but over the last two years the revenue has petered down to Rs 1,15,000 crore.
The workers who have been allowed to be take leave for over a week will be paid for the no-work days, but in all likelihood at a reduced rate.
It is pertinent to mention here that almost 90 per cent of the diamonds in the global market come from Surat.
While the reasons behind this recession are not really known, the manufacturers feel that the wars and conflicts that take place around the world tend to affect the precious stones trade.
