Lacklustre Diwali for Surat's diamond workers

In a narrow lane in the Nandu Doshi ni Vadi area of Katargam, the diamond polishing hub of Surat, Mukesh, a paan vendor, has to raise his voice to be heard over power looms that relentlessly churn out yarn. "I have lost at least 25 per cent of my business in the past few months as diamond workers were laid off. Those who do come are living off lower wages and refreshments are a luxury," he says.

His words bring home the stark reality of the Rs 90,000 crore diamond polishing industry of Surat. With a 70 per cent cut in production, and 20,000 people rendered jobless, the industry is staring at a lacklustre Diwali this year.

The diamond worker is now scouting for other means of livelihood, embroidery being one of them. Katargam houses several diamond polishing units, big and small. Several of the shabby, ill-ventilated buildings housed more than 1,000 workers on average during the good times. While the neighbouring power looms hum ahead of the festive season - Surat produces three million meters of cloth every day - the diamond units are despondent.

More than 300 units have shut shop in Surat, at least temporarily. The tough times have coincided with the festive season, the peak trade season for diamantaires. Surat does about Rs 35,000-40,000 crore worth of business during the three months around Diwali and Christmas.

The industry is unanimous the slowdown this time is worse than the one during the 2008 global meltdown. "There is hardly any work, the industry has to brace for bad times ahead. We see no respite in the coming six months," says Savji Dholakia, owner of Hari Krishna Exports, the diamond firm that made it to the headlines last year for gifting cars, apartments and jewellry to employees as Diwali bonus.

"Raw material prices are very high, while polished diamond prices are down. China, one of the major demand centres, is seeing low demand. Wage cuts are inevitable in such a situation. We have to sail through the tough times," Dholakia says. The world's leading supplier of rough diamonds De Beers recently said the mine-to-market pipeline was clogged with inventory. The Gems and Jewellry Export Promotion Council (GJEPC) estimates rough diamond imports are down by 20.83 per cent in April-August while polished diamond exports are down 4.17 per cent.

A diamond polisher who shut his unit around two months ago says, "There is inventory of more than $2-3 billion in Surat alone. Some peg the number at $5-6 billion. Despite the inventory, rough diamond prices have remained high," he says.

Russian diamond miner Alrosa recently lowered prices by 12 per cent, says Kirti Shah, owner of a small diamond polishing unit, Necklace Diamonds. "I have now started buying bigger diamonds, not less than 2-3 carats. Once the polished diamond market picks up, I will see some profits," he says. Shah is among those lucky enough to be able to hold on. Standing outside the office of Ram Krishna Diamonds, a worker says, "The bigger companies have not shut down, but they have laid off thousands of workers. Many are working at 40 per cent of their original pay." There have been five suicides by diamond workers in Surat in the last five months, the latest victim being a 32-year-old, Mukesh Ravji.

His house in Shivdhara Society off Yogi Chowk in the Sarthana area of Surat is locked. His wife and two children have left for their village in Amreli district. Neighbours say Ravji was a recluse. "He was laid off around a fortnight ago. And he committed suicide. He has around 30-35 bighas of land in the village. Wonder why he took the extreme step?" says a neighbour while embroidering a saree.

"Of the 20,000 who are jobless, only five suicides have happened. These are due to personal problems," says Shah. Workers, however, point out that losing one's job might be the last nail.

"You need to earn Rs 20,000 a month at least to feed a family of four in Surat, where rents for a small house are as high as Rs 6,000 a month," says Dineshbhai Lalakiya, a diamond worker who earns around Rs 30,000 a month at a small unit in Katargam. Lalakiya is a Patidar, a community dominant in Surat's diamond industry. Nearly, 80 per cent of the workers are Patidars, mostly from Saurashtra.

Lalakiya supports the demand for job quotas raised by Patidar Anamat Andolan Samiti leader Hardik Patel. "A diamond cutter has no other skill. When the industry hits a rough note, he goes back to farming, or tries his hands at embroidery," Lalakiya says.

"Our sons are not keen to join the industry. And they are right. A government job, even if it pays less, at least assures a stable income," says Vinodbhai Delvadiya, Lalakiya's colleague. Surat's Patidars are a rallying force behind the 22-year-old Patidar leader Patel.