How soon before the diamond workers return?-Diamond workforce of Surat

The labour-intensive diamond industry in Surat is arguably the worst hit in this pandemic lockdown, and industry veterans contemplate whether the workers will return any time soon says R.Sugandha
How soon before the diamond workers return?-Diamond workforce of Surat

We have collected bank data of poor workers in the trading businesses. Initially, BDB has promised Rs 5000 per person as relief fund Mehul Shah, Vice President, Bharat Diamond Bourse (BDB)Surat, arguably the world’s largest workshop for diamonds has seen an unprecedented lockdown, because of the recent government impositions in order to control the coronavirus pandemic. The city is home to about two million workers in the sector, including skilled artisans. This lockdown has hit diamond traders badly, with every extension announced by the government the blow worsened. Currently, the diamond and jewellery business has come to a standstill. This is a global crisis which every authority is trying to mitigate it in its own way. The uncertainty of the scenario has made it more challenging.

As per Gem & Jewellery Export Promotion Council (GJEPC) data -- India’s imports of rough diamonds are down 22 per cent as compared the first quarter of last year, and polished diamond exports have declined 18 per cent. This has contributed to overall exports falling in five of the past six months, pushing down India’s GDP growth to a six-year low of 4.5 per cent last quarter.

Currently, the prime concern for most business owners is for how long they can continue giving salaries to their staff, without booking any profits. “We have spoken to the government authorities, we are doing the best we can to ensure that diamond workers do not starve,” informs Dinesh Navadiya, regional chairman of GJEPC.

If government does not address these issues at a policy level, small traders will have to close shop totally. This will bring the whole economy on its knees. Saving human life takes precedence over everything else. The effect of the virus will escalate into a different form altogether. Trade bodies have given the government an action plan Dinesh Lakhani, Director, Kiran Gems Pvt Ltd.The council is pooling every resource possible and is negotiating with banks, government authorities, other associations, et al to ensure that interests of business owners and their employees is looked after adequately. Mehul Shah, Vice President, Bharat Diamond Bourse (BDB) says, “We have collected bank data of poor workers in the trading businesses. Initially, BDB has promised Rs 5000 per person as relief fund.” Currently, businesses are sinking, unless government supports the traders, they will have to shut shop totally. The industry is eagerly waiting for some customs and income tax subsidies.

“Economy is the backbone of any country. If government does not address these issues at a policy level, small traders will have to close shop totally. This will bring the whole economy on its knees. Saving human life takes precedence over everything else. The effect of the virus will escalate into a different form altogether. Trade bodies have given the government an action plan,” explains Dinesh Lakhani of Kiran Gems Pvt Ltd. A senior team of authorised government decision makers must study the plan and take steps to resolve some of the hurdles. This has to be done at the earliest.

Business owners are also worried because, the government is paying migrant workers relief funds. In such a case, these workers will not return in time, even after the lockdown is lifted.

We have spoken to the government authorities, we are doing the best we can to ensure that diamond workers do not starve Dinesh Navadiya, Regional Chairman, GJEPCPaying anyone any sum, without work, is to ensure that the person will discontinue work totally. “This will weaken the industry further, and it is surely not a good sign,” explains Rajesh Shah of Venus Jewel.

India’s leading authority on migrant studies, Dr Chinmay Tumbe, says, “Most diamond workers in Surat are relatively better off than those working in the textile sector. The powerloom industry workers are paid very low wages and they are the ones going hostile in the current situation.” The IMF predicts India’s GDP growth will drop to 1.9 per cent, as bad as in 1991. This economic disaster will create massive misery that will aggravate illness and deaths.

All the same, migrant workers have always been on the lowest rung of the socio-economic ladder. Their families are away. They lead a solitary existence and survive on minimum pocket money, which they are able to retain for their expenses after sending majority of their earnings to the families located across the country. “Migrant workers in Surat come from as far as Orissa, Bihar, Uttar Pradesh and such other states. Their families live in poverty in their native villages and in the diamond-capital of India these workers are nothing short of paupers,” explains Tumbe The industry is geared to look after the interests of their stakeholders, all the same, when the calamity is of this scale, every measure seems meagre. “Surat is a leading back-end support for some of the world’s finest diamond brands. With the current multipronged crisis hitting the roof, the industry is going through trying times,” opines Rajesh Shah. With time things will get better. And one can only hope for the best.


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