Latest news with #DWUG
Telegraph
6 days ago
- Business
- Telegraph
Why workers in the world's biggest gem factory are the latest victims of Russia's war
With tears rolling down her face, Divya Bhen, 40, sits quietly in a corner of her two-room rented flat along with other family members as they mourn the death of her elder son, who worked in the diamond city of Surat, in India. When her daughter tries to comfort her, Divya points towards the bed and says in a shattered voice, 'This is where the diamond market compelled my beloved son to take his life.' The sole breadwinner of the family, Keval, 22, who dropped out of school at a young age to take responsibility for his family, ended his life in June this year after losing his job at a unit where he polished and cut diamonds. Holding Keval's photograph in her lap, his mother says, 'He gave his teenage years to the diamond industry and was a responsible son, caring for us like a father. People his age would roam around, but he would work every day to keep the family going. I would have preferred a life in poverty with him still here, but the recession in the diamond industry led him to kill himself. Like all the other workers who killed themselves, he just couldn't handle the pressure. He took this extreme step, leaving us all in pain and agony for ever.' In the past three years, more than 100 diamond workers have taken their lives, according to the Diamond Workers' Union of Gujarat (DWUG); 55 of them in the past year. Surat, also known as 'Diamond City', in the western Indian state of Gujarat, is responsible for processing 90 per cent of the world's diamonds. The gems are one of India's top export sectors and the city has 5,000 'units', employing more than 800,000 workers. For diamond polishers, the job entails 12-hour days, usually beginning at 8am, and the workspaces are congested and humid, with men working shoulder to shoulder with tireless precision. Over time, the unrelenting polishing, grinding, buffing and inspecting becomes almost mechanical. Using small spinning wheels coated with diamond dust, workers transform rough, uncut stones into glittering, high-value gems. During the process, they continuously inspect each facet using magnifying loupes to ensure accuracy and symmetry. Once polished, the diamonds are sorted, certified, and shipped off to global markets. Historically, many have ended up in the supply chains of some of the world's biggest luxury brands – set into engagement rings, high-end watches and fine jewellery sold across Europe, the US, the Middle East and East Asia. But over the past few years, Surat has felt the impact of the war between Russia and Ukraine. Russia is the world's largest supplier of rough diamonds, but its invasion of Ukraine in 2022 led to a ban on Russian diamonds by the European Union and G7 countries. Later extended to diamonds processed in third-party countries, the sanction has drastically interrupted the supply of rough diamonds to India, halted around a third of India's diamond income and left thousands of workers without jobs. Orders from overseas decreased, and some factories that once swarmed with workers were deserted. Loss of hope Keval's family did everything possible to save his life. As soon as they found out he had taken poison, the family borrowed around 400,000 rupees (£3,500), and his mother sold the only valuable possession the family had – a gold chain she had inherited from her parents – to admit him to a private hospital that would provide the best possible medical attention. It didn't work. Sitting among the mourners in their rented accommodation, Divya says, 'When I saw my son lying on the floor spitting blood, my husband and I took him to the nearby government hospital, where doctors didn't see any hope of survival. But we didn't want to give up, so we borrowed money and even sold my gold chain to save my son. But in the end, we brought his lifeless body home, and now we are in debt.' Keval's younger brother, Keshav, 15, wanted to be an engineer, but he now plans to drop out of school and look for a job in the diamond industry that took his brother away. There are not many other opportunities. 'My father can't work due to health issues, so I have to step into my brother's shoes and get us out of debt, which could take decades. We don't have any other avenue here. My last and only hope is to find a job in diamonds. Unprivileged people like us can't look for any job we like – only what's out there – and for me, it's only diamonds,' said Keshav, as he arranges a garland around his brother's photograph. After his brother's death, he says, no one from the factory visited them to offer condolences, and there was no compensation forthcoming. 'Financially, we are drained, as everything we had is gone. We couldn't say a proper goodbye to my brother, as for the last rites we had to borrow 20,000 rupees [£170], and still didn't have enough money to complete all the rituals of our tradition.' Over the past year, more than 50,000 workers have lost their jobs in Surat, according to the DWUG. India's export of cut and polished diamonds dropped to its lowest level in nearly two decades in 2024-25, partly due to Russian sanctions. With the prices of rough diamonds soaring due to a decrease in supply, it is challenging for manufacturers to stay afloat. Factory owners in Surat are making difficult decisions by axing the workforce or closing down altogether. Rising pressure from the US and China Sitting in his air-conditioned office, closely watching workers through a two-way mirror between his office and the rest of the workshop, factory owner Ramesh is planning to reduce his workforce further in the coming months. 'For us as well, the situation is pretty bad, as it is for the workers. My hands are tied, and I will soon have to make further lay-offs or go bankrupt. Our business is beset by new problems all the time,' he says. Another dilemma they face is that the demand from the world's biggest diamond markets, the US and China, is declining because of competition from less expensive lab-grown diamonds. They accounted for 1 per cent of diamond sales in 2015, but by 2024, that figure rose to 20 per cent. A decade ago, synthetic diamonds were 10 per cent cheaper than natural diamonds, but today they are 80-90 per cent cheaper than their natural counterparts. India accounts for nine out of 10 rough diamonds processed globally. Gems and jewellery are the country's third-largest exports to the US, worth $32 billion in the fiscal year 2023-24. Ramesh, who has been in the industry for more than four decades, fears that the latest 25 per cent tariffs on imports imposed by Donald Trump will completely paralyse the diamond industry in India. 'The United States is our biggest market; if that too is gone, we are doomed. We are not taking on new orders because of this uncertainty, and just hoping that the government will sort it out soon with the US. If not, the market will collapse, and there will be no choice left but to shut down our factories. 'We already had problems, but now tariffs are the final nail in the coffin for us. The next few months are crucial to find out the full impact of the tariffs; all we can do is pray for a miracle to save this industry,' said Ramesh. A crisis of dignity and silence Every day on his way to work, Basant, 35, visits the temple to 'pay his obedience'. He prays for mental stability and prosperity of the diamond industry in Surat. Basant has been cutting and polishing the gems since he was a teenager, but he has never witnessed this level of redundancy. Hoping to give his children the best possible education, he hasn't taken a day off in the past year, despite being severely ill a few months ago. 'This job is my family's survival, and I can't afford to lose it at any cost. I didn't take time off when I was ill, because jobs are scarce and the factory owners know that thousands out there are desperate and willing to work for even less than the scraps we're paid. You fall sick and you lose the day's pay. If you complain, you're replaced – that's how the industry has been working over the last few years. Our fellow workers have ended their lives due to joblessness, and I don't want to be one of them. Since the recession, we work like robots without a complaint, for fear of being thrown out.' At one o'clock, Basant, drenched in sweat, leaves for a short tea break, along with his fellow workers, and while leafing through a local newspaper, he reads about the news of another worker's attempted suicide. 'The city was a dream for thousands like me, now it feels jinxed, as every day we hear about workers attempting to end their lives, and it has become the new normal. My children don't sleep until I return home from work, and during the day, my wife calls me multiple times to check if everything is OK because they are afraid for my life. It's not just the workers impacted by the sanctions, but their families are also suffering mentally,' said Basant, sipping tea. Most of the diamond workers who took their own lives were under immense financial and emotional strain. For them, it wasn't just about losing a job – they were the backbone of their families. That loss stripped them of their sense of purpose and identity. Shame is a major factor. In these close-knit communities, not being able to provide is seen not just as hardship but as a personal and moral failure. There's a deep cultural weight around honour and responsibility. And once one suicide happens, tragically, it can influence others – creating a devastating chain of events, especially in places where mental health support is almost non-existent. This isn't just economic despair; it's a crisis of dignity and silence. Some people described it as a shared grief – something that hangs heavy over entire neighbourhoods. 'Exploited to the core' Last year, the DWUG launched a 24/7 SOS helpline to provide some emotional and financial relief to the workers as the rise in suicides became apparent. Since its start, the helpline has received thousands of distress calls. For Bhavesh Tank, vice-president of the DWUG, responding to SOS calls is now a significant part of his everyday life. 'I rarely spend time with my family, as I am mostly on the phone consoling workers crying for help, night and day. Initially, I used to keep a count of calls. Now I don't, as it's getting scary seeing the number growing with each passing day – workers trying or thinking of putting an end to their lives. What we're seeing in the news is just the tip of the iceberg,' says Tank, while checking his phone. He is worried that if conditions don't improve soon, the helpline won't be able to save lives. 'I have been able to bring hundreds of people back from committing suicide at times with financial support, or just a few words of hope.' (The money comes from the union and sometimes Tank also makes small contributions from his own pocket.) 'But it can't be the long-term solution, as with sanctions in place, it's the responsibility of the government to mend the situation, as we can only provide temporary relief and minimal financial support. The magnitude of the crisis has grown, and I now receive many calls from workers' families who are under extreme pressure and distress.' According to India's National Crime Records Bureau (NCRB) data, between 2018 and 2022, India witnessed a 44 per cent rise in suicide linked to mental health. Another report, in 2021, shows that 72 per cent of those who die by suicide are men. In March this year, diamond workers in Surat went on a two-day strike demanding a 30 per cent rise in their wages. There was no direct outcome, but soon after that, in May, government officials in Surat met with different diamond industry shareholders to announce a special assistance package for the industry, including school fees, help with electricity bills and paying the interest on bank loans. Not a single member from DWUG was invited to the meeting, even though they have been consistently raising the issues faced by diamond workers since the crisis unfolded. This aid will have no impact in reality, says Bhavesh Tank. 'The majority of diamond workers are not registered, because factories employ them on an informal basis, so proving their employment will be impossible; hence, there will be no financial aid for them. Also, the assistance provided to small units will not relieve the workers as they will not increase wages or decrease working hours,' he explains. He believes if the government wants to help, they should involve workers as well. 'They don't know the situation on the ground and by keeping us at bay, it shows they are not serious about wanting to help. Workers have no education about their rights, hence they are exploited to the core, making them vulnerable to lay-offs, low wages and abuse from the industry. Many of them are unaware of the existence of health insurance and workplace safety,' says Tank, soaked in rain from head to toe as he rushes off to meet a diamond worker in distress. 'Covered with the blood of hundreds' On the outskirts of Surat, Jayanti Tank, 64, reads out the loan repayment notice to his wife, taken out to pay for their house. The couple lost their 28-year-old son, Nikunj, their only child, who was a diamond worker, last year in August when he killed himself, leaving behind ailing parents and a two-year-old daughter. 'Our son was working hard to repay the money to the bank, but lost his job and couldn't find another one. I could see the depression and hopelessness in his eyes, but I never imagined he would end his life. First the city took our son, now we will lose the only roof over our heads. The diamonds people are covered with the blood of hundreds like my son,' said Jayanti. Nikunj's mother, Mukhta, has rarely left her house since her son died. As she makes dinner for her husband, she says, 'The world ended when my son took his life. It's just my body which is alive; the rest of my soul died long ago. The reason behind his death is nothing to do with us. It's so unfair.'
India Today
15-07-2025
- Business
- India Today
Why Surat's gems are losing their shine
(NOTE: This article was originally published in the India Today issue dated July 21, 2025)Joblessness as an occupational hazard? Yes, and it can be fatal, pretty frequently it seems, for those who work the machines in Surat's diamond industry these days. Last July, Sagar Makwana (21), a polisher, died by suicide after losing his job. Come September, thirtysomething Nikunj Tank went the same way, after a spell of deep depression. He left behind two children and a wife. May this year saw the death of Kapil Nimavat, 45, another jobless diamond worker with two schoolgoing children. The Diamond Workers' Union of Gujarat (DWUG) cites over 100 deaths in the past three years—55 suicides in the past year did we get here? It's a full-blown crisis in the diamond industry. Natural diamond sales saw a severe slump after 2022. Lab Grown Diamonds (LGDs)—70 per cent cheaper—got more popular. Now the global markets are sitting on an unprecedented glut of natural diamonds following a 25-30 per cent wholesale price correction. Over the past three years, manufacturers have had to significantly reduce their output. In times of such economic distress, the pain primarily flows downward: in this case, the 800,000 diamond artisans of Surat, often migrants from Saurashtra and elsewhere, who form a bulk of the nearly 1.2 million-strong workforce across Gujarat, Rajasthan and Maharashtra. Possibly for the first time in the history of the five-decade-old diamond polishing industry in Surat, 500 workers went on a two-day strike in March, demanding a 30 per cent increase in wages. In May, the Gujarat government announced an aid package for the industry, the first admission that it is indeed in trouble. The children of certified diamond polishers would get Rs 13,500 school fees, besides power and interest subsidies for small units. But Bhavesh Tank, vice president, DWUG, calls it futile. 'Most companies employ artisans on an informal basis, so proving you are a bona fide employee will be next to impossible,' he says. The fees package practically leaves out younger, unmarried polishers—it assumes they have no dependants. 'Unmarried polishers have younger siblings and old parents as dependants,' says Tank. Their aid coming through depends on proving they have schoolgoing dependant siblings. 'Also, the incentives for small units will not trickle down to the worst-affected artisans as the industry understanding is to reduce the supply of diamonds. They will absorb the government benefits but not increase hours or wages.'As artisans fail to make ends meet, at least a fourth of the trained workforce is believed to have returned to their villages in Saurashtra's Amreli and Bhavnagar districts. Earlier water-starved, the availability of Narmada water has revived farming there. But, says Tank, 'for marginal farmers, agriculture remains risky due to climate threats and volatility in market prices of produce'. What's a side hustle for them? Gig work in diamond polishing. Shashikant Shah, chairman, LGD Council of India, says almost every second village in these districts has a dozen-odd 'ghantis' (diamond polishing wheels). By engaging workers there, 'diamantaires are trying to reduce cost of production while retaining a trained workforce,' he SELLERS GO NATURALThough almost every exporter and trader now deals with LGDs, Shah says some admit to it and most don't. Surat itself has 14,000-15,000 LGD machines, according to the LGD Council, followed by 400 in Mumbai, 200 in Jaipur, 25 in Delhi and 200 being planned in Hyderabad. 'With new companies and different brand names, the younger generations educated abroad have taken to LGDs. But the 30-odd big diamantaires have an inventory of natural diamonds worth Rs 200 crore each, so they aggressively defend the traditional system,' he adds. That's led to a paradoxical push: resources have been diverted to marketing natural diamonds over LGDs, a campaign that's yielding some results. In a slack global market, India has risen over China as the second largest destination for the genuine article. But Shah believes the future potential lies with LGD. Survival remains key for all players—whether at the top or the bottom of the to India Today Magazine- Ends
Indian Express
30-05-2025
- Indian Express
45-year-old diamond polisher battling financial crunch ends life in Surat: Police
Over a week after the Gujarat government announced a special package for the diamond industry, a 45-year-old diamond polisher ended his life in Surat's Kamrej area, police said on Thursday. The victim, who was allegedly battling financial crunch, took the extreme step on Wednesday evening, by consuming poison, said police. According to the details from Kamrej police officials, the deceased, identified as Kapil Nimavat, was a native of Amreli district and was residing at Derod village in Kamrej. On Wednesday evening, he consumed poison on the roadside near Bhurkiya farm at Derod village, said police, adding, a passerby spotted him lying unconscious and informed the cops. After identifying him, the victim was rushed to hospital and his family was informed, said police. The victim could not be saved and died during treatment, said police. The Kamrej police has lodged an accidental death complaint into the matter. During the probe, the victim's younger brother, Mehul, told the police that 'his brother was working at a diamond factory in Varachha and was not earning well'. 'My elder brother had been working as a diamond polisher for the last 10 years. Due to the recession in the industry, he had been getting half salary of Rs 15,000 since January this year, which was not sufficient to meet the monthly expenses,' Mehul told The Indian Express. 'He has two children and his elder daughter goes to school. He was the only earning hand in the family. He had to pay Rs 4,000 monthly house rent among other expenses. He was depressed as he was unable to pay the rent for a couple of months,' he said. An official from Kamrej police station said: 'According to probe, he was facing financial crises and was not earning well to meet the monthly expenses, following which he committed suicide'. Diamond Workers' Union Gujarat (DWUG) vice-president Bhavesh Tank told The Indian Express, 'One more diamond polisher has ended his life due to financial crises. In last 18 months, over 75 diamond polishers have committed suicide. He (Kapil) is survived by two children and his wife. Now, who will look after his family?' 'We have made regular representations to the state government to provide financial aid to help the families of diamond polishers who had committed suicide. The government had declared a package for diamond polishers but that does not include semi-unemployed (50 per cent salary earners). The government had declared Rs 13,500 school fees to be paid for the children of the diamond polishers which is insufficient,' he said. 'The government should financially help families of diamond polishers who committed suicide and also help diamond polishers financially,' Tank said. On May 24, Minister of State for Industries, Harsh Sanghavi, in a media briefing in Surat, announced the special assistance package.
Indian Express
29-05-2025
- Business
- Indian Express
Govt officials meet to discuss package for diamond industry, DWUG members not invited
Surat District collector Dr Sourabh Pardhi Wednesday evening held a meeting with different stakeholders of the diamond industry to discuss implementation of the state government's financial assistance package for the industry. Members of the Diamond Workers Union Gujarat (DWUG), who have been raising the issue of unemployment faced by diamond polishers, were not invited to the meeting. Minister of State for Industries, Harsh Sanghavi, in a media briefing on May 24 in Surat, had announced the special assistance package. Those present at Wednesday's meeting were representatives of Surat Diamond Association, District Employment Office, District industry officers, Labour department officials, and officials of leading banks. A decision regarding the formation of a 'scrutiny committee', which will accept applications from the diamond polishers and diamond unit owners and verify them, was taken to help people avail the benefit of the government scheme. As per the package, the state government will bear the school fees of up to Rs 13,500 for a year of children of diamond polishers, aged 21 and above, who have been jobless for the last one year but have worked for at least three years before that. Apart from this, the 9 per cent interest rate on term loan of maximum up to Rs 5 lakh availed by diamond unit owners will be waived for three years starting July. Diamond units with machinery investments worth Rs 2.5 crore that has witnessed power consumption going down in the last one year will get subsidy on electricity duty on power bills. Talking to The Indian Express, Surat Diamond Association President Jagdish Khunt said: 'The diamond industry is widely established in Surat. There are around 3,500 diamond factories here and around 7 lakh artisans work in these factories. The figures are not accurate though, as no survey has been conducted till date. It would be difficult to identify polishers who have been unemployed since last year. The implementation of the state government's scheme in the diamond industry is quite difficult,' he said. He further said, 'Of 3,500 diamond factories, over 80 per cent run with staff strength of 10 to 40 (2 emery wheels-10 emery wheels). These factories do not have any official company name and are not registered. Similarly, there are diamond polishers who switch jobs and move to different factories every quarter or so , keeping in mind higher wages. The firm owners also do not have details of polishers.' 'At the meeting, it was decided that application forms will contain all necessary details of diamond polishers and diamond unit owners. The work on preparing these forms has been started. Another meeting will be held next week to discuss further actions,' he said. The Indian Express also spoke to DWUG Vice-President Bhavesh Tank. 'We have been protesting over the issue of joblessness since the last three years. We have submitted memorandums multiple times to the Surat District Collector and written to the Chief Minister. The state government has now come up with a financial package for the diamond industry. We were not invited to the meeting,' he said . He also said: 'A couple of days ago, we wrote to the Chief Minister, requesting him to waive off school fees of children of diamond polishers who are unemployed or semi-unemployed (whose salary has gone down by 50 per cent). We have been fighting for the rights of diamond polishers since long. We have all the details of polishers. If we are invited to such meetings, we can provide these details to the committee.' District Collector Pardhi did not respond to calls till press time.
Hindustan Times
24-05-2025
- Business
- Hindustan Times
Gujarat govt announces relief package for recession-hit diamond industry
Ahmedabad: The Gujarat government led by chief minister Bhupendra Patel has introduced a relief package to support diamond artisans and micro-units facing global market challenges and reeling under recession. Minister of state for industries, Harsh Sanghvi, announced the initiative to ease financial strain and stabilise the state's diamond section, especially Surat's diamond trade hub. The decision comes after the government formed a high-level committee in March to look into the industry's issues and there was a strike in late March, led by the Diamond Workers Union Gujarat (DWUG), that prompted further discussions between government and industry representatives. The package will largely benefit the Surat industry where 85% of the world's roughs are processed and employs over 8 lakh diamond artisans. In addition to Surat, diamond manufacturing units are also located in parts of Saurashtra, including cities like Rajkot and Bhavnagar. Global disruptions, including supply chain issues, declining demand, and U.S. sanctions on polished diamonds made from Russian rough stones (33% of Surat's supply), have battered the industry, causing factory slowdowns and job losses. The Russia-Ukraine war deepened the crisis, driving a steep decline in India's diamond exports. DWUG, citing over 60 artisan suicides in the past year and over 50,000 job losses in the last three years due to financial distress, demanded higher wages, industry price support, a welfare board, and aid for education, and unemployed workers from the ruling BJP government. In a December video message, Govindbhai Dholakia, BJP Rajya Sabha MP and chairman of Shree Ram Krishna Exports with six decades in the diamond industry, called this the longest recession he has seen. He urged patience and expressed hope for a soon recovery. Surat MLA Mukesh Dalal, from the ruling BJP, raised the diamond industry's crisis in the Lok Sabha during Zero Hour in March, urging government's intervention to support struggling workers and industries. The Gujarat government's package announced on May 24 offers targeted measures. Artisans unemployed from March 31, 2024, can have their children's school fees covered for one year, up to Rs. 13,500 per child, paid directly to schools via Direct Benefit Transfer (DBT) as per Education Department protocols. Eligible artisans must be over 21, have three years of diamond industry experience, and be currently unemployed. They must apply within two months of the announcement at District Industries Centres with a certificate from the District Labour or Employment Officer, a Diamond Association recommendation, or a school fee certificate. For micro-units, the package provides financial support to sustain operations. Units can access interest subsidies on term loans up to Rs. 5 lakh at 9% for three years, from July 1, 2025, to June 30, 2028, and a one-year electricity duty exemption starting July 1, 2025. Eligible units must have a capital investment in plant and machinery up to Rs. 2.5 crore, three years of diamond industry involvement (2022-25), a 25% or greater reduction in electricity use compared to 2023-24, and Udyam registration before March 31, 2025. District-level committees, led by the District Collector and including officials from labour, employment, education, banking, and diamond associations, will review applications, meeting at least twice monthly. The Gem & Jewellery Export Promotion Council (GJEPC) data shows that India's cut and polished diamond exports have recorded a continuous decline over the past three financial years. In 2022–23, exports were valued at USD 22.05 billion, down by 9.78% as compared to the previous year. The fall worsened to 27.58% in FY 2023–24, with exports dropping to USD 15.97 billion, and further dropped by 16.75% in 2024–25, reaching USD 13.29 billion, amid weakening global demand and inventory pile-up in key markets, as per GJEPC data. Meanwhile, the country's total gems and jewellery exports stood at USD 37.65 billion in 2022–23, which declined by 14.95% to USD 32.02 billion in 2023–24. In 2024–25, exports decreased once again, falling by 11.19% to USD 28.67 billion (USD 28,671.06 million), according to GJEPC's latest figures.
