Gujarat’s diamond industry hit hard by Ukraine war

THE Russia-Ukraine war has adversely affected the livelihood of thousands of workers in the diamond industry in Gujarat, especially in rural parts of Saurashtra region where many units import small-size diamonds from Russia for processing and polishing, according to industry representatives.

The state's diamond industry employs nearly 1.5 million workers, the Gems and Jewellery Export Promotion Council's regional chairman, Dinesh Navadiya, said.

Due to the shortage of supply of small-size rough diamonds from Russia, businessmen in Gujarat are forced to buy the raw material from African countries and other places, affecting their profits.

Hence, the diamond units in the state have curtailed the working hours of their workers and polishers, thus impacting their livelihood, he said.

The processing of big-size diamonds is mainly carried out at units in the state's Surat city.

The US, where 70 per cent of the cut and polished diamonds are exported from India, has imposed a ban on Russian companies.

Navadiya said a few large companies in the US have already sent them emails, saying they will not purchase goods of Russian-origin.

Hence, this has adversely affected the diamond industry workers in Gujarat, mainly in Bhavnagar, Rajkot, Amreli and Junagadh districts of Saurashtra as well as in some northern parts of the state, the industry stakeholders said.

‘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,' Navadiya said.