Russia-Ukraine crisis hits Gujarat diamond industry, small factories closed
Russian raw diamonds, usually small, make up 40% of diamond trade volume and about 30% in value which forms part of $18-billion diamond trade between India & Russia which now has taken a hit.
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Surat, May 20: Russia-Ukraine war has had another fallout, India's diamond polishing hub in Surat, Gujarat lost work. The ongoing conflict has impacted the supply of raw diamonds to Gujarat's diamond polishing industry with some large entities curtailing work to just 3 or 4 days & smaller ones shutting down.
The Diamond Workers Union Gujarat's Surat unit on May 4 sent a memorandum addressed to Gujarat CM Bhupendra Patel seeking financial aid to be given to the diamond workers.
"This is a difficult situation and factories have been forced to cut work hours. If it continues, they will be forced to lay people off. The government should intervene," Vipul Shah, vice-chairman of India's Gem & Jewelry Export Promotion Council.
Russian raw diamonds, usually small, make up 40% of diamond trade volume and about 30% in value. This forms part of the $18-billion diamond trade between India and Russia which now has taken a hit.
The roughs supplied before the US-sanctions were imposed are fast running out and the hurdles to set up an alternative to SWIFT payments has slowed down the supply. SWIFT is a payment system that enables banks worldwide to safely and instantly communicate about cross-border payments.
The Diamond Workers Union Gujarat's Surat unit on May 4 sent a memorandum addressed to Gujarat CM Bhupendra Patel seeking financial aid to be given to the diamond workers.
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Shortage of raw diamonds comes at a time when the industry was geared for the Las Vegas diamond show. The wedding season in the USA is about to begin, and India accounts for nearly half of polished diamonds used there.
"This is a difficult situation and factories have been forced to cut work hours. If it continues, they will be forced to lay people off. The government should intervene," Vipul Shah, vice-chairman of India's Gem & Jewelry Export Promotion Council.