Shutdowns and Short Weeks for Surat Factories
August 13, 24
(IDEX Online) - As many as a third of the diamond units in Surat, India, are reported to have closed temporarily or to be working short weeks as the slump in global demand persists.
The news follows the announcement made to 50,000 polishers last week by Kiran Gems that it would halt production for 10 days from Saturday (17 August) to rebalance supply and demand.
Many smaller and medium-sized polishing operations in India's diamond capital are implementing shutdowns or limited working works, Jagdish Khunt, president of the Surat Diamond Association, told the Hindustan Times newspaper.
"The industry is facing a tough period. The slowdown has impacted many small and medium-sized businesses. Currently, about 3,500 diamond cutting and polishing units (out of 5,000) are operational. Many units are coping with the crisis by reducing working hours," he said.
An unnamed diamantaire told the newspaper many smaller operations were closing for two or three days a week, said there are concerns of job losses when the diamond units reopen after summer vacations on 28 August.
India's polished diamond exports have fallen every month this year and suffered one of their heftiest drops, down 26 per cent year-on-year to $1.02bn, in June.
Manufacturers drastically cut their rough imports last October in a move coordinated by the Gem and Jewellery Export Promotion Council (GJEPC) and aimed at stabilizing prices after 18 months of decline.