Surat Extends Diwali Closures as Weak Demand Persists

(IDEX Online) - Major diamond units in Surat, India, are extending their Diwali closures to a month, rather than the usual two weeks, amid the ongoing slump in demand.

And they're warning of possible job losses when work finally resumes on 30 November.

There have already been layoffs and wage cuts in recent months as demand from China and US remains weak, G7 sanctions on Russia bite, prices keep falling and inventories build up.

India's exports of polished diamonds suffered yet another big fall in September, down 22.9 per cent, according to the latest figures from the GJEPC (Gem and Jewellery Export Promotion Council). 

"The month-long Diwali holiday, which is an unusual phenomenon in Surat, has raised concerns among the workers as factory owners have informed us that they will call them once the holiday ends." Bhavesh Tank, vice-president of the Diamond Workers Union, Gujarat, told India's Economic Times.

Surat, the world's capital for diamond cutting and polishing, is home to around 5,000 units, employing an estimated 800,000 people.

File pic of diamond polishing, Surat.