Surat diamond workers threaten to go on strike from March 30

Ahmedabad: The diamond workers of Surat have threatened to go on an indefinite strike from March 30 if their demands are not met, including wage hike and higher price.

The looming strike marks the peak of months of rising tensions in an industry that polishes 80% of the world’s diamonds but is now grappling with its worst crisis since 2008.

“We will take out a rally in Katargam area of Surat on Sunday before going on an indefinite strike if the government does not meet our demands by then. We expect at least 1.5 to 2 lakh workers to join us in the strike,” said Bhavesh Tank, vice-president of Diamond Workers Union Gujarat (DWUG) which has given the strike call.

Around eight lakh diamond workers are employed in Surat, the hub of India’s gem and jewelry industry, which plays a crucial role in the global diamond trade. Over the past year, polished diamond prices have declined by 15-20% due to weakening demand in key markets like the U.S. and China, adding to the challenges faced by the sector.

The Russia-Ukraine war has impacted Surat’s diamond industry in the last three years, as 33% of its diamonds come from Russia, either directly or through other sanctioned countries. U.S. sanctions ban the import of polished diamonds made from Russian rough stones above certain carat weights, regardless of where they are processed, adding to the industry’s challenges.

The workers’ unions had earlier submitted a detailed appeal to the state government through the Surat Collector, urging immediate action.

Their demands include a significant wage increase tied to inflation, higher diamond prices to sustain the industry, and the creation of a welfare board for artisans. They have also called for financial assistance to cover education fees, housing costs, and rent, along with a support scheme for unemployed workers and families of those who have died by suicide due to financial distress. DWUG’ Tank claims that more than 60 diamond workers have died by suicide in the last one year due to the downturn in the industry.

The workers union said in a statement that after negotiations with the state government in the first half of this month by various representatives of the diamond industry, the government formed a high-level committee and assured them an action plan within two days and a decision within 15 days.

“However, with the deadline approaching and no official announcement, frustration is mounting. We do not want to strike, but the government’s delay is leaving us with no choice,” said the union leader.

India’s polished diamond exports fell 12% between April 2023 and February 2024 compared to the same period the previous year, according to the Gem & Jewellery Export Promotion Council. Preliminary data for the current fiscal year shows no recovery, with January 2025 shipments down another 15% year-over-year.