Gujarat: Surat's diamond industry hit hard by Russia-Ukraine war; several factories shut

Supply chain disruptions caused by the ongoing Russia-Ukraine war are causing ripples in Gujarat's Surat where several small factories polishing diamonds have been forced to shut operations. As per reports, the war has stopped the supply of raw materials from Russia.  

Speaking to ANI, Dinesh Navadia, regional chairman, Gems and Jewellery Export Promotion Council said, "Surat's diamond industry witnesses an impact amid the Russia-Ukraine conflict. Every month raw material of around 1.75 lakh carat was imported into Surat via Russia. No raw material availability now. Over 30 to 35 per cent of rough diamonds imported from Alrosa directly come to the Indian market at Surat and Mumbai for cutting and polishing (Sic)."

Diamond factories have either closed down or reduced working days

The diamond industry in Surat has either resorted to closing down several factories or has slashed the working days by three-four days. 

"Russian rough diamonds are generally smaller, making up 40 per cent of India's diamond trade by volume and about 30 per cent in value. The war with Ukraine has now affected this 18 billion dollar trade. The stock of Russian raw materials sent to India before the US sanctions are also about to run out," added Navadia.

The diamond industry has reached out to the state government for aid in these trying times, and the Diamond Worker Union of Gujarat's Surat unit has sent a memorandum to state Chief Minister Bhupendra Patel seeking financial assistance to be announced for the diamond workers. 

India contributes to about 15% of lab-grown diamonds produced globally

The issues about research and development, setting up common facilities and working on developing adequate manpower for the lab-grown diamond industry were one of the issues discussed in a meeting presided by Union Industry and Commerce Minister Piyush Goyal on May 17. It's important to note India contributes about 15% of the diamonds grown in labs on a global basis.  

Lab-grown diamonds are grown by a process of growing a diamond in the controlled environment of a laboratory using cutting edge technology which produces diamonds that are physically, chemically and optically the same as the ones unearthed from under the earth's surface.  

(Image: PTI/AP)