Over 2 Million Indian Workers in Distress Due To G7 Curbs on Russian Diamonds

Nearly 2.5 million Indian diamond artisans in Surat city have found themselves in severe economic distress which they say has been caused by the restrictions of G7 countries on import of Russian-origin diamonds.

Bhaveshbhai Tank, the vice-president of Diamond Worker Union Gujarat, told Sputnik India that the import of “raw materials” from Russia (diamonds) has come to a halt in recent months as the G7 nations have refused to accept cut and polished Russian-origin stones.

“The restrictions on Russian diamonds is one of the major reasons behind this economic distress in the industry. Usually, the business is bustling this time of the year in the lead-up to the festival of Diwali,” Tank stressed.

He estimated that the salaries of diamond artisans in India have “decreased by 30 to 50 percent” on average in recent months.

“A large number of artisans have become unemployed or are getting lesser salaries as they are being offered lesser work from employers. Many large and small workshops have closed down,” the union representative said.

In what Tank described as another “setback” for the Indian artisans, leading Indian diamond trade associations recommended a blanket ban on import of rough diamonds from all countries from 15 October to 15 December in view of slowdown in orders from bigger economies such as US and China.

“This suggested freeze would further worsen the conditions in the Indian industry. Unless there is a relief package from the government or some relaxation in taxes on the sector, the situation could get worse,” Tank cautioned.

Thirty Indian Diamond Artisans Commit Suicide in 5 Months

At least 30 Indian diamond industry artisans in Surat have committed suicide in five months between April and September because of the economic distress caused primarily due to restrictions on Russian-origin diamonds by the G7 countries, Tank revealed.

According to the data compiled by the Diamond Workers Union of Gujarat, the chief reasons for these diamond artisans taking their own lives were “economic distress, unemployment and inability to pay off their debt”.

Tank said that his union has already made the state authorities aware of the economic woes of the diamond artisans. He said that they have held meetings with Chief Minister Bhupendra Patel and Labour Minister Balvantsinh Rajput in recent months.

“We have demanded an economic relief package, a re-skilling programme for the laid off artisans and workshop owners, adherence to labour laws so that we get social security benefits and a compensation package for families of those have committed suicide,” Tank stressed.

He complained that the state authorities have refused to heed to these demands till date.

On Saturday, Tank met Amit Chavda, the leader of Congress legislators in the Gujarat state assembly. The Congress party is the main state opposition party in Gujarat, which is ruled by the Bharatiya Janata Party (BJP).

“Chavda assured us that he would raise our concerns with the state government,” the union representative said.

‘G7 Must Respect Our Human Rights’: Tank

Tank said that he raised the matter of impact of western curbs on Russian diamonds with a high-profile G7 delegation which visited Surat last month. The delegation comprised officials from US Treasury, EU as well as Japan.

“We asked them to respect the human rights of the Indian diamond trade workers by lifting curbs on Russian-origin diamonds. They assured us that they would convey our concerns to their respective governments,” Tank stated.

The visit by the G7 delegation took place amid unconfirmed reports that the club of rich democracies was contemplating including Russian diamonds in its next round of sanctions against Russia.

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5 October 2023, 20:07