Editor’s Note
Surat’s diamond polishing industry is adjusting its annual Diwali shutdown in response to shifting market forces. While the break is a seasonal norm, its duration has recently been used to manage supply amid weak demand for natural stones. This year’s planned closure reflects a cautious industry balancing tradition with current economic realities.
Due to low demand in the last two financial years, more than two vacations were announced during each year, with vacation durations extended by a few days, to control supply. This year, however, the vacation period is not likely to be longer than 20 days.
Demand is slow for natural diamonds, while there is good demand for lab-grown diamonds (LGD). Due to demand for use in jewellery and their affordability, LGDs are in greater demand than natural diamonds, ensuring there is enough polishing work for diamond artisans.
By one estimate, about eight lakh workers are employed in diamond manufacturing in the city. Of the total gem and jewellery exports from India in 2024-25, which were worth $28.5 billion, cut and polished natural diamonds accounted for $13.2 billion, while polished LGD exports were worth $1.2 billion. Almost all of India’s cut and polished natural and LGD production was from Surat.
said Haresh Kubawat, originally a natural diamond artisan who now polishes LGDs.
Due to falling demand in the last two years, diamond polishing units kept operations closed for two days on weekends, while some units reduced daily working hours. Diamond artisans are paid per carat, which are decided considering the diamond’s size and shape.
As is the usual practice, in case of consistently dropping prices of rough and polished diamonds, units control supply to stabilize prices. They reduce production through longer vacations and reduced working hours.
said Jagdish Khunt, president, Surat Diamond Association.
added Khunt.
Diamond polishing units are focusing on clearing rough stock and getting polished stock in hand so they can supply it during the vacation period when orders for Christmas are expected.
said Vijay Navadiya, president, Surat Job Work Diamond Association (SJWDA).
Diamond artisans have also begun preparations for the Diwali vacation with confidence about returning to work, as there is no uncertainty like during past vacations when workers were asked not to return in the last week of the vacation. At many units, the vacation period was extended, and workers were informed of this during the last week by SMS.
said Balu Vekariya, president, Ratna Kalakar Vikas Sangh.