Surat Diamond Merchant : A leading diamond manufacturing company in Surat on Tuesday announced a 10-day 'holiday' from August 17 to 27 for its 50,000 employees, citing low demand for polished diamonds in the international markets due to the recession. Kiran Gems is the 'world's largest manufacturer of natural diamonds', according to the company's website. The company has taken this decision due to a low supply of raw diamonds and a lack of adequate demand for polished diamonds exported by the company.

The chairman said- I am tired of the recession

Kiran Gems Chairman Vallabhbhai Lakhani told PTI that we have announced a 10-day holiday for our 50,000 employees. Though we will deduct some amount, all employees will be paid for this period. We have been forced to declare this holiday due to the recession. I am tired of this recession now. He said this was due to the low supply of raw diamonds and lack of adequate demand for the polished diamonds the company exports.

Lakhani said that other players have also been affected by this drop in demand, but they are silent. We have announced it proactively, because we want people to know the reality. This leave for employees will help us to make our production consistent. No one knows the exact reason behind this slowdown.

Other companies are also afraid

Surat Diamond Association president Jagdish Khunt echoed Lakhani's views, saying the recession has hit the local diamond industry, which processes nearly 90 percent of the world's diamonds. "This is the first time Kiran Gems has announced such a holiday (for employees). Though no other company has taken such a step so far, it is a fact that the recession has reduced the sale of polished diamonds," Khunt said.

Since 95 percent of polished diamonds are exported, global factors always impact the sale of precious stones. He cited the Russia-Ukraine war and the Israel-Palestine conflict as some of the factors. "The Russia-Ukraine war and Israel's action in Gaza are some of the factors that have impacted the demand globally. In the year 2022, the turnover of our diamond industry was around Rs 2,25,000 crore, which has come down to around Rs 1,50,000 crore today. Therefore, we have been in the negative position for the last two years," Khunt said. He said that around 4,000 large and small diamond polishing and processing units in Surat provide direct employment to around 10 lakh people.