The impact of the fight between Russia and Ukraine is also visible on Gujarat’s diamond industry and due to this the livelihood of 1.5 million people is being affected.
The impact of the war between Russia and Ukraine is also visible on Gujarat’s diamond industry and due to this the livelihood of 1.5 million people is being affected. The most negative impact of this fight is visible in the rural areas of Saurashtra where many units import small diamonds from Russia for processing and polishing. Large size diamonds are processed mainly in the units located in Surat city of the state. 50 percent of the workforce of Gujarat’s diamond industry works on small-size diamonds. Diamond units of the state have cut the working hours of workers and polishers, which has affected their livelihood.
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Diamond traders’ profit margins fall
According to Dinesh Navadia, Regional Chairman, Gems and Jewelery Export Promotion Council, Gujarat’s diamond industry employs about 1.5 million workers. Now the supply of small diamonds from Russia has been badly affected due to the war. Because of this, Gujarati traders have been compelled to buy raw materials from African countries or other places. According to Lalit Tummar, a diamond trader in Amreli district, this has affected his profit margin by about 25 per cent. About 27 percent of raw diamonds have been imported from Russia, but now due to the war, so much material is not coming.
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Business affected by US sanctions
The US accounts for 70 per cent of the cut and polished diamonds exported from India and the US has imposed sanctions on Russian companies. According to Navadia, by sending mail to some big companies of America, informed that they will not buy Russian-origin things made with the help of Russia. Due to this, the business of diamonds has been affected in Bhavnagar, Rajkot, Amreli and Junagadh districts of Saurashtra as well as in the northern parts of the state.
(Input: PTI)
