Last Updated : 30 September 2009 at 23:15 IST

India's diamond units get big export orders

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SURAT, India (Commodity Online): The signs of prosperity are back in India's major diamond units spread across the city of diamonds--Surat--with the employers declaring just 5 days’ holiday for this Diwali.

In normal circumstances Surat’s diamond units are closed for Diwali almost one month. That is not the case now. With orders piling up at all units following a rise in demand in domestic and Middle East markets, diamond polishing units are finding it difficult to complete the orders. So, the units have decided to reduce the holidays to just five days.

In 2008, after Diwali several units had closed shop following a slump in demand as a result of recession in the US market.

This is for the first time in its history, world’s biggest diamond cutting and polishing centre in Surat is observing one of the shortest Diwali vacation.

Several units can’t afford to shut shops for a single day as they have to deliver goods to buyers at the earliest. Some of the units have asked workers to return from their hometowns after five days if they want to get a handsome Diwali bonus.

Most of the purchases for Christmas are done between June and August. After the slump in US and revised terms and conditions in the Indian market, polished diamonds are sold only for cash and there are no credits given to foreign buyers.

However, this time, the Christmas buying will start in October and it will continue till the end of November. Thus, the diamond manufacturers are not in a position to close down their factories for more than five days.

Industry experts said if the sub-prime crisis in US had scripted the recession story for Surat’s diamond industry, the rising demand from domestic market in India, Hong Kong, China and West Asia is helping the sector regain its lost glitter.

It will be one of the shortest Diwali vacation in last four decades.

Roughly 500 units — 40 per cent of the 1,250 units which shut shop in the wake of economic crisis — are back in business giving employment to 1 lakh jobless diamond polishers and other workers. There are many diamond manufacturers who are facing shortage of skilled workers.