25,000 Diamond Workers Jobless Due to Weak Rupee

The Times of India reported that since last Tuesday, 1,200 owners of Surat-based small and medium diamond units have closed shop because the depreciating rupee has rendered them unable to purchase rough stones to cut and polish. That has left about 25,000 workers jobless.

As quoted in the market news:

Locally known as ‘ghantis’, these units employ about 25 polishers each and have a turnover of Rs 15,000 crore annually. Babu Lekhadia, a small diamond entrepreneur in Varachha, said, ‘We have to buy rough diamonds in dollars, which is very expensive at the moment. It is better to shut down the unit and wait for the rupee to recover.’

Most of these entrepreneurs had purchased roughs when the rupee was Rs 54 against the dollar. So the parcel of rough diamonds valued at $250 per carat cost Rs 13,500 two months ago now comes for Rs 15,000. Dinesh Navadia, president of Surat Diamond Association (SDA), told TOI: ‘If the rupee does not recover fast, the future of these diamond workers is very dark.’

Click here to read the full report from The Times of India.