20,000 Surat Diamond Workers Jobless as Demonetization Hits Post-Diwali Return

(IDEX Online) – Over 20,000 diamond workers employed in small diamond units have been left essentially jobless as their employers have not reopened following the Diwali vacation due to the effects of demonetization.

The government's decision last month to withdraw the largest banknotes – of 500 and 1,000 rupees in a bid to crack down on corruption and money-laundering – has hit the diamond and jewelry industries where most transactions are cash based.

The Ratnakalakar Vikas Sangh (RVS), representing the diamond workers in Surat, has demanded unemployment allowance for the diamond workers.

RVS members will be submitting a memorandum to the district collector on Monday demanding unemployment allowance to the diamond workers rendered jobless due to the closure of around 1,500 small diamond units, The Times of India reported.

Gajera said, "These small diamond units have been doing cutting and polishing of diamonds procured from the local market. Most of the units do job-work for the medium and big units. After demonetization, the units are facing a severe liquidity crunch due to the non-availability of cash in the banks. They (unit owners) are unable to pay wages to the workers. Thus, they have shut their units."