In a bid to tackle overproduction amid a recession, diamond companies are extending the usual Janmashtami holiday from two to three days to a full eight days. The move comes as the industry grapples with rising costs of rough diamonds and stagnant prices for polished ones. Industry insiders reveal that the cost of rough diamonds has been on an upward trajectory for some time, while polished diamond prices have flatlined. With Janmashtami falling on September 7, several diamond firms are contemplating an extended week-long break.
Chandu Sheta, a diamond industrialist, says, “Sales of polished diamonds have declined due to prolonged sluggishness in trade. Reducing production is the need of the hour, rather than stockpiling goods. I’ll also be closing my factory for a week starting Janmashtami.”
Damji Mavani of the Surat Diamond Association notes, “The industry will adapt based on their business capacity. Those wanting to cut production can extend their holiday up to seven days. Each entrepreneur will make decisions based on their own situation.”
The extended holiday signals a broader issue within the diamond industry: a need to recalibrate in the face of economic downturn. While factory owners see the move as a necessary step, workers and jewellers argue that these decisions are being made unilaterally, without considering the impact on the broader community.
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