New Delhi, Oct 31 (KNN) All the reports about shutting of diamond units and diamond workers losing jobs are just rumors and nothing else, said Babu Gujarati, President of Surat Diamond Association (SDA) while talking to KNN India. 

He quoted; “All the reports coming out are just rumours. The industry is doing well and only because it’s a festive season the units are closed.”

He added, “All the workers have a job and will continue in future as well.”

Speaking on the increase of import duty on diamonds he mentioned, “It will affect the diamond manufacturers, but it is not a permanent problem, will solve in one or two months.”

The diamond industry has officially announced 21 days Diwali vacation starting from November 4.

According to the Gem & Jewellery Export Promotion Council, nearly one in five people engaged in India’s diamond industry may become jobless in the next six months.

The increase in import duty on cut and polished diamonds has led to the business of re-cutting and redesigning shifting to competitors such as China and Thailand. 

However, drop in sentiments amid rupee depreciation and bankruptcy rumor has put heavy pressure on the trading of polished diamonds amid dwindling demand, rising rough diamond prices and the banks squeezing loan in the industry.