Diamond workers in city-based diamond polishing units will have extended vacation this Diwali, because of overall economic slowdown in the sector. However, the effect in Ahmedabad is not so grave as in Surat or Mumbai as overall cost of operations are lower in Ahmedabad. Market leaders say the business is down 11 per cent compared to previous year.
"Normally I give Diwali vacation of about 15 days. I may extend by about five days or so," said Ramesh Mangukiya, partner at Yogeshwar Diamonds, which employs 175 persons. Diamond units in Ahmedabad work on basis of contracts from Surat and Mumbai.
Mangukiya informed that the sector is passing through a phase of unusual slowdown and players in Surat and Mumbai are the most affected. However, Ahmedabad is not much affected as cost of operations are lower here.
"There are lay offs in Surat in past two months, but companies have not shrunk their operations in Ahmedabad. So workers in Ahmedabad have no threat to their jobs," said Mangukiya. City's diamond sector employs about 75,000 workers.
A senior official of a Surat-based company, which employs close to 15,000 workers, said that employees will not be laid off but extended. "Companies that give vacation for three weeks, may extend for a week more," said the official on the condition of anonymity as he is not authorized to speak to the media.
