Vaishali Bhen had always had confidence that her husband, Nitin Bhai, would find a way to support their family. For years, he worked in the diamond industry in the west Indian city of Surat, cutting and polishing diamonds, an industry that brought the city international fame.
Then, as Western sanctions on Russia over the Ukraine war went into effect, the once-reliable diamond trade in the city began to crumble. Nitin lost his job — not once but twice — plunging him into despair.
“He was unemployed for five to six months, and when he finally found a job, it lasted just a few days,” Vaishali recalled. “He was always tense. He would come home and say, ‘There is a recession. How will we get our salary? How will we run the home?’”
Vaishali tried to reassure him that things would get better, but one afternoon, after returning from work, Nitin took his own life. “My children saw it through the door,” she said, her voice breaking, “I wasn’t home. He [had] so much tension, and he just couldn’t take it anymore.”
Nitin’s case is not a one-off. He is one of at least 65 diamond workers in Surat who have died by suicide over the last 16 months owing to financial constraints arising out of the Russia-Ukraine war.
Surat has long been the global hub for diamond polishing, employing more than 600,000 workers who cut and polish 80% of the world’s diamonds. But since the war in Ukraine began, sanctions imposed on Russia — one of the largest suppliers of rough diamonds — have caused the industry in Surat to collapse.
Russian Diamonds Banned
The European Union and G7 have banned Russian diamonds, even those routed through third-party countries. This has severely disrupted the supply of rough diamonds to India’s industry, leaving thousands of workers in Surat without jobs.
The sanctions, enforced in March 2022, wiped out nearly one-third of India’s diamond trade revenue. Western buyers, cautious of dealing with Russian-sourced gems, pulled back on orders. Factories that had once buzzed with workers fell silent as demand collapsed, exports halted, and paychecks disappeared, plunging families into financial hardship.
There’s no demand for Russian diamonds, and our workers have nothing to do
Rameshbhai Zilriya, president of the local Diamond Workers Union in Surat, explained that “a lot of diamonds” came from Russia before the crisis. “But since the sanctions were imposed, the market has crashed,” he said. “There’s no demand for Russian diamonds, and our workers have nothing to do.”
Zilriya points out that more than 30% of the raw diamonds India receives come from Russia, and with that supply cut off, the city’s economy has taken a steep downturn.
Ranshod Bhai, who has cut and polished diamonds for four decades, explained that the sanctions have devastated Indian workers in the industry. “We are just sitting idle as there is no work,” he said. “It has been almost two years like this now. I have never seen a crisis like this.”
“No Future Here”
As the work dries up, so do the wages that workers depend on to support their families. Many factories have either shut down or slashed their workforce significantly, with those remaining open offering only part-time shifts at reduced wages.
The ripple effect has been devastating for families across the city.
Workers like Virender Kumar, a 23-year-old diamond polisher from the eastern Indian state of Bihar, have watched their incomes plummet. Kumar earned between 40,000 and 45,000 Rupees (around $476 to $539) a month before the crisis struck. Now, his income has dropped to around 20,000 to 25,000 Rupees ($238 to $297). “[Before] we used to polish 50 to 60 diamonds a day, but now we only do 20 to 25,” he said. “If things continue like this, we’ll have to go back to our villages because there’s no future here.”
Kumar, like so many others, is torn about what to do. If he stays in Surat, he will face an uncertain future. If he returns to his home village in the east Indian state of Bihar, he will have limited opportunities. “I worry about what will happen,” he added. “My family tells me not to worry, that this will pass, but it’s hard not to think about it.”
“Breaking Point”
As wages decline and jobs disappear, the financial stress on families has led to a surge in mental health issues.
Bhavesh Tank, the Vice President of Diamond Workers’ Union in Surat, says the strain on workers is unlike anything they have seen in recent history. “The workers are under immense pressure to take care of their families, but they don’t have any income,” he said. “They can’t pay their rent, they can’t pay for their children’s education, and many are drowning in debt. It’s pushed some of them to the breaking point.”
Tank’s union has responded by setting up a helpline to support workers who are struggling mentally and financially. “In the last few months, we have been able to save some lives,” Bhavesh said. “One worker, Sandeep, was drowning in debt and couldn’t pay his daughter’s school fees. He called us for help. We brought him to our office, helped him financially, and paid his daughter’s fees. If we had not stepped in, I am afraid he might have taken his life too.”
Despite the union’s efforts, many workers are still suffering in silence, and the number of suicides continues to rise. “At least 65 people have died by suicide in the last 16 months,” Bhavesh said. “It’s a tragedy that is unfolding right in front of us.”
“It’s a Disaster”
The diamond polishing factories that once kept the city’s economy humming are now shadows of their former selves. Sanjay Bhai, a manager at a diamond polishing factory, said his workforce has experienced a reduction of more than 70%. “We used to have 150 workers, but now we are down to just 30 to 35,” he said. “I can only give them four or five hours of work a day, and even that’s uncertain. Their wages have been cut in half.”
With demand for diamonds at an all-time low, many factories are struggling to stay open. “We don’t have enough raw materials, and there’s no one to buy what we polish,” Sanjay explained. “It’s a disaster. If this continues, there won’t be any jobs left for us. Some people are even talking about going back to farming because there’s no other option.”
As the crisis deepens, the Diamond Workers Union has called on the Gujarat government to provide financial relief to struggling families. They have also urged the government to reduce the taxes that workers must pay, which they argue are unfair in light of the current situation. But despite repeated pleas, the government has yet to take action.
“We have asked the government to waive the professional tax for diamond workers,” Tank said. “They are already struggling to survive, and they shouldn’t have to pay this tax. We have also asked for an economic package to help the families of those who have died by suicide, but the government hasn’t responded.”
“All We Can Do is Hope”
The union has also proposed the creation of a special board, made up of workers, factory owners, and government representatives, to address the problems facing the industry. “If the diamond industry collapses, Gujarat’s economy will collapse with it,” Tank warned. “We need the government to step in before it is too late.”
Despite the grim outlook, there is still hope among some that the industry will recover. “If the war ends, and the sanctions are lifted, maybe things will go back to normal,” manager Sanjay Bhai said. “We just need the global market to open up again.”
For now, however, the future remains uncertain. Families like Vaishali’s continue to struggle with the loss of their loved ones and the resulting financial strain. “I pray that the diamond industry comes out of this recession and that families can live a good life again,” she said. “We wake up every day worrying about the future, but all we can do is hope.”
