RBI officials meet diamond merchants in Surat

A team of Reserve Bank of India (RBI) officials interacted with diamond

merchants here on Tuesday to assess their trade potential and

provide them a solution to overcome their present plight of reeling under global recession.

Thousands of small diamond cutting and polishing units are located in and around Surat.
Reportedly, over a hundred thousands of workers had lost their jobson account of the recessionary trends all over Gujarat.

Reeling under severe problems of liquidity, the diamond merchants demanded that the RBI officials must solve their problem and provide financial stability.

"The main problem is of liquidity in the diamond sector. Banks should give loans to the diamond industry and especially workers should be given certain amount like 50, 000 to one lakh; a certain amount according to a plan. If there is liquidity, then the business will progress and withstand the trends steadily," said C.P Vanani, President, Surat Diamond Association.

A K Behra, one of the RBI officials, said that they have take note of the problems and will submit a report to the RBI Governor in a week’s time.

"We had a series of discussions with them on various issues affecting the diamond industry and affecting the interest of the diamond sector workers. In the post line sessions, we met representatives of diamond industry and listened to their problems. The difficulties in finance and the cost involving, including the cost of inventory, the slackening demand in the context of global recession. Thereafter, we met the representatives of the Diamond Workers’ Association and listened to their problems," said Behra.

Sales were down by over 30 per cent in the US, the largest diamond jewellery market in the world, in the last two months.

Many workers involved into the diamond industry committed suicide in the past few months on becoming distressed with the stringent conditions of the diamond industry.

Nonetheless, the meeting of the representatives of the diamond industry and the officials of the RBI has sought a financial package from the Government for revival of diamond cutting units.

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