Surat Diamantaires to Close Units Ahead of Planned Diwali VacationOctober 26, 15
(IDEX Online News) – The current slowdown in manufacturing is prompting Surat diamantaires to consider closing their manufacturing units ahead of the planned Diwali vacation. While the 20-day holiday was scheduled to being from November 5, a number of units will close by the end of October, according to reports in the Times of India (TOI).
"Most of the units are contemplating to close early and reopen in the first week of December,” an unnamed Sightholder told the paper. “The elections to local bodies are likely to halt cash transactions in the city. This will create problems for many in the diamond industry when they need cash to pay bonus and wages to workers before Diwali festival."
The industry has been hit by the slowdown in the Chinese economy, as well as a drop in demand for polished diamonds.
However, according to the paper, it is not all bad news. Market sources report that among the closures, there is some movement in the market due to domestic demand for polished goods ahead of Diwali festival, while some Christmas orders have also been received from overseas buyers.