Diamond recession hits Surat: Over 600 students drop out as families move back to Saurashtra

Due to the ongoing recession in the diamond industry, many workers in Surat have faced severe economic hardship, leading to a wave of school dropouts as families return to their native villages.

Among those affected is Jagdishbhai Bheet, 30, who worked as a diamond polisher in Surat for seven years.

At the end of Oct, Bheet left for his village in Bhavnagar for the Diwali break, unaware that he would not return.

The factory he worked for remained closed after the holiday break, leaving him without a job or income.

“We don’t have other skills, and other industries do not hire us. There is no option left for us other than going back to our roots,” Bheet said.

With no other source of livelihood, Bheet has been forced to work in his father’s agricultural fields in his village.

However, this has led to another difficult decision. Bheet had to pull his daughter, Arushi, out of school mid-session and transfer her to a new school closer to their village.

Arushi is one of over 600 students in Surat who have dropped out in the last few weeks due to the slump in the diamond industry.

According to the Surat Municipal School Board, 603 students from around 50 municipal schools in the Varachha area, the city's diamond hub, have taken school-leaving certificates since the Diwali vacation, abruptly cutting short their academic year.

Among the schools with the highest dropout rates is School No. 301 in Punagam, where 38 students left after Diwali.

These students, like Arushi, are primarily from families involved in the diamond industry, many of whom are returning to their villages in Saurashtra due to financial constraints.

Hareshbhai Beladiya, another diamond worker from the Amreli district in Saurashtra, is also facing similar challenges.

Beladiya, 28, worked for a mid-sized diamond factory, earning ₹20,000 to 25,000 per month.

However, with his salary reduced at the beginning of the year and the factory not reopening after Diwali, he decided to return to his native village.

“At the beginning of the year, our salary was cut down. Still, we managed to survive somehow. But now, with diamond factories not opening after the Diwali vacation, we have decided to settle in our native place. I have taken the SLC (school-leaving certificate) of my daughter, a Class 3 student, a few days ago,” said Beladiya.

He has already taken the school-leaving certificate for his daughter, Dhruti, a Class 3 student, and moved his family back to Amreli.

“We cannot survive in the city as we have to pay rent (₹3000) and meet other expenses. I tried to get a job in another diamond factory but failed. So, we decided to return to Amreli. I have started working as a laborer in an agricultural field at our village in Chanch and earn up to ₹250 per day,” he added.

There, Beladiya now works as a laborer in the agricultural fields, earning up to 50 per day.

“We cannot survive in Surat with the rent and other expenses. We have decided to return to our village until things improve,” he said.

However, he remains hopeful of returning to Surat once the diamond industry recovers.

The diamond industry in Surat has been facing a significant downturn since 2022, following the US sanctions on Russian diamonds, which disrupted the supply of rough diamonds.

This has led to reduced demand for diamonds, severely affecting the workers in Surat, who are primarily dependent on the industry for their livelihood.

Rajya Sabha MP and diamond magnate Govind Dholakia recently addressed the situation, urging workers to be patient as the industry undergoes what he described as the “longest recession” in his 60 years in the trade.

School officials in Surat have noted a significant increase in the number of students leaving school.

A principal in the Varachha area reported that 28 students left the school after Diwali, the highest number during his tenure.

He attributed the dropouts to the economic difficulties faced by the families of the students, most of whom work in the diamond industry.

“We have 950 students. This year, after Diwali, 28 students from different classes took their SLC, pleading that they were shifting back to their native place in Saurashtra. This is the highest figure in my tenure as the principal in the school. The students coming to our school are from a low-income group, with the parents of a majority of them employed in the diamond industry. Last year, 12 students dropped out,” said the principal.

Rajendra Kapadiya, Chairman of the Surat Municipal School Board, confirmed the dropout figure and mentioned that a team would be set up to investigate the reasons behind it.

In addition to municipal schools, private schools in Surat have also been affected by the recession.

“We believe that a majority of the students are children of diamond polishers. There are also cases of students who had shifted from one area to another (in Surat), as a result of which they have taken leaving certificates. There may be some other issues. We will set up a team to identify the reasons,” said Kapadiya.

“However, we have also filled the gaps by giving new admission to 592 students in November and December in our schools in Varachha. We have a waiting list of over 5,000 students,” he added.

Savjibhai Hun, Chairman of the Self-financed Schools Association, revealed that many private schools are struggling financially, with only 40% of students regularly paying their fees.

Many families are unable to afford the cost of living in the city, leading to an increase in school dropouts.

“There are over 200 self-financed schools, both upper primary and higher secondary, in the Patidar community-dominated area in the city. The self-financed school owners are also facing a tough time over non-payment of fees. Only 40% of students are regular in paying the fees. While many had paid in part, some have not even submitted their first-term fees. We are putting in money from our own savings to run the schools. We are also helpless,” said Hun.

Despite these challenges, Surat’s diamond industry leaders remain optimistic.

Jagdish Khunt, president of the Surat Diamond Association, confirmed that most factories have reopened but are facing a shortage of polishers due to reduced incomes.

Khunt hopes that as the demand for diamonds picks up again, the situation will improve, and workers will return to the city.

“The reason behind the shortage is that their monthly income has gone down by over 50 to 60%, making it difficult to meet monthly expenses. Diamonds are considered luxury products, which affects their sale during a recession. We hope that the situation improves soon and the demand (for diamonds) resumes,” he said.