SURAT: It is a déjà vu for the Rs 80,000 crore diamond cutting and polishing industry in Surat . Five years after global recession rendered lakhs of diamond workers jobless - many even committed suicide - thousands are staring at the same fate.

The depreciating rupee has resulted in nearly 1,200 small and medium diamond unit owners in shutting shops as they are unable to purchase rough stones whose prices have touched an all-time high. This has led to at least 25,000 workers being rendered jobless since last Thursday.

Locally known as 'ghantis', these units employ about 25 polishers each and have a turnover of Rs 15,000 crore annually. Babu Lekhadia, a small diamond entrepreneur in Varachha, said, "We have to buy rough diamonds in dollars, which is very expensive at the moment. It is better to shut down the unit and wait for the rupee to recover."

Most of these entrepreneurs had purchased roughs when the rupee was Rs 54 against the dollar. So the parcel of rough diamonds valued at $250 per carat cost Rs 13,500 two months ago now comes for Rs 15,000. Dinesh Navadia, president of Surat Diamond Association (SDA), told TOI: "If the rupee does not recover fast, the future of these diamond workers is very dark."