Panna's diamond trade collapses as production and sales plummet

Diamond production in Panna has fallen sharply in recent years. The local diamond office once received hundreds of stones annually, but only a handful have arrived so far this year. Traders and diggers report growing frustration over delays and poor returns. At its peak, the Panna Diamond Office recorded between 400 and 1,200 diamonds each year. Now, just 12 have been submitted for auction by June. Traditional digger Prakash Majumdar deposited two diamonds two years ago, yet they remain unsold.

The slowdown has affected many in the region. Naresh Jain, a long-time trader and digger, says discovery rates have dropped steadily. He and his partners have lost around Rs 35 lakh due to the poor yields. Diamond examiner Anupam Singh called the decline in deposits surprising.

High costs add to the pressure. Digging a mine in Panna now requires an investment of Rs 1.5 lakh to Rs 2 lakh. Meanwhile, traders from Gujarat have expanded their reach into local villages, changing the market dynamics. The long waits for auctions have further discouraged diggers from continuing their work. The diamond market has struggled for four years due to global conflicts. Fewer stones are being found, and those that are often sit unsold. The industry in Panna faces a difficult period as costs rise and returns fall.