Bhopal (Madhya Pradesh): The conflict in the Middle East has pushed Panna’s already struggling diamond industry deeper into crisis.
With sales plunging and traders struggling to offload old stock, the District Diamond Committee has written to the National Mineral Development Corporation (NMDC) questioning whether holding the next auction would be viable amid the sharp decline in demand.
Earlier, buyers from Surat and Mumbai frequently visited Panna to participate in auctions or purchase polished stones, but such visits have almost stopped. Local diamond auctions have not been held for nearly a year.
Traders estimate that the overall diamond market has declined by around 60%, with prices falling sharply. A diamond that earlier sold for about ?1 lakh is now being sold for nearly ?40,000. The smaller diamond segment has been particularly affected, while there is limited demand for larger stones weighing four, five or eight carats.
Retired government valuer Abhash Singh said the downturn began during the Russia-Ukraine war, when disruptions in global export and import activities affected the trade.
As the war in the Middle East escalates, miners have either stopped or scaled down operations because the current prices do not cover the rising cost of mining. Earlier, production levels were higher and auctions were held four times a year, with about 300 to 350 carats of diamonds collected for each auction.
Traders Switching Business
Due to heavy losses, many traders have either reduced their activity or left the business. Some have shifted to other occupations such as agriculture, property dealing and finance. Local diamond trader Kailash Kushwaha said he now focuses primarily on agriculture. He added that many artisans involved in diamond processing are currently idle because work has almost stopped.
The decline in exports has also affected the district’s broader economy. Vikas Chourasiya, who earlier owned a diamond mine, said that at one time around 200 to 300 traders from outside used to stay in Panna every day, renting houses or hotel rooms. Their presence supported local businesses such as hotels, food outlets and transport services, but much of this activity has now disappeared.
“The department has written to NMDC’s commercial head seeking guidance on the current market conditions. Officials want to know whether holding an auction in the present situation would affect prices. If NMDC advises that the market conditions are unfavourable, the auction may be postponed. The auction was earlier planned between March 20 and March 24, but it has been delayed as proper prices may not be received in the current market,” said Ravi Patel, District Mining Officer, Panna.
Rishita Tomar
