Bhopal (Madhya Pradesh): The Panna Diamond Office has recorded an unprecedented slump, with only 12 diamonds deposited for auction till June this year.At its peak, the office used to receive between 400 and 1,200 diamonds annually.
Diamond examiner Anupam Singh confirmed that only 12 diamonds have been deposited so far this year, describing the sharp decline as surprising.
Traditional diamond trader and digger Naresh Jain said the rate of diamond discovery in Panna has declined over the past few years.
He added that he and his partners have taken several mines on lease and incurred losses of around Rs35 lakh due to poor yields.
Jain said the diamond market has been witnessing a slowdown over the past four years due to ongoing conflicts in different parts of the world, with the situation worsening this year. This has reduced demand and left diamond diggers in distress.
A prolonged waiting period for auction of deposited diamonds has also discouraged diggers, he added.
Pointing to the low number of deposits, Jain said traders from outside the state, particularly Gujarat, have expanded their network to villages in Panna.
He said the possibility of diamonds being sold through unofficial channels for quick cash cannot be ruled out, as diggers often need immediate funds to meet expenses.
Another traditional diamond digger, Prakash Majumdar, said he had deposited two diamonds for auction, but they have remained unsold for the past two years.
He said an investment of Rs 1.5 lakh to Rs 2 lakh is required to dig a mine, and if the diamonds are not sold, it discourages others from taking mines on lease.
Majumdar, who is the sarpanch of Manor panchayat, declined to comment on alternative channels used by diggers who do not deposit diamonds at the Panna Diamond Office.
