The Pursuit of Diamonds: Generations Chasing Fortune in India’s Gem Town

In the heart of India’s central state of Madhya Pradesh lies Panna, a district that embodies both struggle and hope. For many, diamond hunting here is not just a livelihood but a lifelong obsession. “I feel sick if I don’t search for diamonds. It’s like a drug,” says Prakash Sharma, 67, who has dedicated over five decades to this pursuit.

Panna is one of India’s most impoverished regions, plagued by poverty, unemployment, and water scarcity. However, it also harbors the majority of the country’s diamond reserves, drawing countless hopeful miners. While the federal government manages most mines, small parcels of land are leased to individuals each year, allowing them to hunt for diamonds at minimal costs.

Once a thriving center known for its rare finds, Panna’s diamond mines have seen better days. Over-mining has depleted the reserves, and the glittering discoveries of the past are becoming increasingly rare. Despite these challenges, the quest for fortune continues, fueled by hope and the allure of untold riches.

Miners like Sharma must surrender their finds to the government diamond office, where each stone is evaluated before being auctioned off. After taxes and royalties are deducted, the remaining proceeds are sent back to the miners, a bittersweet reward for their relentless labor. “When I found my first six-carat diamond in 1974, it was worth a fortune,” recalls Sharma, whose passion was ignited by that initial success. “I wanted to keep searching rather than settle for a low-paying government job.”

The lives of these miners are deeply intertwined with their work, often passed down through generations. Shyamlal Jatav, 58, follows in the footsteps of his grandfather, who began mining decades ago. His son is now balancing his studies while working part-time in the mines. “My grandfather found many diamonds, but they didn’t sell for much back then. Today, some stones fetch tens of millions of rupees,” he explains.

Among those who have struck it rich is Raja Gound, a laborer who found a massive 19.22-carat diamond in July. Desperate to clear his debts, he sold it at a government auction for around 8 million rupees ($95,178). “I had been leasing mines for over ten years, hoping for a find like this,” he says, embodying the determination that characterizes Panna’s diamond hunters.

Historically, India was the world’s only diamond source for over 3,000 years until discoveries in Brazil and South Africa altered the landscape in the 18th century. However, Panna has maintained its reputation as a key diamond hub. The Majhgawan mine, operated by the National Mineral Development Corporation (NMDC), remains the only organized diamond production source in the country, having extracted over 1.3 million carats since it began operations in 1968.

While anyone can mine for diamonds in Panna, most hunters shy away from the official route. Many opt to sell their finds on the black market to avoid taxes and secure quicker payments. A dealer, who wished to remain anonymous, noted that selling through official channels can delay payments for years, making the illegal market appealing.

Despite efforts by local authorities to crack down on these practices, tracking illegal sales remains a challenge due to the small size of most mined diamonds, which often do not command high prices. The number of diamonds submitted for government auction has plummeted; from 1,133 in 2016, only 23 were reported in 2023.

Anupam Singh, a government diamond evaluator, attributes this decline to mining restrictions. “The forest department has designated significant zones as no-go areas for miners,” he explains, pointing to the Panna Tiger Reserve’s conservation efforts that have further complicated the situation. Many miners who previously operated within these zones now face severe penalties for trespassing.

Nevertheless, the allure of diamonds continues to draw thousands to Panna’s shallow mines. Prakash Majumdar, who started mining in 2020 after losing his previous job due to the COVID-19 lockdown, found a diamond worth 2.9 million rupees just a month into his search. Today, he has transformed his life, moving his family into a concrete home and even becoming the village head. Yet his quest remains unquenched. “Diamond hunting will always be part of my life. I won’t stop until I strike it rich,” he asserts, reflecting the unwavering spirit of Panna’s diamond hunters.