Bhopal (Madhya Pradesh): Once there used to be rush of diamond diggers in Panna district and businessmen would apply for diamond mining licence in a big way.
However, since the start of Russia-Ukraine war and global recession, the demand of diamonds has reduced globally. This can be gauged from the fact that out of about 500 diamond mines, people have applied to get licence for 200 of them.
Panna’s diamond trader Naresh Jain said if demand for diamonds did not pick up, mines might get closed. “Why people will come and spend money on digging diamonds if they will not get good price,” he stated. “During Diwali, sale of diamonds would be brisk.
This Diwali, there was no sale at my shop,” he added. He said that the ongoing wars had affected diamond market. Israel used to be one of the biggest markets for diamonds but now there is no demand as the country is engaged in war against Hamas.
Russia was also one of the biggest markets. There, the demand for diamonds has ebbed. Diamond examiner at Panna diamond office Anupam Singh said global recession compounded by Russia-Ukraine war had lessened demand.
As diamonds are no longer in demand and their prices are low, very few people were applying for diamond mine license. Sources said that due to less demand, diamond prices have ebbed and are equal to rates of year 2008.
The diamond auctions organised in Panna did not receive good response and most of the diamond stock remained unsold.
An officer associated with the diamond auction process said about 150 diamonds of different sizes didn’t go under the hammer. The dreams of people who had found diamonds and hoped to earn good amount of money lie shattered.
Published on: Monday, November 27, 2023, 12:37 AM IST
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