Archive · 27 Jan 2026
Desperation Drives Diamond Digging in Panna
In Panna, India, many people dig for diamonds hoping to escape poverty.
They rent small plots of land for just ₹200 a year and use simple tools to search for diamonds.
Some find success, like a farmer who sold a 32-carat diamond for ₹2.21 crore.
But most spend years working hard and spend a lot of money without finding anything.
The government allows this mining to prevent illegal activities, even though it's not very profitable.
Meanwhile, a big company's mine nearby isn't doing well either.
Panna has been a place for diamond mining for a long time, but now, most diamonds come from other countries.
The people in Panna keep digging, hoping for a better life.
Artisanal miners in Panna dig for diamonds using basic tools, hoping to escape debt and poverty.
Leases for mining plots cost ₹200 per year, but the work is physically demanding and often unsuccessful.
A few miners have found valuable diamonds, like a 32-carat stone sold for ₹2.21 crore in 2025.
The government issues licenses to prevent illegal mining, despite the low profitability of artisanal mining.
Mechanized mining by NMDC Ltd in Panna is also unprofitable and relies on subsidies from other operations.
- Who
- Artisanal miners, including locals and migrants, seeking financial redemption through diamond mining.
- What
- Desperate individuals digging for diamonds in Panna, Madhya Pradesh, despite low success rates and high costs.
- When
- Ongoing, with historical context dating back to ancient times and recent events in 2024-2025.
- Where
- Panna district, Madhya Pradesh, India, near the tiger reserve and Khajuraho temples.
- Why
- Extreme poverty, debt, and the hope of striking it rich drive people to mine for diamonds, despite the odds.
- Location
- Panna, Madhya Pradesh, India
- Primary Mining Method
- Artisanal (hand tools)
- Lease Cost
- ₹200 per year
- Annual Diamond Deposits
- 300-500 carats
- Royalty Rate
- 11.5%
- Mechanized Mine Operator
- NMDC Ltd
- Global Diamond Processing Share
- 90% of world's rough diamonds