Prayaag Akbar finds a trail of corruption and exploitation in the diamond mines of Panna
When Panda Rama [name changed on request] found a large glowing, diamond amidst the dirt in an uthali mine in Panna, he did what he had been instructed to do by his boss – he slipped it to him instead of handing it over to the mining havaldaar. Later that week his boss gave him one thousand rupees for finding the diamond. “Now I wish I hadn’t given it to him,” he says, “If I had given it to the havaldaar at least I would know how much it was actually worth. It was a big stone. I haven’t found anything since then and that was last season. How am I supposed to survive?”
Panna district in Madhya Pradesh, the oldest and largest diamond source in India and once a territory coveted by emperors and kings, is threatening to devolve into the hotbed of a serious humanitarian crisis due to Government inaction, pilferage by local strongmen and the exploitation of adivasi workers in the area. The Hollywood film Blood Diamond might have brought attention to the diamond trade in countries like Botswana, Congo and Angola, the largest producers of diamonds in the world, but the lucrative diamond trade in Panna, in the heart of Bundelkhand, is surrounded by its own tales of hardship and exploitation. The Bundelkhand region is consistently ranked amongst the lowest in India in indices of per capita income, human development, literacy and infant mortality.
Everywhere around are indications of a desperate, pervasive poverty. Yet we are told time and again by proud locals of the area that this land is of great worth. As we approach Panna, our taxi driver says, “The land might look arid and poor, but there are diamonds in the ground here – is zameen main heere hain.” There are three aspects to the recent debilitation of the region and the growth in illegal activity here. First, the Government-run Navratna company NMDC [National Mineral Development Corporation], the largest employer for adivasis working in the diamond trade here, was forced to shut down the only mechanised mine in the country by the Supreme Court for environmental violations. As a result, for the last two years all the diamond extraction has been manually done, in what are called uthali [shallow] mines. These uthali mines, running across the district of Panna, are usually in small standing fields where diamonds have been found in the past.
Many of the adivasis prospecting for diamonds in these mines work without any wage, believing they will be allowed to keep 70% of the value of any stones they find. In reality any stones found are the property of those local contractors who have purchased the lease from the Madhya Pradesh Government. In addition, because the chances of finding valuable stones so close to the surface are minimal, the adivasis working in these mines often toil for months on end without any form of income. In effect, some contractors trick a large number of adivasis into working for them for free. Then, if diamonds are found, a fraction of the value of the stone is passed on to the labourer, with the contractor keeping the bulk of the revenue.
The Rakshaya Mine is a half hour drive from the town of Panna, a long, dry patch of cracked earth that bakes the soles of your feet as you walk upon it. A scene reminiscent of the Californian Gold Rush of the 1850s plays out under the midday sun. There seem to be two levels of employees here; the adivasis who sift through the soil, working without a wage, and the labourers who are paid their mazdoori every day. In one corner a number of the daily-wage labourers, generally young, fit and male, break open the massive Deccan Plateau boulders with kulhaadis. Young women carry the crushed stone to a pool of water a few hundred yards away. Others submerge the rock to separate stone from gravel. Perhaps because of their superior earning potential, perhaps because they are not adivasis, these workers are paid their minuscule daily wages by the contractors. The stone is then dried on flat mud beds until it will be sifted through by the adivasis. Most are old men and women or very young boys and girls.
Bal Kishen is a sun-scarred, needle-thin 60-year-old adivasi from southern Madhya Pradesh who travelled with his family to the mines of Panna to search for diamonds. He has been working here under the belief that he will be allowed to keep a substantial portion of the value of any stones he finds. Rising to his feet with surprising energy, he tells Covert: “Yes, we don’t get paid any daily wages, but I think of it as doing my own dhandaa. Before leaving home I saved up enough money to come here for six months with my family. This area was blessed many hundreds of years ago. It is a very spiritual place. Mahamati Prannath blessed the land for the king, who was his disciple. He was the one who said that diamonds will always be found in the soil.”
Kishen has been sifting through gravel, sand, and soil in search of these shiny stones for four months now. He spends all day working here under the sun, his four young children and wife alongside him in their quest. But he does not seem overly discouraged by the fact that his search has been fruitless. His confidence is borne of both superstition and subtle misdirection from those with power and money. “We came here four months ago. We haven’t found any diamonds yet but I’m sure we’ll come across something before the money runs out. What if I find a diamond worth Rs 5 or 6 lakhs? With that much money I can go home to my village very happily.” Without the workers realising, the contractor will keep most of the money from the auction of the stone. It is also problematic because these uneducated workers are encouraged to believe that stones of that value are regularly found in the shallow mines in this area. However, J.K. Solanki, the Mining and Diamond Officer stationed in Panna, says, “The average value of most of the stones found in the shallow mines is about Rs 20,000 to Rs 30,000.”
Another serious problem in the trade here is that there is a great deal of pilferage of diamonds that are found, causing a direct loss of revenue for the Madhya Pradesh Government. The MP Government is the owner of all the mines in the region and only gives businessmen one-year contracts to operate shallow mines. The licence to prospect for diamonds here is available for only Rs 200. Stones that are found in the shallow mines are supposed to be handed over to Government officials, who then auction the diamonds once every four months. Officials have placed Mining Havaldaars – complete with khaki uniform and laathi – who are required to walk around two or three of these shallow mines every day and take possession of any stones that have been found. Shiddhi Lal, who spends most days of the year walking between three mines in this area, explains: “I have to cover all three mines in the area so sometimes it does become difficult.
If a stone is found and I am not there in that mine who is to say that the person who finds it does not just give it to the contractor or whoever is in charge at the mine? But I don’t think it happens very often. For example, once I took in a 3 carat stone from one of these mines. I remember it was auctioned off for Rs 1.5 lakh.”
Others disagree. Sitaram Patwaria, the owner of a hotel on the outskirts of Panna and a well-known figure in the community, contends that at least one-third of the stones found in the shallow mines are not declared to the havaldaars and pass under the radar of mining officials. “It is bound to happen, because the method of monitoring the extraction is not very good. The businessmen who buy the licences from the Government sometimes don’t want to give even that 10% of the value of the stone, so they tell their workers not to declare some of the stones they find. Diamond traders are always coming to town to buy diamonds – and they can pick these ones up on the cheap because they have to be sold quietly.”
Every resident with knowledge of the diamond trade Covert spoke with agreed that 30-40% of the stones would go undeclared every year. Solanki, the Mining and Diamond Officer of Panna, while unsure about the extent of the illegal trade, admitted that a number of stones are kept out of the official tracking process without his knowledge.
Away from the town of Panna, the standard form of shelter is tiny, decrepit mud huts that are seen sporadically in clusters along the road. It is clear the area is mired in poverty, yet successive State Governments have failed to provide the infrastructure and facilities that would allow this severely underdeveloped region to benefit from this business. Pradeep Pateria, a lifelong resident of Panna and a worker in the Congress Party here, tells Covert: “The Government has failed us because they don’t provide the facilities they should. Industries should be developed here for cutting, polishing, shorting, gridding; if they had built a Diamond Park in this area it would have provided so many jobs. Instead the stones that come from this region create wealth in Bombay and Gujarat, instead of helping one of the poorest places in India.”
The Supreme Court has just sanctioned the reopening of the huge NMDC mine, which should revitalise diamond production here and bring some employment and industry back to Panna. But, inevitably, things will get worse before they get better. As the world economy spirals into recession the demand for diamonds in the big markets like Dubai and the United States, the largest purchaser of diamonds, is declining sharply. Viral Chokshi, a diamond trader with Swastika International, explains, “Because of the recession, the diamond market has shut down in India right now. Over 200,000 people have been retrenched in Surat alone. If the American economy continues to struggle the prices they get at the auctions held in places like Panna will begin to fall as a consequence. Right now there is no demand.”
Some of those operating shallow mines in Panna are already engaged in highly dubious practices. With demand and prices falling, the temptation to cut corners and exploit those without the strength and education to fight back only increases. A new system is needed – one that protects people like Panda Rama and Bal Kishen, who spend their old age on their knees, in search of a sparkling object in the dirt that will transport them from a life spent in poverty
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