Diamonds in India

PostBy Avi Paz Group At 25.08.2010

Diamonds have been known and mined in India for at least 3,000 years and possibly as long as 6,000 years. For most of that time, India was the world's only known producer of diamonds. Many Europeans believed the diamond mines at Golkonda, in what is today India's Krishna district, to be the sole source of the precious stones.

In fact, the Golkonda mines produced a relatively small number of diamonds, and the walled city rose to prominence as the Antwerp or Amsterdam of its time through the vigorous trade in diamonds rather than their production.

While Golkonda itself – reputation notwithstanding – might have given the world few fine diamonds, the surrounding region yielded many of the most famous diamonds in the world. The 185 carat Darya-i-noor diamond came from the Golkonda region, as did the Koh-i-noor, the Hope Diamond, and the Regent Diamond.

Golkonda and its environs produced so many major diamonds that the name became associated with stones of fine quality. Gemologists refer to the 2A color grade, which indicates a complete or near-complete lack of nitrogen (the source of yellowish or brownish tints in white diamonds) as "Golkonda" material.

By the middle of the 18th century, most of the India's alluvial deposits, especially the rich diamond deposits along the Penner, Godavari, and Krishna rivers, had been exhausted. In 1725, diamonds were discovered in Brazil and the South American nation outpaced India as the world's leading supplier of raw diamonds.

But Indian mining continues in the Panna group, deposits that extend some 150 miles (240 km) southwest from Allahabad. The Panna mines are managed by the government's Diamond Mining Project, which collects all diamonds mined over the course of a year and auctions them off in January.

Moreover, India remains prominent in diamond cutting and polishing, especially Surat in Gujarat. In 2005, 95% of the world's diamonds were cut in Surat. In 2009, according to the Kimberley Process Annual Global Summary, India exported 22.4 million carats worth of diamonds valued at $712 million.