Re hits granite exports

Indian granite exporters are in doldrums with the rupee appreciating by 7 per cent against the US dollar in the last three months. The US is the principal market for Indian granite, consuming about 40 per cent of the exports. Consequently, granite exporters are seeking benefits from the Centre to offset the losses.

"In the last financial year, Indian granite exports crossed the Rs 4,000-crore mark. We had projected a 10 per cent increase in exports this year. We may achieve the growth in exports, but all exporters are bound to suffer heavy losses as the rupee has considerably appreciated against the US dollar. If the Centre does not intervene in time, the situation will turn worse," said Munavar Basha, president, All India Granites and Stones Association.

According to the association, all granite exporting firms have reported a 10 per cent drop in net profit following the rupee appreciation. "A majority of the exporters sought revision of rates with clients in the US. However, it was not accepted. Granite importers in the US contend that the Chinese granite is available for cheaper rate when compared with Indian granite. We have no option other than absorbing the losses to compete with China," he pointed out.

The price of each granite varies depending on its physical form such as uncut granite blocks, polished granite and value added products like monuments and landscape granite. "For instance, Black Galaxy granite is priced between $800 and $1,500 per cubic metre depending on its form. For every cubic metre of uncut Galaxy Granite block, an exporter is losing Rs 5,600. The situation has been the same since the last three months," Basha said.

The association has already forwarded a letter to the Centre seeking relief. "Recently, the government announced measures like quicker refund of certain taxes and reduction of the interest rate on exporters' credit by two per cent to 12 industries. However, granite exports was left out of the list. Though it offers temporary relief, we want to be included in the list," he stated.

A delegation from the Association will meet the Centre shortly to apprise the government of the situation. "Many granite exporting firms have lined up quarrying expansion plans. The industry will suffer if the rupee does not stabilise," Basha said.

Indian granite is also exported to China, Japan, Taiwan, Germany, Singapore and Russia. Apart from China, Indian exporters face competition from Italy, which is the market leader in Europe.