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Vishwanath Kulkarni

BANGALORE, April 8

THE slump in granite prices, both of rough blocks and polished stones, has become a cause for worry among the exporters. The average export prices have dropped by about 40 per cent over the last three years and the slide is much higher in cases of rough blocks.

Sources at the All India Granites and Stones Association (AIGSA), said the prices of rough blocks which were ruling at $600 per cubic metre about two years ago have come down to $350, while in cases of red material, the prices have touched $800 per cubic metre as against $1200 in early 2000. The polished stones are being quoted low at $3.5 per square feet while the small slabs are ruling at $2.

The fall in prices, which has squeezed the margins of exporters, is mainly attributed to the slump in global demand. Moreover, China, which has emerged as the largest exporter and the biggest competitor for India, has been selling at lower prices. "The Indian exporters are in no position to match the Chinese prices and compete with them,'' said Mr Vinay Poddar, President, AIGSA.

The cost of production in China is much lower than in India as the industry there has adopted advanced mining and processing technology. However, China has emerged a major destination for the Indian rough blocks, Mr Poddar added.

China, which does not have enough varieties in terms of colour and texture, has of late been dependent on India for rough blocks. It has been re-exporting the rough blocks imported from India, after adding value in terms of processing and polishing them.

"I do not think the prices will bounce back unless something dramatic happens," said Mr Poddar. "It is too early to talk about the impact of price fall on exports," he said, adding that the figures for fiscal 2001-02 are yet to be released. For 2000-01, stone exports from India, including marble had touched Rs 2,350 crore, registering a growth of 30 per cent over the previous year.

Commenting on the recently announced Exim Policy, Mr Poddar said the industry had hoped for a better treatment. The incentives that have been announced are applicable only to the new industries, while nothing has been done for an existing industry like granite, he added.

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