The Hindu Business Line : Recession hits granite exports from Srikakulam

Global economic recession has badly hit granite exports from Srikakulam district this year and exports have almost been halved from the usual level of Rs 100 crore or so a year.

Blue granite exported from the district, known in the international market as Srikakulam Blue, is much sought after in the US, Japan, China, Taiwan and several European markets. It is mainly available in Tekkali and Pathapatnam mandals and it is estimated that reserves are of the order of 29.25 lakh cubic metres, of which roughly 2 lakh cubic metres of granite is in the form of recoverable blocks.

According to Mining Department sources, 150 colour granite mines are identified in the Tekkali region and also 40 road metal granite mines. Srikakulam Blue is exported in gang saw sixe and cutter size.

Granite exporting companies from the district such as MSP Granites, Sterling Stone Exports Pvt Ltd, Golden Rocks and Madhucon Granites Pvt Ltd are in great distress and they contend that unless the State understands their plight and reduces the royalties and the Union Government offers some export incentives, their survival may be difficult.

The industry sources say that the State Government is charging royalty of Rs 750 to Rs 2,250 a cubic metre for different varieties of granite and the target for the current financial year has been fixed at Rs 13 crore. Till date, only Rs 7.67 crore has been realised, reflecting the sorry state of the industry.

Industry sources anticipate the recession to last at least two more years and urge the Union and State governments to rescue them, and thousands of workers dependent on the industry.

More Stories on : Granite & Marble | Andhra Pradesh | Exports & Imports

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