Granite Industry Takes a Hit From Restrictive Import Policy
Date : December 27, 2011
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Granite industry in India is severely impacted by restrictive import policy on natural stones such as granite and is unable to compete with China and other countries.
According to President, All India Granites and Stone Association (AIGSA), “We have been demanding the central government to place the granite industry, which is largely located in South India, under the Open General License (OGL) list to facilitate smooth export and re-export granite.”
“As for marble imports, the government issues licenses which has benefited only one State – Rajasthan, thus creating market imbalance in the country. The AIGSA has filed a writ petition in the Supreme Court to remove the license quota system and allow free imports,” he explained. China, he said, imports natural stones from several countries, including India and re-exports them in the international market at prices which the Indian stone industry can not compete with.
“Chinese companies have the advantage of a liberal policy and are able to lead the market. The government there gives several incentives, hence the companies are in a position to import stone into the country, and re-export after value-addition. In India, import of granite is not allowed,” he said.
India leads in production of natural stones with 35,342 million tonnes (27.91 per cent share), followed by China (31,000 million tonnes - 23.48 per cent), but India lags behind when it comes to exports. China exported 16 million tonnes of stone valued at $3.04 billion in 2010 as against India's export figures at about $600 million. “If the government is progressive, the industry will grow manifold and we can take on China easily,” claimed AIGSA President.
To address the demand-supply imbalance in the country, the granite industry has been demanding the government to implement the GCDR 1999 in all States which would make available the required quantum of raw material to the industry, by liberalising the quarry leasing policy.
Also to remove restrictive import policies, improve road infrastructure as high transport cost is hurting the business, increase power generation and distribution and start training courses to create job opportunities in the industry. The tenth edition of ‘International Granites and Stone Fair' – Stona 2012, is scheduled to be held at the Bangalore International Exhibition Centre (BIEC), Bangalore from February 1 to 4, 2012.
Secretary, AIGSA said “The fair organised by the All India Granites and Stone Association (AIGSA) reflects the amount of business that it generates at successive fairs. In 1987, when the first Stona was held, export of granite from India was about Rs 50 crore. In 2010, exports had touched over Rs 6,000 crore and the fair has been a major facilitator of such growth.”
“This year the fair is expected to have nearly 500 exhibitors from India and overseas. There are strong delegations from the US, Italy, Turkey, Spain, Portugal, Egypt, Greece, Lebanon, China and Pakistan,” he added.
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