The strain in relationship between India and China, recession in the US, war between Russia and Ukraine and Israel-Palestine conflict have affected the granite industry of Karnataka.
The export of granite to other countries from the state has come down over the last one year affecting the industry in Chamarajanagar district, a major supplier of granite.
Most of the quarries in the district are on the verge of closure with supply now being limited to local markets, it is said.
The granite and marble stones are exported to the US, Europe and China from India and there is an annual turnover of around Rs 15,000 crore.
According to S Krishna Prasad, General Secretary of Federation of Indian Granite and Stone Industry, “The business has come down by 40% to 50% over the last one year. Hence, we have slowed down production in quarries. China is the major customer of granite products and the stones were exported from Andhra Pradesh. The tension between the two countries has affected the industry badly”, he said.
Karnataka stands fifth in the country in the export of granite and stone products. There are a number of granite quarries in Chamarajanagar, Ilkal, Kanakapura, Tumakuru, Hassan and Mangaluru and the stones are exported to the US and Europe.
With the economic recession in the US, artificial granite and marble are becoming popular. Incidentally, they are also being exported from India. The demand for granite has reduced by 20% compared to previous years, Prasad added.
The war between Russia and Ukraine, the Israel-Palestine conflict have also affected the market, said Chamarajanagar District Granite Quarry Owners’ Association president G M Hegde.
“America and Europe are our major customers. Due to the economic recession in America, they have tightened the rules, including an increase in interest rates. Besides, the ties between China and India have strained, affecting the business. We do not know how long it will take for the industry to recover,” said Aluru Pradeep, a granite trader.
(Published 12 November 2023, 23:32 IST)