Exporters of the world-famous black galaxy granite in Prakasam district are a worried lot as the currency devaluation in China, a major importer of rough granite blocks, has come as a bolt from the blue for them. The traders here see the devaluation of yuan as an indication of another crisis looming large on the sector, anticipating that the development would lead to slump in demand for granite blocks.
“The granite industry was hoping to step up exports by at least 25 per cent this year, taking the advantage of the export promotion policies of the Central and State governments. Further, uninterrupted power supply and no upward revision of seigniorage fee are giving the industry the much needed impetus. But, currency devaluation in China, which accounts for a lion's share of the exports, has made our plans go haywire,” laments M.A. Azeem of Shaheen Granites, who is also the general secretary of Galaxy Granite Owners’ Association.
The exports have come down by around 20 per cent in the last three months, he says, adding that China has carryover stock of a year now. The lull in the export scenario has a telling effect on the processing of granite blocks and mining of the raw material as well.
“We have cut down granite mining by 10 to 15 per cent, anticipating tougher times ahead. Though the weakening of rupee has come as a relief, we are forced to slash sale price by 100 to 200 US dollars per cubic metre to satisfy the tough-bargaining Chinese importers ,” he adds.
Though indigenous processing by gang-saw units has improved from 10 per cent to 15 per cent this year, the Euro zone crisis had put paid to our hopes of bagging big orders , explains Sidda Sudheer, who has recently started a processing unit in the Building Products Special Economic Zone.
Granite to the tune of 3.33 lakh cubic metre was mined during 2014-15 as against the 3 lakh cubic metre in the previous year. It may come down to the previous year’s level, fear granite barons.
(Reporting by S. Murali)
We have cut down granite mining by 10 to 15 p.c. We are forced to slash sale prices by 100 to 200 US dollars per cubic metre to satisfy the tough-bargaining Chinese importers
M.A. Azeem,Galaxy Granite Owners’ Association general secretary
