he economic slowdown in China, which affected global equity markets recently, has also cast its shadow on the granite industry of Karimnagar district.
Since the last one year, the industry is reeling under acute crisis and China’s slowdown had further worsened the sector. Consequently, the number of granite quarries in the district has dwindled from over 180 to 15. Besides, only four quarries are continuing production at present.
The Karimnagar granite, which is mostly tan brown and maple red, is mostly consumed in China. Hence, almost 90 per cent of granite mined in the district used to be exported to China, while only 10 per cent of it is consumed in the domestic market.
During the Beijing Olympics, sales soared and the district exported about 100,000 cubic meters of granite a month. Now, the monthly exports have declined to 10,000 cubic meters and stocks have piled up at ports.
The granite industry in the district took its roots in late 1990s and picked up momentum from 2002. During the hay days, the value of annual granite exports from the district used to touch Rs. 400 crore. More than 100 polishing units have come up expecting huge business in the local market, but in vain.
Owners of granite quarries are stated to have invested Rs.3 crore to Rs. 4 crore on each unit by obtaining loans from banks. Karimnagar district granite quarry owners’ association president, Rachakonda Tirupathi Goud, said that the crisis in the industry is forcing owners to sell machines and that they are worried over the payment of bank loans.
Following the crisis, banks are worried about the repayment of loans even though the quarry owners are borrowing money from other sources to repay the loans. The total borrowings from banks by quarry owners is estimated to be in the range of Rs. 300 crore.
“There is no international and domestic market to the granite since last one year. We are worried whether the industry would survive or close down forever, displacing the owners and several thousands of workers. Several owners are on the verge of committing suicide as they are unable to repay loans,” Mr. Goud said.
Similar fears have been expressed by managing partner of Sri Venkatesh Granites, Venugopal Karwa.
The crisis in the granite sector also affected lorry and dumper owners, hotels and the railways, he said. The industry used to engage more than 700 lorries and 300 dumpers.
The skilled labour engaged in granite industry cannot secure employment in
other trades
Anand,
a migrant labour from Bihar
