Govt Likely To Limit Export Of Granite Blocks

The Centre is considering a policy options on limiting exports of granite blocks in response to various representations from Union ministries, state governments and industry associations.

An official press release said here yesterday that the commerce ministry had received complaints that rampant exports of granite and rough and cut dimensional blocks was affecting the availability of the blocks for value-addition, whose exports could fetch better returns. Of the total exports of $323.2 million (Rs 1082.7 crore) worth granite and granite products from India, granite rough and cut blocks were to the tune of $170.8 million (Rs 572.1 crore), it said.

In view of this, the ministry had been time and again urged to control granite exports so that most of it would be made available for processing within the country and exports in value-added form.

Following representations, the ministry had decided to seek views of industry associations and exporters on the issue before taking any definitive policy decision, the release said.

Of late, the ministry has been receiving complaints that premium quality blocks, were being exported by quarry owners and established units were unable to get enough blocks for processing.

As a result of export of these blocks, the capacity utilisation was not optimum, while due to the export, the benefits of value-addition was being enjoyed by other countries, the release said.

Granite is an important forex earner and the government has been constantly reviewing its performance at various levels, the release said.

Stating it was a declared government policy to export value-added products, the release said the ministry, while recognising the granite block as a value-added item, was of the view that these blocks should be processed within the country.

It was in the interest of the country that the processing was done locally, particularly when sizeable capacities of processed materials exist.

While a ban on export of the dimensional blocks might be counter-productive, the government was seriously contemplating restrictions on export through specific policy measures, including fiscal ones such as imposition of import duties.

A better option could be for the industry to discipline itself by regulating and controlling export of premium quality granite blocks in order to ensure proper and timely supply of the blocks for the domestic industry, it said.

The ministry has sought views of all concerned to arrive at the policy option, the release added.