Current status of Granite Industry in India

 

Now that Pandemic is becoming less lethal due to Vaccination drive, the outlook for stone busines looks bright as construction activities picked up pace across the world.

But the biggest trouble now is not the demand but transportation related.

Trying to List the hardships we face currently

1. Ocean freight has gone up by 400 % to European ports . 
2. Fuel price gone up by 50% in less than a year, resulting increase in cost of quarrying
3. Some Governments (AP and Karnataka) increased the cost of levies upto 50 %
4. Prolonged Monsoon in southern peninsular India, affecting quarrying 

1.The most serious one are freight as in many case , cost of Ocean freight far exceeds the cost of the Goods. For example Colour materials like Vizag blue ,which costs around 750$ a CBM,(If we load 7cbm a container FOB cost for the consignment  is 5500$) . The current freight rate to Balkan is over 7000$ and to continental Europe is 5500$. On top of the freight cost many liners refuse to release boxes for heavy duty cargo like Granite. call it double blow.

Break bulk vessels are few and their schedule is completely unpredictable . we have many cargo awaiting for bulk vessel since 6 months. that is the case of many shippers of Blocks. less frequency of bulk vessel and exorbitant cost of o9cean freight by containers.

2. Fuel prices are soaring ,cost of diesel touching 106 Rupees/Litre against  79 in january 2021- 33% Increase in 10 Months. This has got cascading effect on the goods value. First cost of quarrying has gone up and next cost of transporting the blocks to port also going up as such big steep rise couldnot be absorbed by them.

3. AP government  increased the  seignorage fee (royalty fee) as much as 30 % resulting in quarries raising prices as as 50$ a CBM in materials like Viscon white, G20, Vizag Blue 

4.Usually southwest monsoon withdraws by September end in most places of quarrying Like Warangal, Vizag, Chitoor and Madhanapalle. This year there is continuous rain till October end and now North east monsoon rains started in Tamilnadu . This prolonged spell of rain made quarries operations tougher as water logging need to be cleared frequently by pumping them out from quarrying pits.so naturally quarry output declined

we sincerely hope these hardships, especially on freight rate get over at the earliest.