Krishnagiri: The granite industry in Krishnagiri is in the doldrums due to low productivity, slump in exports and increased production cost.

But for the Export Oriented Units (EOU) in Krishnagiri and Hosur, the domestic industry is in recession. Of a total of 200 quarries, about 25 units are only operational. A majority of the units have closed down due to termination of leases and inability to meet international standards.

Financial constraints, escalating fuel prices and shortage of quality raw materials have only added to their woes.

While the cost of production has increased manifold, the demand has reduced due to non-availability of raw material.

There has been no increase in material cost at the world markets compared to escalating production cost. With the quality of the raw materials poor, buyers too are not confident while placing orders.

The industry is flourishing in Karnataka and Andhra Pradesh due to concentration of the units at one place. In Tamil Nadu, barring the EOUs, the remaining lie scattered in Krishnagiri and Hosur.

"The EOUs are not able to get good quality blocks from the quarries. As a result, whatever is rejected by buyers is dumped in the domestic market. The Government must initiate steps to ensure that the big units do not dump low cost material in the local market. It should encourage the export of finished goods rather than rough blocks for value addition and survival of the industry," says a quarry owner.

The production has reduced considerably. About 100 metres of rough blocks are mined per month compared with 300 metres over the last few years. Mining at increased depths has also affected the quality of the stones due to colour variations.

With a majority of the leases not renewed, the Government must issue fresh leases to operate more quarries and generate employment opportunities. Further, obtaining permits from the Department of Geology and Mining is time consuming. This is a reason for small quarries are not able to meet their export commitments.

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