Chinese rule stonewalls exports
Exports plummet due to new rules imposed by government of China
By : DC Correspondent
Update: 2014-09-04 06:24 GMT
Ongole: Export of the famous Chimakurthi black galaxy granite has been hurt due to the recent policies of the Chinese government. China, a major consumer of Galaxy black granite, accounts for a lion’s share of 90 per cent exports. But with the recent 15 percent import duty imposed on granite and the new legislation of one house per family, in China, the figure has gone down. Besides, due to workers’ strike in the polishing units, shipyards are inundated with the granite stocks.
The polishing units in China import Galaxy granite stone from Chimakurty and after polishing and cutting them into various sizes, they are exported to European countries. As a result, Galaxy granite exports have fallen by 50 percent. The material is mostly used for flooring, in kitchen and in the shopping malls, in China.
Tan Brown granite exports too have fallen for the same reasons. Just 10 per cent of Galaxy granite is used in the country, mostly for kitchen slabs. Chimakurthy Galaxy Granite Quarry Owners Association president M.A. Azeem said, “Earlier, we had exported 30,000 cubic metres of Galaxy black granite stone to China. Due to policies of the Chinese government, exports have fallen by more than 50 percent. We are exporting 16,000 cubic meters per month. It is expected to fall further in the months to come. Earlier, we had exported Rs.120-crore worth Galaxy granite per month, now it was reduced To Rs.70-crore per month.” he added.
There are 70 quarries in the Chimakurthy. Some granite companies have already reduced production, he said. Workers have stopped quarrying for Tan Brown granite in Karimnagar district due to lack of export orders.
“If the capital is constructed between Guntur and Vijayawada, the government may use granite for some walls. As a result, the demand is expected to increase in the days to come. But due to increase of diesel price, transporting cost for exporting granite may also increase,” he added.