DGFT increases import quota for rough marble, travertine blocks.

Cap of one lakh tonnes comes despite demands for easing norms
Director general of foreign trade (DGFT), under administrative control of commerce ministry, has increased import quota for rough marble and travertine blocks by one lakh tonnes for this financial year.

Travertine blocks are superior quality marble with different chemical composition and both are imported mainly from Italy, Turkey and Egypt.

Restricted import quota has come despite industry’s long-pending demand for allowing marble imports under open general licence category to end monopoly over price by handful importers. As per the recent DGFT notification, eligible units will now be able to import six lakh tonnes of rough marble and travertine in the present financial year at a minimum import price of $325 per mt. Last year, the permitted import quota was five lakh tonnes.

“We have increased the export quota this year and made the process more transparent to cater to the growing domestic demand,” a senior DGFT official told Financial Chronicle.

All India Granite and Stone Association has stated that domestic requirement for raw marble is estimated to be 10 lakh tonnes while there is a potential of value addition on another five lakh tonnes raw marble for exports.

“The restricted marble import licence policy is not providing level playing field to domestic players who are facing shortage of raw material. This is because a handful of companies out of over 10,000 marble units are importing it and re-selling at a higher price. If government puts it under free import category, there is tremendous scope for value addition and thereby exports from India,” J B Surana, president of All india Granite and Stone Association said.

At present, India exports Rs 7,000 crore worth stones out of which marble exports is Rs 300 crore, other stones account for Rs 600 crore, while granite exports are at a high of Rs 6,000 crore.

Import licences that came with some strict conditions this year to make the entire process transparent, will be valid up to September 30, 2013.

As per the notification, DGFT has made it mandatory for the licence holders to file returns regarding imports on a monthly basis. Besides, all licences will be subject to actual user condition and would be on the basis of cumulative turnover of at least Rs 5 crore over 2006-07 to 2010-11.

Source : wrd.mydigitalfc.com