NEW DELHI: Apex trader body for stones AIGSA has termed as termed as high the minimum floor price fixed for imports of certain variety of granite.
In a letter to Director General of Foreign Trade Anup Pujari, President of All India Granites and Stone Association (AIGSA) J B Surana said: "The levy of minimum floor price on granite slabs is too hefty, unreasonable and amounts to a ban on such imports".
On August 28, the
DGFT had said that imports of certain variety of granite stones are allowed freely only if its value is $80 and above per sq metre.
Surana said the industry wants the government to keep imports of these stones under open general licence as there is a severe shortage of raw material on account of closure of several mines and non-issuance of new licences as well as renewals.
"The government has not addressed our main concerns and issues and instead addressed only the issue of import of finished slabs, that too inappropriately," the letter said.
It said imposition of minimum floor price would impact the granite industry, which is a major source of foreign exchange earnings.
"Many of the industries are running only at 50 per cent of their production capacity due to non-availability of raw material," it added.
Granites (worked monumental or building stones) on which the government has imposed conditions are mainly used for flooring purposes.
The AIGSA has also raised concerns over two different notifications of the DGFT on import policy for rough marble and travertine blocks for the year 2013-14 and wants the government to review the policy.
Though unorganised and fragmented, the Indian stone industry has been growing at about 15-20 per cent annually due to a huge domestic market and growing demand for its designer products in the Middle East, Commonwealth of Independent States (CIS) and South-East Asia.
As per media reports, India has emerged as the largest producer of stones, including granite and marble, followed by China and Spain.
But on the export front, India ranked third after Italy and China, with the industry generating Rs 7,000 crore from overseas markets in fiscal 2010-11.
With a market size of Rs 30,000 crore, the industry employs around 2.5 million people directly and indirectly in a dozen states across the country.
Source : economictimes.indiatimes.com