US President Donald Trump’s punitive tariff imposed on Indian goods has severely affected the granite industry in Karnataka. Container loads of goods headed to the US have piled up at the Chennai port.
Though the tax imposed on granite is 10%, there is a fear among quarry owners that it could go up further after a three-month stoppage on tariffs announced by Trump to allow countries to negotiate with the US.
The production has now been affected in around 50 black granite quarries in Chamarajanagar district. Quarries in Khanapur, Kalaburagi, Bagalkot, Bidar and other districts too have either stopped or slowed down stone extraction. This will cause a big hole in the state exchequer as quarry owners pay Rs 7,000 as tax per cubic metre. Each quarry produces 100-150 cubic metres of stones per month. Of this, 70-80% material is exported, running into approximately Rs 10,000 crore.
Quarries in Jothigowdanapura, Udigala, Nanjapura and surrounding areas in Chamarajanagar contain the best-quality black granite, which is used in monuments and as tombstones. It is sold for a minimum of Rs 1.3 lakh per cubic metre.
A few other exporters felt the Union commerce ministry should hold talks with its US counterpart to protect the interests of the industry. The state is known for its high-quality granite, which is exported to Europe, the Middle East and the US. The production and supply were smooth all these years, except during the Covid years and also for a while after the war broke out between Russia and Ukraine.
