Stonehard facts, US recession hits Indian quarries

STONED: The quarries in southern India has a huge export market that has declined with the economic meltdown

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Hyderabad: Yet another fallout of the global financial meltdown is witnessed in India's heartland. The slowdown now hits hard the granite industry in Andhra Pradesh.

Touted as the stone 'galaxy' but now facing a financial crunch is an industry dealing in a special type of granite that comes mostly from about two dozen quarries in Chimakurthy in Andhra Pradesh.

Chimakurty is the capital of Andhra's granite industry. About 80 per cent of the granite mined here is exported to China, which puts it through the polishing process and exports it to US & European markets.

"40 per cent of granite market is in US and the rest of the world. this market depends on the exports in a big way," said Reddy, a quarry owner.

But now the global financial meltdown has started hitting Andhra's granite industry as China has tightened its purse strings. The shift in trends is making it hard to find a market for several lower grade quality slabs.

"Number of slabs are lying around without any buyers. Two or three quarries have even shut down due to the steep fall in demand," said Ramchander Reddy who is an Assistant Director of Mines in the government of Andhra Pradesh.

Each quarry on an average employs about 120 workers.

The quarry owners are now trying to tackle the business slowdown without cutting down on labour, which is not an easy task.

The aspect worries quarry owners because the buyers insist on premium quality slabs, which is a difficult task, given the fall in labour.

The global economic crisis is forcing buyers to get selective about their purchases. So while the quarry owners are thinking of cost cutting measures, the daily wage labourer only hopes he is not the next victim of the falling markets.