Used in the manufacture of phosphatic fertilisers, the demand of rock phosphate has been rising by about 15 per annum and RSMM has taken steps to increase its production capacity. The bottomline of RSMM has been hit as China has been found to be indulging in dumping the mineral in India regardless of the cost factors.

``We are watching the whole situation very carefully before planning our moves to counter the Chinese strategy'' says managing director of RSMM, KS Money.

Money said that the high-grade rock phosphate was being sold in a price band of Rs 2100 per tonne to Rs 2200 per tonne depending on the P205 content. The landed price was slightly more.

However the reactivity of the importedrock phosphate is said to be slightly better and the phosphatic manufacturers even mix the rock purchased from outside with the one supplied by RSMM.

In order to sell the rock phosphate in the midst of open imports, RSMM is allowing the buyers the credit facilities of even 180 days with no interest being charged. ``We have to remain in business.''

Huge quantities of rock phosphate are being imported from Syria, Jordan, Togo, Senegal, Israel etc with China being the latest entrant in the business.

RSMM did a total business of Rs 218.79 crore with the bulk of the income coming from rock phosphate alone. For this year, RSMM hopes to do a business of Rs 245 crore.

The total rock handled last year was put at 140 lakh tonnes with the beneficiation plant producing 1.80 lakh tonnes of high-grade rock.By using the low-grade rock phosphate, RSMM also sells Rajphos for use by the farmers.

Last year RSMM sold rock phosphate to the tune of 7.25 lakh tonnes.