Export earnings would have been much more as India has some of the best varieties of stones in the world. Recession in Japan and Europe, the premier markets, and economic crisis in the South East Asian countries are attributed as the major reason for the virtual collapse of the granite Industry here.

Though this is a plausible explanation for a national catastrophe, industry insiders say reasons are within the industry and with the state governments. (Granite is a labelled as a minor mineral and state subject). There is undue political interference in granite quarry leasing for which there has been no norm.

However, a recent guideline issued by the Centre is expected to tackle this problem to an extent. It is a uniform framework for the granite industry to facilitate systematic and scientific exploitation of themineral throughout the country.

Now prospective investors can get mining lease up to 40 years, initial 20 years and a second term on renewal. Mining has to be done according to plans approved by the state government and in an eco-friendly and sustainable manner.

The bane of the industry is said to be the unprofessional competition among the granite exporters themselves. The export itself is in two major segments: rough blocks and finished products. The share of the finished products has been on the increase and for 1998-99 it was 35 per cent rough and 65 per cent finished products. Next year it is expected to be 30:70.

Exporters of the blocks have been making almost distress sales to foreign buyers at very low prices and providing very high margins as wastage. Industry sources say almost 50 per cent of the block is given as margin against the internationally accepted norm of 5 per cent.

According to R Veeramani, chairman granite panel of India and past president of All India Granite and StoneAssociation and CAPEXIL, there is rivalry and unhealthy competition among the multitude of fortune seekers in granite.

Rajasthan green marble is the best in the world. Its price has come down (all the prices in sq. m) from $60 a few years ago to $30. In granite, the `Glaxy Black' variety, which Veeramani has named as `Gold Star', is sold for $ 50-80 now instead of $115 in 19987-88. Similarly the prices of white and yellow varieties, Kashmir white, Kanakapura red, Paradiso black, have fallen to abysmal low levels. India's stone export earnings would have been double the current figure of Rs 1110 crore, if only the prices were proper and on par with the world rates, he feels. In a $ 20-billion global trade in stones, India has only a marginal share, hardly 20 per cent, in spite of being having the largest resource base.

The finished products exporters have been demanding for a local product exporter-demand-linked rough block export regime. This has not been accepted and is being resisted by the blocksexporters. They prefer foreign buyers as they get immediate payment and can realise their investments without much delay. Local exporters are often not as prompt as the international buyers in payment, they say.

But this short term gain is at the cost of national wealth, product industry representatives say. ``We will have to compete with our own stones in the international markets. Indian roughs are converted into products and brought to the markets which we too are trying to tap''.

``Understanding of the export potential, the problems plaguing the industry and framing industry-oriented policies only can improve exports of finished products. The absence of a sustainable policy will ruin the granite industry which can employ millions of Indians and earn millions of dollars for years to come'', Veeramani said at recent meeting in Chennai.