Tariffs Hit Karnataka Granite Trade, Containers Pile Up at Chennai Port

By Admin

14 Apr, 2025

Karnataka’s granite industry under pressure
Karnataka’s renowned granite sector, especially black granite from Chamarajanagar, is reeling under a new wave of economic disruption. The imposition of a 10% tariff by the United States on Indian granite exports has caused uncertainty and concern among quarry owners and exporters. Even though the tariff currently stands at 10%, quarry operators fear it could increase further after a three-month period set aside for negotiations announced by US President Donald Trump.

Exports come to a halt, containers stuck at port
The immediate impact of this tariff is visible at the Chennai port, where container loads of granite destined for the US have started piling up. With exports halted or delayed, the logistical congestion is mounting and adding to operational costs. This pile-up signals deeper challenges in the granite export supply chain, as delays can lead to contractual penalties and damage to India's reputation as a reliable supplier.

Chamarajanagar at the epicentre of the crisis
Chamarajanagar district, which houses around 50 black granite quarries, has been severely affected. These quarries have now either slowed production or come to a complete standstill. Other regions such as Khanapur, Kalaburagi, Bagalkot, and Bidar are facing similar issues. Quarry owners pay Rs 7,000 as tax per cubic metre to the state, and with each quarry producing 100-150 cubic metres of granite monthly, the revenue loss to the state government could be substantial.

High-quality granite with international demand
Black granite from Jothigowdanapura, Udigala, and Nanjapura in Chamarajanagar is known for its premium quality. Used mainly in monuments and tombstones, this granite commands a high price, with each cubic metre fetching at least Rs 1.3 lakh. With 70-80% of the stone exported, Karnataka’s granite trade contributes significantly to the Rs 10,000 crore annual granite export revenue.

Call for government intervention
Exporters have urged the Union commerce ministry to initiate discussions with the US government to mitigate the damage. Over the years, Karnataka's granite has seen steady exports to Europe, the Middle East, and the US, barring disruptions during the Covid-19 pandemic and the Russia-Ukraine war. With such a massive export potential at stake, industry stakeholders are calling for swift diplomatic action to protect their interests and ensure the survival of this thriving sector.