GRANITE UNDER PRESSURE

 

BIZ MASALA | BUSINESS. MARKETS. PEOPLE. INSIGHT.

Two Telugu States, One Industry at a Crossroads

Export volatility, shipping costs and a new Telangana royalty regime put jobs, public revenue and regulatory credibility under the spotlight.

 

Editorial infographic; see sourced tables and verification notes in the article.

By Murthy ASR | 15 October 2026

HERO IMAGE DIRECTION: Use dated, on-location photographs of Tan Brown granite blocks and processing in Karimnagar, Black Galaxy slabs in Chimakurthy, port containers and a weighbridge/permit checkpoint. Avoid generic stock images or visuals implying unverified events.

 

The stone is still there. The market is less certain.

Granite is a geological asset, but the business built around it depends on export buyers, quarry leases, working capital, electricity, diesel, cutting tools, freight rates, port access and predictable rules. In Telangana and Andhra Pradesh, those pressures are converging—although not in identical ways.

Karimnagar and Khammam supply commercially recognised varieties including Tan Brown and other colour and black granites. Chimakurthy in Andhra Pradesh is associated with Black Galaxy, a signature product of Prakasam district. Both belts connect quarry operators to processors, exporters, transporters and workers. When overseas demand weakens or shipping becomes more expensive, the shock can move quickly from export orders to factory shifts, wages and quarry activity.

The evidence points to a layered problem: a national export decline over recent fiscal years, acute shipping disruption reported during the West Asia conflict, local complaints about raw-material availability and operating costs, and a new Telangana rule intended to tighten how granite movement is measured and charged.

 

Illustrative export-market image.

A national export trend—and concentrated China exposure

A SEBI-filed prospectus drawing on DGFT and CRISIL Intelligence data reports India’s granite export volume falling from 5.186 million tonnes in FY2022 to 3.373 million tonnes in FY2025. China accounted for 82–86% of export volume over FY2022–FY2025. This is a national series, not a state-by-state breakdown, but it illustrates the exposure created by dependence on a major buyer.

Data point	Reported evidence	What it means
India export volume	5.186m tonnes FY22; 3.373m FY25	About 35% decline across the period, calculated from reported totals
China share by volume	82–86% in FY22–FY25	High concentration; sensitive to buyer demand and pricing
China share by value	77–79% in the same period	China’s value share is below its volume share

 

These national figures do not prove that each regional cluster experienced the same decline, nor do they isolate the China property slowdown from domestic demand, price competitiveness or logistics.

 

Illustrative transport and port image.

When shipping disruption reaches the factory floor

The New Indian Express reported in March 2026 that Chimakurthy exporters faced disrupted shipments during the West Asia conflict, with containers delayed or returning and reported additional charges of around ₹2 lakh per container. The report cited an industry estimate of roughly 2,500 containers exported monthly through Chennai. Treat that figure as reported industry information, not an independently audited port series.

A March 2026 Times of India report described Telangana granite consignments stranded at Kakinada port and quoted industry sources on higher freight and war-risk surcharges. A later report on Telangana’s granite trade described reduced shifts, higher road transport costs and fewer active quarry operations. These reports document a significant shock at the time; they do not prove every exporter remains closed or that conditions have not changed.

 

Illustrative quarrying image; not a photograph of a named site.

Telangana’s policy pivot: tonnes, destination and traceability

Telangana has announced a change to seigniorage collection for black and colour granite. From 1 November 2026, the system is to move exclusively to metric tonnes, ending the earlier dual basis of metric tonnes and cubic metres. Reported rates are ₹1,633 per tonne for black granite for export and ₹1,252 for domestic use; for colour granite, ₹1,354 for export and ₹1,176 for domestic use.

Granite type	Export ₹/MT	Domestic ₹/MT	Difference
Black	1,633	1,252	381
Colour	1,354	1,176	178

 

The reported rules classify granite moved outside Telangana—including to another Indian state—as export, while material used within Telangana is domestic. Transit passes are to be valid only for their stated purpose, and an online permit module is planned. The stated aim is transparency and reduced leakage. The reform’s success will depend on calibrated weighbridges, reliable digital records, audit trails and enforcement at quarry gates and transport routes.

This is a testable policy change, not a verdict. Different export and domestic rates also make destination classification and auditability important. The final article should verify GO 34 and the Gazette text directly.

 

Illustrative stone-processing image.

Andhra Pradesh: a different exposure, not a different industry

The Prakasam district administration identifies Black Galaxy granite as a signature local product. Reports from Chimakurthy have described export disruption, while a 2025 report on small and medium polishing units highlighted pressure from larger processors, competition for raw blocks and reduced work opportunities. The sector’s stress therefore cannot be reduced to overseas demand alone: access to raw material and the distribution of value between quarry owners, processors and exporters also matter.

Srikakulam and other Andhra Pradesh granite areas should be assessed separately rather than assumed to share Chimakurthy’s product mix or market exposure. Claims that a district exceeded royalty targets or that a specified number of factories is close to closure need a defined period, denominator and verifiable record.

 

Illustrative environmental-risk image; it does not document a specific violation.

Jobs, revenue and the environmental bill

The consequences extend beyond quarry owners. Cutting and polishing units employ operators, helpers, fitters, drivers and loading workers. When a unit moves from two shifts to one—or stops buying blocks—the shock can spread to transport, equipment maintenance and workers’ household spending. Employment estimates must distinguish direct jobs, indirect jobs and families dependent on the trade.

Revenue figures need similar care. Seigniorage, GST and other taxes are different streams. A drop in one cluster’s collections does not automatically prove a state-wide fall; collections above target do not prove worker incomes are healthy. Obtain monthly district-level collections, permit volumes, arrears and recoveries for at least three years.

Quarrying and stone processing can create dust, noise, waste rock, water-management and restoration challenges. Respirable crystalline silica is a recognised occupational hazard, but claims of specific silicosis outbreaks in named districts require medical or public-health evidence. Examine dust suppression, wet cutting, ventilation, worker screening, consent conditions and rehabilitation plans. Attribute complaints and distinguish allegations from proven violations.

The accountability questions

·       Will the online module record quarry, vehicle, declared weight, destination and final delivery in an auditable trail?

·       How many weighbridges are calibrated and linked to the system, and what happens during outages?

·       What were district-wise output, permits, seigniorage collections and arrears in FY24, FY25 and FY26?

·       How many quarries and processing units are operating, on reduced shifts, temporarily closed or permanently shut?

·       What are current export volumes and prices for Tan Brown and Black Galaxy, by destination and product form?

·       What share of export value reaches quarry owners, processors, exporters, transporters and workers?

·       What inspections, worker health screening and environmental remediation have been completed?

The Biz Masala view

Granite is not merely a commodity extracted from the ground. It is a regional industrial ecosystem. Its resilience depends on value addition, diversified buyers, reliable logistics and rules applied transparently. Telangana’s new fee system may help close measurement and permit loopholes, but success should be judged through audited collections, fewer mismatches and fair enforcement—not the announcement alone.

For both Telugu states, the larger challenge is to prevent a volatile export market from becoming a permanent jobs and investment crisis. That requires better data, more processing capability, credible environmental safeguards and a clearer picture of who benefits when the stone leaves the quarry—and who bears the cost when orders disappear.

Sources and verification notes

·       Deccan Chronicle, 13 Oct 2026 — Telangana metric-tonne reform and reported rates — https://www.deccanchronicle.com/amp/southern-states/telangana/telangana-shifts-granite-seigniorage-fee-exclusively-to-metric-tonne-system-from-nov-1-1995592

·       V6 Velugu — Telugu report on rates and implementation — https://www.v6velugu.com/telangana-granite-seigniorage-fees-revised-per-ton-rates-effective-november-1

·       Telangana Mines and Geology — Minor Mineral Concession Rules — https://mines.telangana.gov.in/MinesAndGeology/Documents/Rules/TMMC_Rules_1966.pdf

·       SEBI-filed prospectus with DGFT/CRISIL granite export data — https://www.sebi.gov.in/sebi_data/attachdocs/dec-2025/1765444608922.pdf

·       World Bank WITS / UN Comtrade — India 2025 crude granite exports — https://wits.worldbank.org/trade/comtrade/en/country/IND/year/2025/tradeflow/Exports/partner/ALL/product/251611

·       The New Indian Express, 11 Mar 2026 — Chimakurthy export disruption — https://www.newindianexpress.com/states/andhra-pradesh/2026/Mar/11/granite-exports-from-chimakurthy-come-to-halt-amid-west-asia-war

·       Times of India, 14 Mar 2026 — Telangana consignments at Kakinada port — https://timesofindia.indiatimes.com/city/hyderabad/west-asia-tensions-hit-t-granite-exports-consignments-pile-up-at-kakinada-port/amp_articleshow/129563583.cms

·       Prakasam district administration — Black Galaxy Granite ODOP — https://prakasam.ap.gov.in/granite-black-galaxy-odop/

·       Times of India, 10 Jun 2025 — small and medium polishing units in Prakasam — https://timesofindia.indiatimes.com/city/vijayawada/granite-polishing-units-in-prakasam-fear-closure/articleshow/121734614.cms

Verification note: Factory counts, employment totals, health impacts, revenue changes and illegal-mining claims are not treated as independently established unless tied to named sources. Obtain current district-level operating-unit counts, official GO/Gazette text, latest export data and responses from government and industry before publication.

Chart notes: National export data is not a proxy for either state’s exact performance. Reported rates should be confirmed against the official amendment.

 

BIZ MASALA

Business. Markets. People. Insight.

Murthy ASR

 

BIZ MASALA

Business. Markets. People. Insight.

Murthy ASR