West Asia conflict paralyses South India’s granite exports

The ongoing war in West Asia has left a serious impact on international trade, which in turn has affected various domestic sectors in India. The black granite industry in southern states such as Andhra Pradesh and Karnataka, which has a high demand in the Gulf and the West, has been no exception.

The ‘Black Galaxy’ granite industry in Chimakurthy in Prakasam district of Andhra Pradesh — once a cornerstone of India's stone export trade — is reeling under the impact of the conflict, which completed two weeks on Friday (March 13).

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Orders have been cancelled, shipments are stuck at various ports of the Gulf region, including the United Arab Emirates, and exporters are being hit with war cess charges of up to Rs 2 lakh per container per day.

The Gulf countries have put 40 per cent of ‘Black Galaxy’ granite orders on hold, making the situation worse for the exporters in India.

Granite mining in Chimakurthy started in 1983 when rare black granite deposits were discovered in the nearby Ramateertham village — an area that had previously been dismissed as unfit even for cattle grazing.

By 1990, the industry had gone international. The stone's distinctive gold flecks on its jet-black surface caught the attention of Chinese buyers, who named it “Black Galaxy”.

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From 2005 to 2015, the industry hit its peak, with exports to China, Italy, Vietnam, the Gulf, Europe, and the United States.

Today, over 40 major quarries and 1,600 processing units operate across roughly 500 acres, supporting 20,000 direct jobs and over one lakh indirect livelihoods. The government earns Rs 200 crore annually in royalties, with actual trade estimated at three times that figure.

Huge granite consignments stranded

Around 60,000 cubic metres of granite are extracted from Chimakurthy every month. Since January, 1.5 lakh cubic meters have been exported — but half of that tonnage is now stranded at ports across the Gulf, West Asia, and beyond, after the war began.

Ships cannot move through the Strait of Hormuz, the critical waterway linking India to West Asia, Europe, and beyond. Direct shipping from Chennai to China — normally a 12–18 day journey — has also been disrupted, with services suspended or rerouted, causing container shortages and surging freight costs.

Shipping a single 20-foot container from Chennai to Shanghai or Xiamen in China now costs Rs 1.4–2 lakh, excluding the war risk premium being levied on top.

“We cannot bring the ships back, and we cannot move them forward. Every day, war costs keep mounting,” an exporter from Chimakurthy told The Federal on the condition of anonymity.

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With 70–80 per cent of exports at a standstill, the industry has been forced to pivot to domestic sales — a far smaller market for a stone prized globally. Galaxy Granite commands Rs 1 lakh per cubic metre, compared to Rs 40,000 for other varieties such as Kuppam Green or Silver Waves.

Chittoor granite cluster takes hit

The crisis is not limited to Chimakurthy. In Madanapalle, Punganur, and Kuppam belt in Chittoor district — the state’s second-largest granite cluster — 60 per cent of quarries have shut down. Rising royalties (Rs 7,000 per cubic metre), diesel costs, labour charges, and port logistics have made exports unviable, even in calmer times.

“It's not just the war. Royalties, fuel, labour — the margins were already gone,” said Sai Prasad Reddy, a trader from Madanapalle.

Karnataka's Chamarajnagar affected

The impact has also been felt in Karnataka. The premium black granite industry in the state’s Chamarajnagar district — prized in markets across the US, Europe, and the Middle East — has also taken a toll. Shipping disruptions have frozen exports entirely, leaving quarry owners with stock they cannot move and workers with uncertain futures.

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Mining currently spans 455 acres in the Chamarajanagar district, generating over Rs 121 crore in royalties over the past four years. Officials now fear a 15 per cent revenue drop — a loss that would ripple across thousands of quarry workers already living on the edge.

“This has dealt an unbearable blow to an industry that was just recovering from Covid and the Russia-Ukraine war,” said G M Hegde, president of a granite industries’ body in Chamarajanagar.

The industry that turned barren rock into a billion-rupee business is now waiting for the guns to fall silent.

(With inputs from The Federal Andhra Pradesh and The Federal Karnataka.)