According to KS Subramaniyan, President, South India Marble and Stone Dealers' Association, and partner of Chennai-based Redsun Marbles, only 10 truckloads of marbles of the daily arrivals of 65-70 truckloads are for traders.

This is in sharp contrast to the picture prevailing between 1985 and 1991, ``the golden period of marble trade in TN, when most of the 20-25 trucks that entered the state were for traders,'' says Subramaniyan, adding that if the current trend continued, the 20 major dealers and the 50-odd small traders in the state will be out of business by the turn of the century.This is due to the tax disadvantage faced by dealers in the state, which has led to an increasing amount ofdirect purchases from the country's major marble producing centres in Rajasthan.

Traders say that anybody with an approved plan can purchase any amount of marble from Rajasthan paying, 16 per cent central sales tax (CST).

They, on the other hand, acquire stock paying four per cent central sales tax. Though the CST at the source is apparently higher, direct purchase is profitable as the consumer is spared from the dealers's margin and local sales tax in the state.

Close to 50 per cent of the cost of marble (ranging from Rs 18 to Rs 150 per square foot) is transportation cost. TN sales tax on marble is 20 per cent, which is calculated inclusive of this cost. Hence, the savings made by direct purchase are be substantial.

Apart from eliminating genuine buyers, this has also led to a lot of unauthorised trading, dealers claim.

``With the one and the same plan, sometimes even with outdated plans, people bring marbles to the state and sell it without paying sales tax. Thus a major revenue source for thestate government is lost daily.

It could collect five times more than the present revenue from marble trade with proper controls on direct purchase and cut in ST rate from 20 per cent to 12-13 per cent'', Subramaniyan claimed.

There is also competition from granite. The sales tax on marble is nine per cent more than that on granite (11 per cent).

Though there is price advantage over granite, the higher ST affects the sale of marbles, he said.

Consumers are unwilling to pay the ST and often prefer a trade deal without ST.

The final bargain would be underbilling and price adjustments to bring ST to the bare minimum.

``The marble dealers' request to the State government is to bring down ST to 12-13 per cent and regulate the racket of direct purchases, '' Subramaniyan said.

There are about 50 popular verities of marbles. Some of them are: Adangi (Doomgri & Kumari), Albetta (white and brown), Andhi Pista, Indo-Italian, Rajnagar white(spotted and pure), Haspore grey, Haspore pink, Udaipur pink, KesriaGreen, Udaipur green, Makrana Pink and Morvad. While 95 per cent of the marbles in India are from Rajasthan, Ambaji white and green are mined in Gujarat.

The marble miners have to pay an excise duty of 20 per cent, which has been hiked to 30 per cent in the present budget.

``Hence a price increase is round the corner'', Subramaniyan said.