Inconsistent state policy, indecision on declaring granite as a major mineral and delay in bringing it under a national legislation, uncertainty about the availability of raw materials for EOUs owing to auction system in states like Tamil Nadu and Karnataka and Naxalite menace in Andhra Pradesh are said to be a few of the reasons for the dismal show.

Even the hope to hit the target of 50 per cent finished products exports by the turn of the century may not materialise because of recession in Japan, collapse of Korean economy and with cheap alternatives from China flooding the Japanese and European markets.

Meanwhile, Tamil nadu Minerals (Tamin) chairman and managingdirector LK Tripathy has suggested that major industry associations like FICCI or CII should study the plight of the granite industry to find out the reasons for the decline and suggest measures for development. Tamil Nadu was the pioneer of granite export industry in the early 1970s. It was followed by Kranataka, Andhra Pradesh and the rest of India. The industry aroused such national enthusiasm that by 1994-95 there were 990 granite exporters, 195 EOUs and 242 exporters spread all over the country, though most of them were in Tamil Nadu, AP, Karnataka and Rajasthan.

According to industry sources, at least 40 per cent of these units are no longer in operation. Only financially sound and reliable operators with assured foreign customers have been able to survive. Non-EOUs catering to the domestic markets are also still in business.

According to the Confederation of Export Oriented Units (CEU) president R Veeramani, the EOUs are finding it difficult to get good quality rough blocks owing to theirunregulated exports to the foreign companies.

"Unregulated export of granite blocks has two disadvantages. On the one hand they do not fetch their real price. On the other, the EOUs are forced to compete with Indian granites abroad where foreign companies sell finished products made from Indian blocks," according Gem Granites general manager R Vedantham.

However, rough block exporters have denied this vehemently saying there is no shortage in the market. "India's granite resources will last for more than 200 years and the quarry owners have plenty of blocks for sale." Rough blocks exporter JP Sarathi Raam says the major problem faced by the granite industry is the cash crunch experienced by the EOUs.

"They are not able to pay promptly to quarry owners. If the EOUs are ready to pay international prices they will get any variety and any quantity of material. There is no shortage."Industry observers also say there is no need for any regulation as there is no shortage. Any such conditions will jeopardisethe entire industry, they feel. Besides the four main colours -- Ruby Red of Karnataka, Black of Tamil Nadu, Black or Star Galaxy of Andhra Pradesh and Kerala White -- there are granites with over 80 various colours and shades and hardness. Recently the yellow variety mined mainly by Tamin in Sivakasi has caught the fancy of US buyers and is fetching good prices. The little known and inferior `Jhansy Red' of Rajasthan also is becoming popular and is emerging as a substitute for the costly Ruby Red of Karnataka.

EOUs can handle only a fraction of the abundant variety of granites in the country. The plea for regulation is only to create an artificial surplus and reduce prices, they say.