Hyderabad: The ongoing conflict involving Iran, the US and Israel has begun to hit Telangana’s granite industry, disrupting exports and leaving large consignments stranded at Kakinada port in Andhra Pradesh.Rising shipping costs and restrictions on cargo vessels navigating sensitive international waters have halted the movement of containers carrying granite cubes, marble, slabs and tiles meant for overseas markets. The situation has triggered serious concern among traders and workers in the granite hubs of Karimnagar and Khammam districts, where the industry supports thousands of livelihoods. Industry sources say nearly 80% of the granite cubes, slabs, marble and tiles produced in the state are exported, while only about 20% are sold within India. Telangana’s granite finds buyers in countries, including Japan, Iraq, Qatar, Oman, the US, China, Iran, Kuwait, Saudi Arabia, Canada and Korea. Among these markets, China alone accounts for nearly half of the exports. Severe blowGranite from Karimnagar and Khammam districts, particularly the internationally popular tan brown and maple brown varieties, enjoys strong demand in both domestic and global markets. Any prolonged disruption in exports could therefore deal a severe blow to the region’s granite sector. Exporters say the spike in shipping costs has already made transportation economically unviable for many traders. The freight rate for transporting granite from Kakinada port to China and the Middle East has risen sharply from about $20 per tonne to nearly $29 per tonne. The increase has significantly dampened demand from overseas buyers, forcing exporters to delay shipments. As a result, thousands of tonnes of granite slabs and tiles are now piling up at Kakinada port, awaiting shipment as exporters struggle with rising costs and uncertain shipping routes. Shipping companies have begun imposing steep war-risk surcharges on containers passing through the Strait of Hormuz, increasing transportation costs significantly. Traders say the additional charges can go up to ₹2 lakh per container, placing a heavy financial burden on exporters. Faced with these rising costs, several cargo ships carrying granite slabs and tiles have reportedly turned back instead of proceeding through the high-risk shipping routes. Exporters say that if Iran allows exemptions or relaxations for Indian cargo vessels, it could help clear the backlog of containers currently stuck at the port. Quarry operations also hit?The crisis has also raised fears about potential disruptions in quarry operations. Industry insiders warn that if bulk diesel supplies are restricted — a possibility being discussed amid the geopolitical tensions — granite quarrying activities could come to a halt, leaving thousands of workers without jobs. The prolonged disruption has left traders worried about mounting losses and the possibility of further slowdown in the state’s granite trade if the conflict continues. GFXIn the joint Karimnagar district alone, there are 414 granite quarries, with 292 located in Karimnagar, in addition to 200 polishing units.Other districts like Rajanna Sircilla, Peddapalli, and Jagtial also host multiple quarries, collectively providing direct employment for around 90,000 people and indirect jobs for another 50,000.Khammam district boasts 70 granite quarries and 200 polishing units, supporting direct and indirect employment to manyQuarries typically require about 1,000 liters of diesel daily. With bulk diesel sales already suspended, production at the quarries is grinding to a halt.
