ONGOLE: The Chimakurthy Galaxy Granite industry exporters are facing financial and logistical difficulties due to the war situation prevailing in West Asia and Middle East countries.
With the escalating conflict between Israel, USA and Iran, international water transport facilities have been badly affected as Iran closed the Hormuz waterway, impacting granite slabs and polished granite tiles exports to Middle East and other countries through the Chennai port.
Granite industry exporters are suffering significant financial burdens, having been levied lakhs of rupees as ‘war cess’ per container. Although domestic market is stable, the Chimakurthy Galaxy Granite Industry used to export granite raw blocks and boulders to China and processed and polished granite slabs and tiles to West Asian countries like Iran, Kuwait, Saudi Arabia, Iraq and Qatar, and to Vietnam.
On average, around 2,500 granite containers are exported to these foreign countries through sea-ways from Chennai port every month from Chimakurthy-based granite industries. Most exports are polished and processed granite slabs and small-sized granite blocks.
Due to the Israel-US-Iran war, exports to those countries have been completely stalled for the past 10 days, with uncertainty prevailing on sea transportation to most West Asia and Middle East countries.
Containers are stalled mid-way, and already marked granite blocks are piled up in industries, worrying exporters.
“Some of our containers having granite slabs and tiles booked at Chennai port were halted in various ports as the respective ships anchored there due to the escalating war situations in the West Asia region. Some of them are returning. Further, the respective port authorities imposed additional charges in the name of ‘war cess’, which has become a financial burden to our exporters. They are charging around Rs 2 lakh per container, and it is being implemented even for last month’s consignments,” a granite exporting company owner from Chimakurthy told TNIE on Tuesday.