'License system in marble industry a real barrier for SMEs'

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Saurabh Gupta | 20 Feb, 2016
The License system in marble industry has been a real barrier for the SMEs & small traders, marble importers/stakeholders said in a meeting with the Commerce and Industry Minister Nirmala Sitharaman in the national capital on Thursday.

The Minister has assured marble importers/stakeholders to consider for formulating a free trade policy for marble industry in a meeting with marble stakeholders across India.

The stakeholders discussed various issues relating marble industry prominently license system and import policy. The representative urged for abolition of License System and requested to formulate Free Trade Policy in the industry.

"The License system in marble industry has been a real barrier for the SSI's & small traders. Out of more than 5000 marble stakeholders, only 472 big marble processors are availing license quota of 8 Lakh MT., resulting in increasing monopoly in the industry. Our main objective of meeting minister is to request to remove License System and bring a new transparent policy," said Sandeep bhardwaj, President-Delhi marble dealers associations.

Marble industry has been suffering because of misuse of License system. It is better to open the industry so that finance, new technology and new market will help to grow the industry. It has been observed that only 40 percent holders are importing rough marble blocks under "actual user conditions" and the rest sell their license in the grey market with hefty premium of Rs. 5000-7000 per MT, hence creating huge black money.

The marble dealers also suggested to remove the MIP (minimum import price) as the Rupee is depreciating more than 50 percent in last few years, so can check on over invoicing by importers and create barrier on illegal route of money laundering as recommended by the SIT appointed by the supreme court. The associations accepted the current duty structure and wanted to remove the present restrictions and impose tariff measures instead.

License system is becoming the hurdle and creating the shortage of raw material which is the worst effect on natural stone processing industry since traders are being forced to import finished marble from other countries. If rough marble is allowed under OGL result in decrease the import of finished goods, so we can save huge forex since the "value addition" being done in our country and more over we will become more competitive by re-exporting finished marble and earn huge forex gain by leveling playing field for the Indian Industry to compete in the International market Said Parveen goel , Chairperson, Delhi marble dealers association.

In a joint memorandum submitted to the Minister, many of the traders associations all over India, said that these changes would assure easily availability of raw materials provide good opportunity for reopening of close and sick marble processing units & hence create more & more job opportunities in rural areas to the unskilled labour in the country.

Pan India basis policy benefit to the marble entrepreneurs across the country, so can save on high cost of transportation and saving on maintenance of highways which is one of the bottleneck growth & succeed in achieve our vision development model all over nation, ultimately benefit cheaper availability of marble to the consumer ," the memorandum said.

Commerce and Industry Minister, Sitharaman said in a tweet, "Met representatives of marble dealers associations to discuss import policy of rough marble and travertine blocks and marble slabs".