Sivaganga graphite plant slashes production by half as ₹30 crore stock remains unsold
The Sivaganga graphite plant has reduced its production by half due to a year-long sales stagnation, resulting in a stockpile of unsold graphite valued at ₹30 crore. The plant, operated by Tamil Nadu State Minerals Limited, has seen a significant drop in output, leading to layoffs and concerns about a potential shutdown. Local workers are advocating for government intervention to address the inventory issue and promote the establishment of downstream industries to create jobs.
- ▪The Sivaganga graphite plant has a stockpile of 3,600 tonnes of unsold graphite worth ₹30 crore.
- ▪Production has been cut by 50%, with daily output dropping to 10 to 12 tons.
- ▪Workers are calling for government intervention to clear the unsold inventory and create local downstream industries.
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Due to a year-long sales stagnation, the Sivaganga plant is holding about 3,600 tonnes of unsold graphite approximately valued at ₹30 crore, forcing management to slash production by half. Operated by the Tamil Nadu State Minerals Limited (TAMIN) since 1994, the Komalipatti graphite plant near Sivaganga employs a workforce of 130 permanent staff and 30 contract laborers. Renowned for its premium quality, the graphite produced here historically enjoyed strong market demand. The mineral is essential for manufacturing pencils, friction modifiers, steel furnaces, and high-heat resistant components for aircraft wheels. Due to the absence of local graphite industries in Tamil Nadu, procurement has historically driven interstate trade, drawing buyers from regions like Andhra Pradesh.
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