About 3,600 tonnes of graphite valued at around ₹30 crore remain unsold at a plant in Sivaganga district, forcing the management to slash production by half.
Operated by Tamil Nadu State Minerals Limited (TAMIN) since 1994, the Komalipatti graphite plant employs 130 permanent staff and 30 contract laborers. Renowned for its premium quality, the graphite produced here has historically enjoyed a strong market. The mineral is essential for manufacturing pencils, friction modifiers, steel furnaces, and high-heat resistant components for aircraft wheels.
Due to the absence of graphite industries in Tamil Nadu, procurement has historically driven interstate trade, drawing buyers from regions like Andhra Pradesh. The supply chain has recently stalled, as controversial decisions by high-ranking TAMIN executives have caused buyers to hold back for the past twelve months, said industry sources.
As a result, a 3,600-ton stockpile of graphite, valued at ₹30 crore, has remained unsold for a year, with the bagged material now degrading in storage. While the plant has an annual capacity of 700 tons and an optimal daily target of 28 tons, sluggish sales have forced a 50% drop in output. At present, daily production has plummeted to just 10 to 12 tons, the sources added.
The downturn has already resulted in layoffs of contract workers. If the stagnation persists, a total shutdown of the plant is imminent, threatening the livelihoods of the remaining permanent staff. Consequently, there are growing calls for Minister of Mines and Minerals T. K. Prabhu to inspect the facility and intervene to clear the unsold inventory.
According to workers, setting up local downstream factories to process the graphite would create thousands of new jobs in Sivaganga. The regional industrial ecosystem would also revive the main plant’s production, further expanding the job market.
When TAMIN officials were asked about this, they said, “We are taking steps to sell the graphite.”
Sivaganga MLA A. Kulanthai Rani inspected the graphite plant recently.
Speaking to reporters there, she said: “Traders from other States buy the graphite available in Sivaganga region and run ancillary industries. Steps will be taken after speaking with the Chief Minister to start the same ancillary industries in Sivaganga. Through this, numerous youths will get employment opportunities.”