Challenges in international trade of minerals from south rajasthan

Challenges In International Trade of Minerals From South Rajasthan, Pallavi Mehta, Ankita Vaish,
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www.iaeme.com/ijm.asp 39 editor@iaeme.com
1
Associate Professor, Faculty of Management, Pacific Academy of Higher Education and Research
University, Udaipur (Raj)
2
Research Scholar, Faculty of Management, Pacific Academy of Higher Education and Research
University, Udaipur (Raj)
ABSTRACT
International Trade is the exchange of capital, goods and services across international borders
or territories. In most countries, such trade represents a significant share of Gross Domestic Product
(GDP). Increasing international trade is crucial to the continuance of globalization. There should be a
balance between exports and imports otherwise the trade deficit will suppress the economic growth
of a country. The global mining industry drives more than 45% of the world’s gross domestic
products that facilitate growth of most of industries.
The use of minerals has been instrumental in raising the standards of living mankind. The
sophisticated world of today is largely the result of enlarged use of minerals. India produced as many
as 86 minerals. The contribution of mining industry to India’s GDP increased from 1.9% in the
Financial Year (FY) 2010 to 2.3% in the FY 2011. Rajasthan - A Mineral Rich State is geologically
and mineralogically so endowed that it is called museum of minerals. 79 minerals are available in
Rajasthan out of which 25 nos. hold monopoly at the national production. Quartz and Feldspar are
important industrial mineral produced from Rajasthan in substantial quantities. 62% of the country
production of feldspar is share by Rajasthan, similarly, 29% of country’s production of quartz is
shared by the state. Both the minerals are important raw materials for ceramic, semi-conductor and
glass industries. Both the minerals are produced and processed in substantial quantity from South
Rajasthan.
Key Words: Quartz, Feldspar, International Trade, Challenges, Opportunities, South Rajasthan
RAJASTHAN – A MUSEUM OF MINERALS
The State is geologically and minerologically so endowed that it is called as museum of
minerals. Since independence, during last fifty years phenomenal progress in mineral field has been
made in the state. Not only the production of minerals has increased manifold times but also many
more minerals have been discovered and are being exploited on commercial scale. In the country,
CHALLENGES IN INTERNATIONAL TRADE OF MINERALS
FROM SOUTH RAJASTHAN
Pallavi Mehta1
, Ankita Vaish2
Volume 6, Issue 6, June (2015), pp. 39-47
Article ID: 10120150606005
International Journal of Management (IJM)
IAEME: http://www.iaeme.com/IJM.asp
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
IJM
© I A E M E

Rajasthan State occupies an important place in mineral production. In Rajasthan, a total of 79
minerals are available out of which 58 minerals are being commercially produced.
Rajasthan is the sole producer of Garnet (gem variety), Jasper and Wollastonite in the country.
Almost entire production of zinc (concentrate), calcite, asbestos and gypsum in the country are
reported from Rajasthan. Besides, Rajasthan is also the leading producer of ball clay (40%), feldspar
(70%), fluorite (graded) (59%), Kaolin (44%), lead concentrate (80%), ochre (72%), phosphorite
(79%), silver (54%), steatite (85%), barytes (53%), copper (34%), quartzite (33%) and silica sand
(21%). The percentage contribution of minerlas at national level from state of Rajasthan is shown in
Table 1.
Table.1: Percentage contribution of minerals at national level from state of Rajasthan
S.
No.
Mineral / Metal
% of India’s
production
1 Wollastonite 100
2. Zinc-Concentrate 99
3. Lead Concentrate 95
4. Silver 95
5. Gypsum 95
6. Marble 90
7. Calcite 90
8. Ochres 90
9. Soapstone 90
10. Rock Phosphate 85
11. Bentonite 80
12. Fuller’s earth 74
13. China Clay 70
14. Ball Clay 70
15. Sandstone 70
16. Flagg Limestone 70
17. Feldspar 62
18. Mica 42
19. Copper 40
20. Quartz 29
21. Granite 23
22. Limestone 20
Source: India, Mineral Wealth of Rajasthan, Department of Mines and Geology, Shastri Circle,
Udaipur, March-2012
MINERAL POTENTIAL OF SOUTH RAJASTHAN
Udaipur & Rajsamand districts lies in South Rajasthan and is surrounded by potential
mineralized belts. Minerals like Quartz, Feldspar, steel grade Dolomite, Clay, Ochre’s, Soapstone,
Zinc ore, Wollastonite, high grade Limestone, Marble etc are abundantly found around Udaipur &
Rajsamand districts. Apart from large number of mineral based Industries, many big Mining
Companies like Hindustan Zinc Limited, Golcha Group, Wolkem India, JK Cements, Birla Cements,
Aditya Birla Group, Lafarge etc are situated nearby. The State Government’s Directorate of Mines

and Geology and state PSU, RSMML are also headquartered in Udaipur which make this district an
important mineral hub in the Country’s mineral map.
Both these districts are important for integrated development of South Rajasthan because of
following factors:-
• Delhi-Mumbai Industrial Corridor (DMIC) runs through these two districts. It shall provide
immense opportunities for transportation of minerals to adjoining states as well as to Ports;
• Both the districts are very well connected with National & State Four Lanes and Railway
Broad Gauges;
• These districts have adequate infrastructural facilities for establishment of additional mineral
based Industries;
• These districts are quite nearer to Ports as compare to other place of North India; and
• Large resources of minerals have potential to accelerate International Trade from this region.
QUARTZ & FELDSPAR POTENTIAL OF RAJASTHAN
Mining Leases
Quartz and Feldspar minerals are two important industrial minerals produced from Rajasthan.
The feldspar production from the state contributes about 62% of the total National Production while
quartz production shares about 29% of the country’s production. The district wise number of mining
leases of quartz, area under lease, production, sale value, revenue and employment is shown in Table
2.1 While in Table 2.2, similar details about Feldapr are mentioned.
Table 2.1: Quartz at a Glance in Rajasthan
S.No. Office
Leases
(No.)
Area
(in Hector)
Production
(Tons)
Sale Value
(Rs.)
Revenue
(Rs.)
Employment
(Nos.)
1 ME Amet 485 2397 265617 53123400 25598000 2425
2 ME Ajmer 181 1167.58 96703 38681200 11106500 1411
3 ME Bhilwara 0 0 72180 25263000 0 0
4 ME Bijoliya 2 9.72 0 0 45000 0
5 ME Chittorgarh 28 126.16 7174 2152200 3019428 100
6 AME Dausa 1 99.39 0 0 15000 10
7 ME Jaipur 31 135.24 1500 262500 1209000 100
8 ME Jodhpur 3 223.59 0 0 0 0
9 ME Jhunjhunu 1 4.91 11200 3360000 538000 20
10 AME Kotputli 8 138.75 0 0 104000 0
11 AME Neem Ka Thana 97 864.41 566200 131358400 18627000 500
12 ME Sirohi 15 66.6 6930 1801800 1069000 270
13 AME Tonk 58 229.64 154652 36807176 6222313 140
14 ME Rajsamand II 200 2273.13 347854 86963500 19132000 506
15 ME Makrana 3 14.36 0 0 15000 0
16 AME Nimbahera 2 9.75 0 0 5500 6
17 ME Pratapgarh 8 32 0 0 16000 0
18 ME Rajsamand I 106 489.86 108103 34809166 4204000 625
19 ME Sojat City 23 182.32 84550 25365000 2537000 144
20 AME Sawai Madhopur 7 545.33 36923 7171274 1488187 85
21 ME Udaipur 45 1154.81 29542 7385588.235 1004440 155
Total 1304 10164.55 1789128 454504204 95955368 6497
Source: DMGR, Govt. of Rajasthan, Udaipur

Table 2.2: Feldspar at a Glance in Rajasthan
S.No. Office
Leases
(No.)
Area
(in Hector)
Production
(Tons)
Sale Value
(Rs.)
Revenue
(Rs.)
Employment
(Nos.)
1 ME Ajmer 376 2057.55 324040 90083120 24319459 3112
2 ME Alwar 1 4 0 0 22000 0
3 ME Bhilwara 671 3658.56 772361 214716358 42081529 2858
4 AME Gotan 1 4.5 11669 3243926 230000 5
5 ME Jaipur 0 0 2215 615770 0 0
6 ME Jhunjhunu 20 90.2 26994 7504332 3058000 200
7 AME Kotputli 39 186.55 301333 83770666 10848000 360
8 AME Tonk 0 0 15200 4225600 608000 55
9 ME Sikar 7 33.49 27426 7624428 7600000 30
10 ME Udaipur 19 919.64 187297.2 52068622 5993510 86
Total 1134 6954.49 1668535.33 463852822 94760498 6706
Source: DMGR, Govt. of Rajasthan, Udaipur
RESEARCH METHODOLOGY & SAMPLE SIZE
The selected 108 mineral mines and mineral based industries (viz. Ball mills, grit plants,
pulverizers) were visited and the responses of the owners were collected with the help of a structured
Schedule
The Tools & the Techniques adopted include Statistical Tools like“Z” Test and Chi Square
for hypothesis testing.
OBJECTIVES OF THE STUDY
1. To explore challenges in the international trade of minerals and mineral commodities
2. To ascertain the extent of knowledge of mine owners and the mineral based industry owners
about export & import rules, quality parameters, value addition, etc.
3. To study the efforts made for promoting mineral products in international market
HYPOTHESIS TESTING
Challenges faced in International Trade
H01 There lie no challenges in the International Trade of quartz and feldspar from South
Rajasthan.
A few parameters were identified by personal interview and than administered over
respondents. The responses are shown in Table 3.

Table 3.Challenges faced in International Trade
Statement High Medium Low Rank*
Payment delay from overseas buyers and distributors 73.15 12.96 3.70 1
Foreign government rules and regulations 63.89 23.15 6.48 2
Inadequate export infrastructure 62.04 19.44 12.96 3
Complexity of export documentation requirements 60.19 24.07 2.78 4
Risk of selling abroad 72.22 3.70 0.00 5
Insufficient support provided by the government 54.63 22.22 9.26 6
Lack of Professionalism of firm 58.33 14.81 12.04 7
Insufficient information about overseas markets 64.81 3.70 12.96 8
Lack of Government assistance in overcoming export barriers 58.33 9.26 13.89 9
Lack of "experts" in export consultancy 46.30 25.00 11.11 10
Difficulty in making contacts in foreign markets 54.63 12.04 11.11 11
Competition in Domestic Market 41.67 25.00 15.74 12
Poor organization of firm's export department 44.44 18.52 13.89 13
High Cost of production as compared to other countries 21.30 46.30 26.85 14
Ineffective communication with overseas customers - Language
and Culture barrier 50.00 5.56 18.52 15
Government Policies 35.19 25.93 21.30 16
Lack of export marketing research 49.07 8.33 14.81 17
Difficulties in transporting the product exported 37.96 17.59 26.85 18
Inability to self finance export 41.67 13.89 19.44 19
Exchange rate fluctuations 36.11 8.33 46.30 20
Corruption in Government Institutions 25.93 30.56 31.48 21
Inadequate promotion in export markets 42.59 12.96 15.74 22
Lack of personnel qualified in exporting marketing activities 37.96 20.37 12.96 23
Lack of sufficient number of ports 36.11 8.33 40.74 24
High cost of capital to finance export 30.56 25.00 18.52 25
Strong international competition 33.33 14.81 26.85 26
Scarcity of raw material 16.67 21.30 58.33 27
Unpredictable currency exchange rate fluctuations 21.30 13.89 56.48 28
Scarcity of good quality of material 12.04 22.22 62.04 29
Lack of Competitive prices 21.30 29.63 19.44 29
Red tape in government institutions 23.15 20.37 25.93 31
Lack of demand in Foreign Market 0.93 14.81 76.85 32
* Ranked according to severity of problems.
The various parameters of the above table cover a few laid objectives of this study. The
biggest challenge today the entrepreneurs are facing in the export business, is delay in payment from
overseas buyers and distributors. Findings ranked this factor as No. '1' it is followed by non-
awareness of foreign trade rules & regulations. This factor has been ranked as No. '2'. It is then
followed by inadequate infrastructure which has been ranked as No '3'. Complexity of export
documentation requirement factor has been placed at rank No. '4' and the risk of selling abroad has
come at rank No. 5. The another important factor indicated in findings is insufficient support
provided by the government which has been ranked as No. '6'. Lack of professionalism of firm is
another important lacuna which is hindering export business. This factor has been ranked as No '7'.
The other important factors and their ranking have been analyzed clearly in the above table. From the
above analysis, it is quite clear that:
Payment delay from overseas buyers and distributors is a major hindrance for accelerating
export but simultaneously it is coupled with non taking risk attitude of the entrepreneurs for
selling abroad on one hand and on the other, lack of professionalism of the firm. Moreover,

governmental support can act as catalyst in mitigating such problems. Every access in
understanding of rules & regulations for export will be an added advantage for which
government should arrange workshops, camps at various district headquarters and at RIICO
industrial Clusters.
Inadequate infrastructure facilities are putting significant hindrance in export business.
Rajasthan is not having any port. Shipping transport is cheapest and therefore, central
government should provide adequate port facilities for Rajasthan mineral exporters.
Lack of 'experts' in export consultancy is another important factor which may be overcome by
arranging short term courses for entrepreneurs for understanding of export procedure.
Thus from the above discussion it is clear that fair amount of challenges exists for exporters of
minerals and our our hypothesis that there lie no challenges in the International Trade of quartz
and feldspar from South Rajasthan is rejected.
KNOWLEDGE OF EXPORT-IMPORT RULES OF MINE OWNERS
H02 The mine owners and factory owners have fair knowledge of export & import rules, quality
parameters, value addition etc.
As far as knowledge level is concerned out of total 108 respondents only 45.4% found having
good to very high knowledge about export rules etc. rest were found to have very low level of
knowledge. It was further tested statistically and it is found that this figure is significantly low (Z =
304.17, p <0.001). Thus, our hypothesis that the mine owners and factory owners have fair
knowledge of export & import rules, quality parameters, value addition etc. is rejected and it is
concluded that the level of knowledge of mine and factory owners about export-import rules, quality
parameters etc. is significantly low.
Efforts made for promoting mineral products in international market (based on Chi-square
Test)
H03: Efforts made by exporters and non-exporters of minerals to promote their products are same.
The “Chi-square” test is an important test among the several tests of significance developed by
statisticians. As a non-parametric test it can be used to determine if categorical data shows
dependency or the two classifications are independent.
It was asked from the respondents that what efforts they make for promoting their products,
then it was compared among exporters and non-exporters. List of methods adopted in promotion of
products is given in the Table and Figure below:
Table 4: Methods used in promotion of products (Findings based on 'Chi Square' test)
Methods used for promoting
mineral products
Exporters
Non-
Exporters
χ2 Result
Participation in International fairs
and Exhibitions
70.21 0.00 61.675 ***
Direct Mail 93.62 81.97 3.193 NS
Website developed 76.60 24.59 28.808 ***
E-marketing/Ads on websites 29.79 4.92 12.379 ***
Advertising in Print media 27.66 0.00 19.181 ***
Through Agents 82.98 91.80 1.952 NS
Trading Web Portals 57.45 13.11 23.818 ***
Samples 80.85 77.05 0.229 NS

Figure 1: Methods used in promotion of products (based on 'Chi Square' test)
It is evident from the table and the Figure above, that participation in international trade fairs
and exhibition, website development, e-marketing, ads in print media and trading through web
portals are methods heavily used by exporters as compared to non-exporters. All the χ2
values were
highly significant (p<0.001). Non-significant association was found regarding direct mail, selling
through agents and sample giving are methods adopted extensively, by both exporters as well as non-
exporters of minerals. Further it was tested whether is there any significant difference in the efforts
made by exporters and non-exporters of minerals? A highly significant difference (Z = -0.747, p <
0.001) is observed. Efforts made in promoting products to get customers is more by exporters as
compared to non-exporters.
Table 5: Efforts made in promoting products to get customers(based on 'Z' test)
Exporting
Minerals
N Mean SD Z Result
No 61 2.93 0.98
-7.47 ***
Yes 47 5.19 1.88
0.0 20.0 40.0 60.0 80.0 100.0
Participationin Internationalfairsand Exhibitions
DirectMail
Websitedeveloped
E-marketing/Adson websites
Advertisingin Printmedia
ThroughAgents
TradingWebPortals
Samples
70.21
93.62
76.60
29.79
27.66
82.98
57.45
80.85
0.00
81.97
24.59
4.92
0.00
91.80
13.11
77.05
% respondents
MethodsusedinPromotion
Exporters Non-Exporters

Figure2: Efforts Made In Promoting Products to Get Customers (Based On 'Z' Test)
Thus, it is concluded that significant difference exists in the efforts made by exporters and
non-exporters of minerals. The effort made by exporters are significantly higher as compared to
efforts made by non-exporters. Thus, from the above discussion the hypothesis is hereby rejected.
CONCLUSION & SUGGESTIONS
There is substantial production and adequate resources of quartz and feldspar in Rajasthan
which should be optimally used for increased realization of foreign exchange in value added
form;
The demand of quartz and feldspar minerals are increasing day by day, hence, country’s trade
deficit be decreased which require substantial increase of export of these mineral products;
The government should arrange workshops, group discussions for imparting knowledge about
Rules, Regulations and procedures for easy exports as well as for imports of minerals;
The export formalities be cleared through a single window system at the District Export Centre
which are presently lacking in the Rajasthan; and
Mining be considered as “Industry”. Moreover, such small scale industries be granted easy
loan and a subsidized package in terms of exemption in taxes, etc. Like wise which is
prevailing in China be given so as to accelerate international trade of quartz and feldspar
minerals from the potential Rajasthan state.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Non-Exporters Exporters
2.93
5.19
Score
ExportingStatus

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