The graphite unit located in Sivaganga district.
| Photo Credit: L BALACHANDAR
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. This supply chain has recently stalled, as controversial decisions by high-ranking TAMIN executives have caused buyers to hold back for the past twelve months, alleged sources from the industry. 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. Currently, daily production has plummeted to just 10 to 12 tons, the source added. This downturn has already resulted in layoffs for contract workers. If the stagnation persists, a total shutdown of the plant is imminent, threatening the livelihoods of the remaining permanent staff. Consequently, the workers said, there are growing calls for the 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. This 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 a few days earlier. Speaking to reporters there, she said: “Traders from other States buy the graphite available in the Sivaganga region and run ancillary industries. Steps will be taken after speaking with the Chief Minister to start those same ancillary industries in the Sivaganga area. Through this, numerous youths will get employment opportunities.” Published - May 26, 2026 08:03 pm IST
