Government policies play a crucial role in shaping the market dynamics of various industries, and the silica sand crusher industry in India is no exception. Silica sand is an essential resource for industries like construction, glass manufacturing, and foundry operations, among others. Hence, any fluctuations in its prices directly impact these sectors and the overall economy.

One of the key factors affecting silica sand crusher prices in India is the stringent regulations imposed by the government to control illegal mining and environmental degradation. Over the years, India has witnessed a significant rise in illegal sand mining, leading to the depletion of natural resources and ecological imbalance. In response, the government has implemented policies to monitor and regulate this issue.

The Ministry of Environment, Forest, and Climate Change (MoEFCC) has made it mandatory for all the states in India to obtain environmental clearance for mining sand, including silica sand. This clearance is given only after assessing the environmental impact and ensuring compliance with various regulations. These measures have led to increased production costs for silica sand crushers as they need to invest in sustainable mining practices and environmental protection measures.

Moreover, the government has also imposed restrictions on selling or transporting sand across state borders by implementing the Mines and Minerals (Development and Regulation) Amendment Act (MMDR), 2015. This act aims to prevent illegal sand mining and encourages state governments to auction mining leases through a transparent bidding process. As a result, the supply of silica sand has become limited, leading to an increase in prices.

Another significant factor influencing silica sand crusher prices is the Goods and Services Tax (GST). GST is a comprehensive indirect tax levied on the manufacturing, sale, and consumption of goods and services across the country. The silica sand crusher industry falls under the 28% tax bracket. Due to this high tax rate, manufacturers and suppliers have to increase the prices to maintain profitability. This ultimately affects the overall cost of construction, glass production, and other industries dependent on silica sand.

Furthermore, the availability of transportation infrastructure and logistic facilities also impacts silica sand crusher prices. The government has been focusing on improving the connectivity and efficiency of transportation networks through initiatives like the Bharatmala Pariyojana and Sagarmala projects. However, the slow progress in the development of these projects has resulted in increased transportation costs for silica sand, adding to the overall price.

In conclusion, government policies play a significant role in driving silica sand crusher prices in India. Regulations aimed at curbing illegal mining and maintaining environmental sustainability increase production costs. The implementation of GST and limited supply due to border restrictions further impact the prices. Additionally, the availability and efficiency of transportation infrastructure also influence the final costs. Hence, it is essential for the government to strike a balance between regulating the industry and ensuring the availability of silica sand at reasonable prices to promote economic growth in various sectors.

Contact us