Running parallel to the shore in the Gulf of Mannar along the Indian coast are situated 21 islands of limited extent between Lat. 8•47′ N-Long. 78• 12′ E and Lat. 90 1S•N-Long. 79°14’E. These islands are extensive in the depth and quantity of the coral rt:efs around them. In addition to these islands, coral reefs exist also around the Rameswaram Island, the largest island in this series, which is all but contiguous with the mainland but for a short span of 2 km from Thonithurai to Pamban. Here the reefs start from NNE of Rameswaram shore and run around DeviI’s Point parallel to the shore and extend up to Mandapam in Palk Bay where they end. The corals of these localities are being quarried for industrial purposes. The Tuticorin type of boats with a small crew of fishermen operate for breaking the corals during the months of October to May in the Gulf of Mannar and May to September in the Palk Bay. The bulk of the stones quarried now are from the islands north of Nallatanni tivu. The collection and utilisation of coral stones in the carbide industry and in the lime manufacture are detailed and the economics of the coral stone fishermen are given. The annual rate of removal of coral stones at the present level of exploitation seems to warrant a detailed survey of the exploitable coral resources in the area now exploited and the enforcement of a scheme for rational exploitation of the coral stones.