CEMENT IMPORTS

This refers to ‘Pak looks to make India top cement export destination’ (25.10.2007)
India has an installed capacity of 165 million tonnes per annum and faces a shortfall of around 10 million tonne. In 2006-07, the domestic consumption stood at 155 million tones while 9 million tones were exported. This marks over 11 percent growth over the consumption in 2005-06. While demand is growing 12 per cent annually corresponding production increase is only 8 per cent.

Contrast this with Pakistan that has surplus production of 12 – 14 millions tonnes. Even after taking additional expenses involved in transportation, Pakistani cement is cheaper in India.

Buoyed by the opportunity thrown open by shortage of cement in the country and scrapping of 16 per cent countervailing duty on cement imports, many cement manufacturers from China, Hong Kong and Bangladesh are waiting in the wings to enter into Indian market.

As the imports from Pakistan is mainly being used by the bulk users, they are, at the moment not affecting the Indian producers and consumers at large . But when all our neighbouring countries begin dumping their excess cement in India at cheaper rates, it will definitely have adverse impact on our cement industry . Cement import should be restricted to bridge the demand supply gap and not at the cost of the country’s cement sector

NUJUM H
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Published in Business Standard on 30th October, 2007