J&K turmoil hits cement companies' despatches

Ambuja Cements, Binani Cement and JK Lakshmi Cement have seen their despatches to Jammu & Kashmir squeezing due to the ongoing instability in the state over the Amarnath shrine land issue. Even imported cement from Pakistan is facing similar fate.

In some cases, the supply is totally stopped as Jammu-based stockists have stopped placing orders as uncertainty looms large. Barely a few months ago, the widespread Gujjar agitation in Rajasthan had hit the despatches by as much as 50 per cent in the northern region.

The president of Cement Manufacturers’ Association, HM Bangur, told Business Standard that natural causes such as excessive rains in the region and instability in Jammu and Kashmir have brought down despatches by 15-20 per cent so far in August compared to the last month’s. “Still there are some days left in this month, we hope things will settle down,” added Bangur, who is also the chairman and managing director of Shree Cement, a Rajasthan-based cement firm.

Jammu and Kashmir is the least cement consuming state in the northern region. The state consumes around 1.26 million tonnes of cement annually, whereas annual production capacity is only 0.2 million tonnes. The state gets most of its cement supply from Himachal Pradesh and Punjab.

A L Kapur, managing director, Ambuja Cements, said, “There has been no despatches (to J&K) since the beginning of August.” The company supplies cement to the state through rail and road routes from its Ropar (Punjab) and Darlaghat units (Himachal Pradesh). “There is no movement. Since, we all are volume players, my clinker is getting accumulated as supply is totally shut,” added Kapur.

According to Shailendra Chouksey, whole-time director of JK Lakshmi Cement, the company’s despatches to the state have dipped by around 50 per cent.