Cement export ban eased partially

A notification by the Directorate General of Foreign Trade (DGFT) today said exports of cement will be allowed form all ports on the Gujarat coast.

Commerce Secretary Gopal Pillai said 2 million tonnes of cement will be allowed for exports. "With the monsoons approaching, there will be a slowdown in the demand for cement and hence the relaxation on the ban," he said on the sidelines of a Ficci seminar.

 

Earlier, the government had relaxed deemed exports of cement to special economic zones. Moreover, exports to Nepal were also allowed as the Himalayan country is dependent on India for supply of cement and cement clinkers.

Gujarat accounts for 90 per cent of India's cement exports and manufacturing units in the state were hit the hardest due to the export ban. The country exported 3.65 million tonnes of cement and 2.37 million tonnes of clinker in 2007-08.

The export ban had lead to an oversupply of the commodity in the Gujarat market as the construction activity in the state was not able to absorb cement produced in the state. As a result, many cement manufacturing units were planning to cut down on capacity utilisation.

Most of the surplus cement produced by Gujarat was being diverted to cities like Mumbai after the export ban was imposed.

Companies that have cement manufacturing units in the state include Ambuja Cements, UltraTech, Saurashtra Cement, Gujarat Sidhee Cement and Sanghi Industries.