Pak cement imports rise

Imports too small to have an impact on local prices.

Cement imports from Pakistan are on the rise and have traversed the 100,000 tonne-mark since the floodgates gates opened in September this year.

Between October-November, the quantum of imports have jumped nearly 25 per cent to 46,883 tonnes from 37,557 tonnes in September.

However, the quantity is too small and has, therefore, failed to make any impact on the domestic cement prices.

"Since we began exports to India in September, 100,756 tonnes of cement have been exported via the sea and the rail routes," said Shahzad Ahmed, secretary, All Pakistan Cement Manufacturers' Association (APCMA).

Of the total quantity, almost 60 per cent has gone through the sea route and the rest by rail. "Export by road should be allowed so that we can step up supplies," he added.

The average price of cement that was exported through the rail route is $72 (Rs 2,880) a tonne or Rs 144 a 50 kg bag, while the price of cement shipped through sea was $68 (Rs 2,720) a tonne or Rs 136 a 50 kg bag, according to Ahmed.

Even after including the cost of trasportation from the port or station, the cement reaches a consumption site at a price of around Rs 165 a bag. This is significantly cheaper than Rs 235-250 a 50 kg bag for the cement manufactured in India.

In April this year, the government had scrapped the 16 per cent countervailing duty on cement imports. It also withdrew the 4 per cent special additional customs duty. In January, the government had announced zero duty on cement imports. All these measures have rendered cement imports duty free.

The Bureau of Indian Standards (BIS) has granted quality licences to eight cement companies in Pakistan after the government relaxed cement import norms earlier this year. Manufacturers based outside India need to conform to BIS-certified quality standards before supplying cement.

Pakistan has a production capacity of about 38 million tonnes. However, the consumption being just 25 million tonnes, the rest is surplus.