‘Cheaper Pak imports, high tax at home hurt cement industry’

There’s been no customs duty on cement imports from Pakistan since 2007, making it competitive in comparison to the Indian product, especially in the states bordering Pakistan.

“Pakistani cement is almost 10-15 per cent cheaper than Indian cement,” said Shailendra Chouksey, President, Cement Manufacturers Associations.

Data from the Directorate General of Foreign Trade’s website showed that total imports of portland cement during 2017-18 (April-March) was 16.82 lakh metric tonne. Out of the total imports, industry sources say, 76 per cent – around 12.72 lakh tonne – was imported from Pakistan.

In Punjab, the market rate of portland cement is Rs 280-300 per bag (1 bag = 50 kg), while the Pakistani import is sold at Rs 240-250 per bag, traders said.

Although market players across the country have not been affected much so far due to the high imports, industry in states bordering Pakistan and the coastal state of Kerala have been severely hit, industry sources said. Imports to Kerala come from Karachi via sea.

Cement producers say the domestic industry is self-sufficient and any further imports only renders a significant amount of the domestic produce futile.

“A major concern is that Indian capacity is already underutilised. We are hardly utilising 65 per cent of the Indian capacity. The remaining 35 per cent remains unutilised,” Chouksey said.

Cement imports from Pakistan for the period December 2017 and March 2018 have witnessed growth of 24 per cent on a year-on-year basis at 4.55 lakh tonnes, up from 3.68 lakh tonnes.