'Cement export ban not to contain inflation'BS Reporter / New Delhi April 12, 2008Even as the government has notified the ban on cement exports with effect from Friday, steel producers today said the ban will not be effective in containing the price rise, given the fact that cement exports account for only 3 per cent of domestic production. Industry added the move would deter it from enhancing capacity. "Exports of cement constitute only 3 per cent of production and 90 per cent of the exports are from companies located around the Gujarat coastal area. Most of these companies are small and mainly export to South Africa and Sri Lanka, as is obvious from their location and country focus. Therefore, the steps taken by the government on banning cement exports would not be effective to contain the price rise," a Confederation of Indian Industry release said. CII called on the government to consider reducing the excise duty of cement, a move that it said would help in controlling prices. Separately, the Indian Steel Alliance today appealed to Prime Minister Manmohan Singh to take into account the negative consequences of banning exports of cement and steel. "The total percentage of exports of steel at the moment are not more than 6-8 per cent of total production. Would a total ban on the export of steel make it available at significant quantities within the country to ease inflation pressures", president Moosa Raza said. The export ban ban comes after cement companies increased prices of the commodity by Rs 5 per 50 kg bag earlier this month. In the period between April 2007 and February 2008, cement exports stood at 3.33 million tonnes, down 38.78 per cent over the corresponding period of 2006-07 on account of higher price realisation in the domestic market.Meanwhile, Commerce Minister Kamal Nath today clarified that the ban will not be effective on deemed exports made to EoU's and SEZ's.
