Cement imports from Pakistan are on a decline, thanks to the non-renewal of their quality licence by the Bureau of India Standards (BIS). In the July-November period this year, Pakistan’s cement exports to India were down by 34 per cent to 183,026 tonnes. In 2009-10 (July-June), Pakistan had exported 722,967 tonnes.
Pakistani cement companies are required to obtain quality certification from the BIS. Between 2007 and 2008, BIS had granted a quality licence to 22 Pakistani cement companies. However, some of these licences belonging to companies like DG Khan and Maple Leaf have expired.
These companies, according to the All Pakistan Cement Manufacturers’ Association (APCMA), have approached BIS for renewal. But their renewal application is pending with BIS for the past four to five months. The BIS did not reply to an emailed query sent by Business Standard.
“Pakistani cement has been well accepted in India. The BIS should renew licences as early as possible after completing the formalities,” said Shahzad Ahmed, Secretary, APCMA.
Since 2007, Pakistan has exported 2.32 million tonnes of cement to India. Shahzad added licences of more Pakistani companies would expire in the coming months.
Anudeep Singh Madan, president of the Amritsar-based Cement Importers Association, said the region was getting good quality cement from Pakistan at a lower price.
After taking into account the cost of rail transport from Wagah to Amritsar and local transportation, the imported cement is delivered to retail buyers at Rs 220 per 50-kg bag, while Indian cement is available at Rs 250 per 50-kg bag.
In April 2007, the Indian government had scrapped the 16 per cent countervailing duty on cement imports to facilitate these and augment availability as part of its inflation control measures. It also withdrew the 4 per cent special additional customs duty.
In January 2007, it announced zero duty on cement imports. These steps were taken to augment the domestic demand-supply gap, which now stands largely corrected with the addition of new capacities. All these duties have been restored.
