Cement imports fail to take off

More than two months after the government scrapped the countervailing duty (CVD) on cement imports, not a single international cement company has been granted a licence by the Bureau of Indian Standards (BIS) to export the commodity to India. The government's efforts to control the domestic cement prices through cheaper imports have not yielded results.

"We have received 8 to 10 applications from international producers, but not a single application has reached the stage of a visit by our officials," said P K Batra, director (central marks), BIS. The manufacturers based outside India need to conform to BIS-certified quality standards before supplying cement.

On April 3, the government had scrapped the 16 per cent CVD on cement imports. It also withdrew the 4 per cent special additional customs duty. Earlier in January, the government had announced nil duty on cement imports. However, no imports took place as the imported cement was costlier.

The cement prices came down last month after the government's decision to withdraw the dual excise duty (Rs 350 a tonne for cement selling at or below Rs 190 per 50kg bag and Rs 600 a tonne for cement selling above Rs 190) announced in the 2007-08 Budget and replace it with an ad-valorem duty of 12 per cent. Consequently, the cement companies introduced price cuts ranging from Rs 3-8 per 50kg bag, across most markets.

"Though the imported cement may be cheaper by Rs 50-70 per bag compared with the domestically produced variety, getting BIS approval is a long-drawn process. We may see some imports at cities close to the ports by October, but the quantities will not be significant to impact domestic prices", said Sanjay Ladiwala, president of Mumbai Cement Stockists and Dealers Association.

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NOT GOOD ENOUGH

The Bureau of Indian Standards (BIS) had received eight to ten applications from international cement companies

Not a single company has been granted licence by the BIS to export the commodity to India

The government's efforts to control the domestic cement prices through cheaper imports have not yielded results