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Thursday, Aug 16, 2007
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Cement Industry & Economy - Exports & Imports Govt allows MMTC to import cement sans BIS mark
Move taken to curb prices and increase supplies. Cement prices have gone up nearly 45 per cent between January 2006 and July 2007.
Our Bureau Mumbai, Aug. 15 In a bid to curb the rising cement prices, the Government on Wednesday mandated Minerals and Metals Trading Corporation (MMTC) to import cement sans Bureau of Indian Standard (BIS) certification. It is mandatory for foreign cement companies to obtain the BIS quality certification before exporting to India. A statement from Ministry of Commerce said: “the exemption to import cement (by MMTC) without standard mark certification will be valid for 150 days from the date of recording of applications or till the grant of regular licence by BIS to the foreign manufacturer.” The MMTC will have to ensure the conformity of the imported cement to the BIS standards. It has to mark the imported cement bags, the Ministry statement added. The Union Government had taken various measures such as abolishing import duty and withdrawing countervailing and special additional customs duties to facilitate imports. However, importers blame the delay in awarding the BIS certification as major hurdle for imports. According to the Ministry estimates, cement prices have gone up nearly 45 per cent between January 2006 and July 2007. “The (latest) measure is in continuation of the Government’s efforts to augment the availability of cement in the domestic market,” the Ministry said. Earlier, the Minister of State for Commerce, Mr Jairam Ramesh, told Parliament that “fifteen Pakistan firms have sought approvals from BIS to sell cement to India” though he did not furnish the names of Pakistan companies or the quantity to be imported. Pakistan has a capacity to produce about 34 million tonnes per annum and is set to increase it to 40 mtpa by April 2008. ‘Prices stable’
Cement producers, however, maintain that the prices in India have been stable for the last couple of months. “The lowest price has been around Rs 190 while on the higher side it was close to Rs 240. There is no demand-supply mismatch. In fact, many of the companies are operating above their normal capacities by resorting to de-bottlenecking,” said a cement company official. Prices are under pressure and have fallen by around Re 1 to Rs 2 in north India, he added. According to the Cement Manufacturers Association, supplies grew 7 per cent to 41.60 million tonnes during April-June from a year ago, but demand expanded by 10 per cent in the same period and this had pushed up prices. India has an installed capacity of 165 million tonnes and faces a shortfall of around 10 million tonnes. Demand for cement is expected to remain buoyant in line with the booming economy, which demands investment in infrastructure activities such as highways, airports, ports, besides housing and office space.
Related Stories: ‘Pak cement by year-end’ Faster certification for imported cement Cement companies deny cartelisation in prices More Stories on : Cement | Exports & Imports | Standards & Benchmarks
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