The Hindu Business Line : Pakistan may export more cement to India

Chennai, Feb. 2 There has been a sharp increase in the flow of cement from Pakistan with about 100,000 tonnes arriving in January, against a total of 150,000 tonnes over the previous four months. The price of cement is around $70 a tonne FOB (about Rs 140 a bag), according to Mr Shahib Malik, Pakistan High Commissioner to India.

Price rise

Speaking to journalists of The Hindu and Business Line, he said that the rising trade in cement was a win-win for the two countries. With a manufacturing capacity of 38 million tonnes (mt) a year and domestic consumption of 26 mt, Pakistan has a large surplus for export. About 2 mt of that may be available for shipment to India in a year, he said.

Cement prices in India have been rising in recent months with domestic cement plants unable to produce as much as the market needs. Production in April-November 2007 totalled 107 mt, up 8.35 per cent over the same period a year ago. Since consumption has been rising faster, prices across the country have gone up by over 10 per cent topping Rs 270 per bag (Rs 5,400 a tonne) in certain cities.

The imports from across the border are expected to meet some, though not all, of the unmet demand and ease the pressure on prices.

Import qualification

The procedural bottlenecks that were holding back the flow of cement a few months ago had been cleared, the High Commissioner said. Among other qualifications, any cement consignment imported needs to meet BIS (Bureau of Indian Standards) specifications and be individually certified on arrival, a process that took several weeks each time and virtually took the enthusiasm out of many an exporter.

Smooth dispatch

Pakistan manufacturers are now taking the alternative route, which is to have their manufacturing plants certified by visiting officials of the BIS. Some 14 plants have come through the process in recent weeks, Mr Fazal Abbas Maken, Minister (Trade), Pakistan High Commission, said, enabling them to dispatch their product smoothly to India. The two Governments are also working out the modalities by which manufacturers certified by the Pakistan Standards and Quality Control Authority would not need to obtain afresh a certification in India, he said.

Drop in price

Newspapers in Pakistan have noted that the export price of cement to India has dropped over the past few weeks by $4 a tonne from a peak of $74 a tonne as more companies win certification and become eligible to compete for the Indian market. However, the price is still substantially higher than it was a year ago, when exports took place at $47 a tonne.

More Stories on : Cement | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Higher price realisations help cement firms post profits

Pakistan may export more cement to India

India Inc earnings grow at slower pace in Dec quarter

MFs weather market turbulence

Diversity is the flavour at B-schools

ISPs for inter-linking cables

IPO mop-up in Jan at over Rs 13,000 cr