The Hindu Business Line : Exim Bank recipe to raise cement exports

THE Government can create enabling conditions for the domestic cement industry to penetrate the markets of neighbouring countries like Bangladesh and Sri Lanka by negotiating for a zero tariff dispensation for cement and clinker exports.

A suggestion to this effect has been made by an Exim Bank study on `Export competitiveness of cement industry.' The research paper has found that Indian cement is competitive in markets like Bangladesh and Kuwait, but not in major import markets like Singapore, Sri Lanka, Malaysia and the Philippines.

The paper found that Singapore, Bangladesh, Kuwait, Sri Lanka, Malaysia and the Philippines offered potential for export of cement, provided the production cost was brought down substantially.

It held that the Government could play a major role in helping the industry reduce its cost of production. This can be done through reduction in royalty and cess on limestone and coal meant for export production.

Besides technological advancement, the study also made a case for higher capacity utilisation to help aggressive pricing of exports on marginal cost basis.

Analysing the global market potential, the study shows that China and Hong Kong top the list with 567 million tonnes (34 per cent of world consumption) of cement usage.

In terms of per capita consumption, however, countries like the UAE, Kuwait and Taiwan top the list, due to increasing construction activity.

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