Pakistan on Wednesday offered to export cement to India, a move that may help lower the commodity's market price by at least Rs 20 per bag of 50 kg and bring relief to the government that is trying hard to persuade domestic industry to roll back hike in prices announced post-Budget.Imports from across the border in tandem with abolition of all import duties would ensure that Pakistani cement would land at Mumbai port at Rs 200 per bag of 50 kg and even less in Punjab, builders said.
This compares favourably with the domestic availability of cement at a price tag of Rs 220 or more per bag.
During the meeting with Prime Minister Manmohan Singh, Pakistani counterpart Shaukat Aziz said his country was ready to export cement to India taking advantage of the import duties abolition by India, according to an official statement.
The Finance Ministry had on Tuesday abolished 16 per cent countervailing duty and four per cent special additional duty on cement (except white cement) to make imports of the construction material duty free. The government had already abolished basic customs duty of 12.5 per cent in January.
The cement industry put up a brave front, saying the move would not make imported cement cheaper than being offered by domestic manufacturers.
The abolition of import duties would make imports of cement cheaper by around Rs 22-23 a bag, but it would still be higher than the domestic product, J K Cement CFO A K Saraogi said, pointing to limited scope of the government's move.
CMA vice president H M Bangur said foreign exporters cannot compete with Indian cement companies.
© Copyright 2007 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
|
Advertisement
Email this Article 
Print this Article