Local cos start cement export to Indian market
Monday, 6 August 2007
Bangladeshi cement companies have started to take advantage of a recent revision in export duty tariffs by the Indian government, reports bdnews24.com.
The change, which applies only to cement exports, will go some way to meet the rising demand for cement in the North-eastern states of India, which has reached 0.3 million (3.0 lakh) tonnes annually. They currently produce only 0.1 million tonnes.
Three companies, including Holcim Bangladesh Limited, have already been exporting a limited amount of cement to India for two years through land ports after paying prohibitively high duty rates of 48 per cent.
However, these companies were unable to use the river routes due to restrictions, imposed by the Indian administration.
Under the provision, domestic cement producers will have access to the Indian market at a zero duty rate on all border crossings.
Holcim alone will be able to earn $6-8 million a year by exporting nearly 0.1 million tonnes of cement to India, according company officials.
Holcim Bangladesh Limited Managing Director PN Iyer said, "Last week we exported an initial instalment of 500 tonnes to Karimganj in the lower part of Assam by river."
"Another shipment of 1,000 tonnes started for Gowhati in Assam Friday. We plan to export 0.1-0.15 million tonnes every year to the region", he said.
There is a huge demand for cement in North-eastern India because of local production shortfalls. This has led the construction industry to import cement from more distant states in India at a higher price.
"A tonne of cement will cost $80-90 for the Indian importers, with clinker (a component of cement) priced at $55", Holcim managing director said.
The change was initiated through the Inter-Country Inland Water Trade and Transit Protocol, signed between the two countries in the late 1970s.
The Bureau of Indian Standards has certified three Bangladeshi companies -- Holcim Bangladesh Limited, Aramit Cement Limited and MI Cement Factory Limited -- for exporting cement to India.
The change, which applies only to cement exports, will go some way to meet the rising demand for cement in the North-eastern states of India, which has reached 0.3 million (3.0 lakh) tonnes annually. They currently produce only 0.1 million tonnes.
Three companies, including Holcim Bangladesh Limited, have already been exporting a limited amount of cement to India for two years through land ports after paying prohibitively high duty rates of 48 per cent.
However, these companies were unable to use the river routes due to restrictions, imposed by the Indian administration.
Under the provision, domestic cement producers will have access to the Indian market at a zero duty rate on all border crossings.
Holcim alone will be able to earn $6-8 million a year by exporting nearly 0.1 million tonnes of cement to India, according company officials.
Holcim Bangladesh Limited Managing Director PN Iyer said, "Last week we exported an initial instalment of 500 tonnes to Karimganj in the lower part of Assam by river."
"Another shipment of 1,000 tonnes started for Gowhati in Assam Friday. We plan to export 0.1-0.15 million tonnes every year to the region", he said.
There is a huge demand for cement in North-eastern India because of local production shortfalls. This has led the construction industry to import cement from more distant states in India at a higher price.
"A tonne of cement will cost $80-90 for the Indian importers, with clinker (a component of cement) priced at $55", Holcim managing director said.
The change was initiated through the Inter-Country Inland Water Trade and Transit Protocol, signed between the two countries in the late 1970s.
The Bureau of Indian Standards has certified three Bangladeshi companies -- Holcim Bangladesh Limited, Aramit Cement Limited and MI Cement Factory Limited -- for exporting cement to India.