Imports of cement from Pakistan by rail, started in September 2007 and seen as a friendly gesture between India and its neighbour, have become a matter of concern following the recent terror attacks in Mumbai. The Indian cement industry is now sensing an opportunity to demand a curb on Pak imports of the commodity, which, of late, has created oversupply and pulled down prices in North India. The industry now wants the Indian government to review its trade talks with Pakistan, especially with respect to cement, as it believes that lack of meticulous check of the commodity entering India may spell trouble for the country.
HM Bangur, CMD of Shree Cement told FE, ?I visited the Wagah Border last month from where cement is brought in India, and I saw the checking was not thorough, making it easy for any amount of explosives like RDX to enter India.?
It was reported that India and Pakistan were earlier running about 12 to 13 trains a month, which are now over 25 trains a month. India had planned to import at least 7 million tonne cement in 2008-09 from Pakistan, a huge jump from the 2.4 million tonne cement it imported from across the border last fiscal. However, imports were much lower than what was targeted.
In April 2008, 45,000 tonne of cement was brought into the country from Pakistan by the railways, and in May, trade shot up to about 60,000 tonne.
?Trade should not be stopped but proper checking and security systems should be in place, especially for bulk material coming from across the border,? Bangur added.
Cement import from Pakistan was a major concern for Indian cement players as increase in the imported cement was impacting the price of the commodity in northern India.
?The demand for cement has come down in North but in South, it is still robust. Pakistan supplies cement to Kerala through Tamil Nadu. It is mainly supplied via sea route from southern Pakistan to southern India,? said an analyst on condition of anonymity.
Vinod Juneja, MD of Binani Cement said, ?Taking in to consideration the security aspects, the Indian government should immediately review trade with Pakistan.?
In Southern India, Indian cement is sold at Rs 265 per 50 kg bag, whereas Pakistan cement is sold at Rs 240 ? 250. In the northern region of India, Indian cement costs Rs 225 to Rs 230 whereas Pakistan cement costs Rs 220 per 50 kg bag. In Mumbai, Pakistan cement is sold at Rs 240 per bag and Indian cement at Rs 250 to 260 per bag.