Indian government eases ban on cement exports

Indian government eases ban on cement exports
Published: 28 May 2008

The government of India has eased the ban on cement exports from the ports in Gujarat. Gujarat accounts for almost 90 per cent of the country’s cement exports.

The Director-General of Foreign Trade has also issued a notification to give effect to the Government decision.

“The existing ban on export of cement and cement clinkers shall not be applicable to export of cement from ports of Gujarat,” the DGFT notification said.

The major cement manufacturers in the State include Gujarat Ambuja, Binani Industries, UltraTech, Sanghi Cement and Gujarat Siddhee. There are also around 90 operational mini cement plants in the State.

Commerce Secretary, Mr GK Pillai, said that as domestic demand for cement is usually low during the monsoon season owing to slowing of construction activities, exports have been permitted.

“During the monsoon months of June and July, very few people construct houses and the demand will come down. That also helps to keep the market going,” he said.

Earlier, on April 11 the Government had banned cement export in its bid to rein in rising inflation.

Cement companies exporting from Gujarat ports traditionally cater to the Middle-East market, he said and added that approximately 2Mt of cement are exported annually from

Stating that the Government decision has come at the right time, the President of the Cement Manufacturers Association (CMA), Mr HM Bangur, said “We have enough cement to cater to the domestic requirement.” “Even after exports, we will have surplus cement,” he said.

India exported 3.33Mt of cement during April-February 2007-08, according to CMA data. The annual production was around 170Mt last fiscal, while the installed capacity reached 196.22Mt as on April 30, 2008.