Indian cement prices may not fall following abolition of customs duty
The Indian government’s decision to abolish the custom duty on Portland cement is unlikely to bring down the prices of the commodity in the domestic market.
"In the general market, there will be no impact on cement prices due to cut in custom duty," J K Lakshmi Cement Whole Time Director Shailendra Chouksey said.
He, however, said the projects near ports might be benefited with the abolition of duty on portland cement.
"It is not a positive decision by the government," he said adding the government should have instead rationalised the tax as the industry is being subjected to heavy taxation.
Government yesterday brought down custom duty on 11 product categories aiming to curb inflation, which has touched 6.12 per cent for the week ended January 6. The customs duty on portland cement was brought down to nil from 12.5 per cent.
Chouksey said the domestic prices of the cement was cheaper by Rs 15 even after abolitions of customs duty.
However, he felt that further price increase of cement may get checked. Published under Cement News
