Trade Articles

Keeping the ahead monsoon season into consideration, India has lifted the ban on cement export but has allowed permitted shipments only through gujarat ports. In the monsoon season local demand of cement as construction material comes down, which automatically escalates its supply than its actual availability. According to the Directorate General of Foreign Trade, “The existing ban on export of cement and cement clinker shall not be applicable to export from ports of Gujarat".

Earlier in a bid to rein in increasing inflation rate and for ensuring cement domestic availability, the government has imposed ban on its export on 11th April, 2008. Before the imposition of ban, the cement companies has increased their prices by 3 percent to 4 percent, cited out the reasons like increasing demand, hike in value added tax, high fuel prices etc. The commerce minister Mr. Gopal Pillai said that due to the rainy season, the government is expecting slackening in the cement demand as nobody constructs house. Gujarat ports have been keeping outside of any exporting ban and cement is allowed to be shipped from here as prior also cement manufacturers were exporting to the middle east from this port. These ports hold maximum cement export from India. These manufacturers were not dealing in the local market and was involved in exporting only. Therefore due to the ban, they suffered a lot. He said that two million tonnes of cement would be annually exported from the ports of gujarat. The government has also allowed cement clinkers export to Nepal. In actual, Nepal occupies only the small portion of the total india's cement export but cancelling ban on export to the nation is considered as a good move in the direction. Similarly, pemitting cement export through gujarat port is a good sign for those companies which are operating in the region because in may due to the imposition of ban on export, prices were reduced by great percentage due to the surplus availability. All these hampered the profit ratio of companies.

Indian Cement Industry
Over the years, the Indian cement industry has witnessed an increase in its export, which has fulled the Indian cement industry. The international cement demand is derivative in nature as it depends on the constructional activities, real estate, industrial activities. There are around 300 small and 130 large cement plants in the India. The combined production capacity of these plants is around 167.36 million tonnes. Keeping the tune with the technological world, the Indian cement industry has transited itself into more advanced one. At present, the Indian cement industry is positioned on the second rank. This has offered advantages to the industry. The Indian cement industry is not only meeting the requirements arisen within the domestic territory but also fulfilling the burgeoning demands of the international arena. India is also exporting good amount of cement clinker and by products of cement. Due to the superlative quality, the Indian cement has occupied the high position on the global map.