Cement export to India: Prime Minister directs ministry to examine possibilities

The Prime Minister Shaukat Aziz has directed the Ministry of Industries and Production to look into the possibility of cement export to India where prices are much higher as compared to Pakistan, official sources told Business Recorder here on Friday.
Sources said that the Prime Minister gave these instructions to the Ministry at the Economic Co-ordination Committee (ECC) of the Cabinet meeting on April 10. "Since cement prices are much higher in India, possibility of export should be explored," sources quoted Prime Minister as saying.
They said that the Prime Minister also asked the Ministry of Railways to increase the number of wagons, presently 14, for dispatching cement to India. The Production Ministry in its brief apprised the meeting that national average price of cement during March was Rs 242 per 50 kg bag and Rs 239 in the first week of April.
The capacity utilisation of cement plants during first nine months was 75.7 percent, which was too low vis-à-vis their original potential, sources added.
The Ministry said that there was shortage of cement in India and there was no regulatory restriction on its export to India either.
However, Presidency was unhappy over the rising trend in cement prices in the country and sought report from Industries Ministry, sources said. A couple of months earlier, cement manufacturers agreed to construct silos at Karachi Port and Port Qasim on self-finance basis for export of cement.
The decision had been taken at a meeting between the Industries Ministry and All Pakistan Cement Manufacturers Association (APCMA) and All Pakistan Contractors Association (APCA).
Sources said that due to investment-friendly policies of the present government, the capacity of cement plants had gown up to 33 million tons at the end of year 2006 as compared to 21 million tons in January 2006, while the present domestic demand is around 22 million tons. They said that the government would provide all possible facilities for export of cement to India. However, sources said that prices of cement should not be increased, as the government has to protect the interests of the common man also.