Centre Permits MMTC To Import Cement Sans BIS Mark

Mumbai: In a bid to hold the increasing cement prices, the Government on Aug 15, mandated Minerals and Metals Trading Corporation (MMTC) to import cement sans Bureau of Indian Standard (BIS) certification. It is compulsory for foreign cement companies to obtain the BIS quality certification before exporting to India. A statement from Ministry of Commerce said: the exemption to import cement (by MMTC) without standard mark certification will be valid for 150 days from the date of recording of applications or till the grant of regular licence by BIS to the foreign manufacturer. The Union Government had taken various steps such as abolishing import duty and withdrawing countervailing and special additional customs duties to facilitate imports.

According to the Ministry estimates, cement prices have increased nearly 45 per cent between January 2006 and July 2007. The (latest) measure is in continuation of the Government''s efforts to augment the availability of cement in the domestic market. Cement producers, however, maintain that the prices in India have been stable for the last couple of months. There is no demand-supply mismatch. Prices are under pressure and have declined by around Re 1 to Rs 2 in north India. According to the Cement Manufacturers Association, supplies grew 7 per cent to 41.60 million tonnes during April-June from a year ago, but demand expanded by 10 per cent in the same period and this had pushed up prices. India has an installed capacity of 165 million tonnes and faces a shortfall of around 10 million tonnes.