Cement industry faces challenges in global markets
Cement

Cement industry faces challenges in global markets

The PHD Chamber of Commerce and Industry (PHDCCI) has informed the commerce and industry ministry that India's cement industry is facing challenges in competing in international markets due to the duty-free imports of cement within the country and the additional duties imposed on domestic producers for raw materials. In a letter to the ministry, the industry body has called for a reciprocal import duty and a correction in the inverted duty structure.

According to the PHDCCI, the government should impose a minimum 40% import duty and either limit or prohibit the export of all raw materials, including limestone, steel slag, and fly ash. Currently, India is the second-largest producer and consumer of cement, with a manufacturing capacity of just under 600 million tonnes annually. Despite the industry's efforts to expand capacities in anticipation of strong demand in the coming years, it faces tough competition from neighbouring countries like Nepal and Bangladesh. These countries impose duties of at least 25% on imported cement. Moreover, while India allows duty-free imports of limestone, steel slag, and fly ash to these nations, domestic producers have to pay import duties for raw materials such as coal, pet coke, and gypsum.

The PHDCCI's letter highlighted the unfair trade practices, stating that cement from Bangladesh and neighbouring countries is flooding the Indian market, making Indian cement uncompetitive in these countries. The situation has led to 17 companies from Bangladesh capturing a portion of the Northeast Indian market and now shifting their focus to the eastern markets. Currently, the Northeast region of India has an annual production capacity of approximately 16 million tonnes, with an annual consumption of 10-12 million tonnes.

Despite having the production capacity, domestic industries produce less due to imports from Bangladesh and the unrestricted export of raw materials to neighbouring countries, as per PHDCCI.

The PHD Chamber of Commerce and Industry (PHDCCI) has informed the commerce and industry ministry that India's cement industry is facing challenges in competing in international markets due to the duty-free imports of cement within the country and the additional duties imposed on domestic producers for raw materials. In a letter to the ministry, the industry body has called for a reciprocal import duty and a correction in the inverted duty structure. According to the PHDCCI, the government should impose a minimum 40% import duty and either limit or prohibit the export of all raw materials, including limestone, steel slag, and fly ash. Currently, India is the second-largest producer and consumer of cement, with a manufacturing capacity of just under 600 million tonnes annually. Despite the industry's efforts to expand capacities in anticipation of strong demand in the coming years, it faces tough competition from neighbouring countries like Nepal and Bangladesh. These countries impose duties of at least 25% on imported cement. Moreover, while India allows duty-free imports of limestone, steel slag, and fly ash to these nations, domestic producers have to pay import duties for raw materials such as coal, pet coke, and gypsum. The PHDCCI's letter highlighted the unfair trade practices, stating that cement from Bangladesh and neighbouring countries is flooding the Indian market, making Indian cement uncompetitive in these countries. The situation has led to 17 companies from Bangladesh capturing a portion of the Northeast Indian market and now shifting their focus to the eastern markets. Currently, the Northeast region of India has an annual production capacity of approximately 16 million tonnes, with an annual consumption of 10-12 million tonnes. Despite having the production capacity, domestic industries produce less due to imports from Bangladesh and the unrestricted export of raw materials to neighbouring countries, as per PHDCCI.

Next Story
Infrastructure Energy

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Next Story
Real Estate

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world..

Next Story
Real Estate

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App