LAHORE, April 24: Importers and traders are waiting eagerly for the issuance of the notification for the duty free and subsidised import of cement so that they could place orders for importing cement from India,” said Asif Saeed, a cement dealer while talking to Dawn on Monday.

He said the sales had come to a virtual halt because consumers were hoping that the cement prices would drop substantially once imports from India start landing here. “The situation has forced the retailers to sell their stocks on the ex-factory rates,” said the dealer.

Asif insisted that the rates would not come down unless cement was actually imported from India. “The manufacturers have already cut down supplies to the market in order to maintain the prices at the current levels,” he said.

The ECC had announced subsidy of Rs60 a bag on imported cement regardless of its origin, permitting unlimited imports by land or sea routes and banning its export, especially to Afghanistan, till further notice.

The cement manufacturers rejected these decisions, saying the “measures would affect the local industry adversely” at a time when it was in the process of doubling its capacity to 42 million tons a year from 21 million tons in the next 18 months.

The manufacturers blame the increase in the prices of raw material and the substantial rise in freight and transportation charges as a consequence of hike in the oil prices. Aside from these factors, they contend, the increase in the distribution charges has also moved the cement prices upward.

The decision to import unlimited quantities of cement from all over the world and discourage export of the commodity has put the cement manufacturers in serious trouble, says a manufacturer. The decision taken by the government is manifestation of inconsistent policies regarding the industrial sector, he added.

They insisted that the government had ignored the ground reality that the cement prices always go up during these months because of an increased consumption of the commodity owing to speedier works on public sector projects, and the prices always drop after a couple of months.

They called for revocation of the ECC decisions to save the industry that provides direct jobs to more than 6,000 people.