KARACHI, April 24: While the government has yet to issue a notification for unlimited duty- free import of cement at subsidised freight, the price of locally-produced cement in the market continues its downward journey.

A random market survey reveals that the Falcon cement bag is now priced at Rs350 as against Rs380 on April 17, and Rs400 prior to April 6. Similarly, the Javedan and Thatta varieties of cement are selling at Rs330-335 as against Rs355 last week. The Dadabhoy and Pakland made cement are available at Rs330 and Rs345 as compared to Rs350 and Rs360. The Power cement bag is being sold at Rs330 as against Rs350 last week.

Cement dealers in Karachi, who asked not to be named, are annoyed over the government’s dilly-dallying attitude in releasing the SRO about the duty free import and the freight subsidy at the rate of Rs60 per bag on import of cement. The decision was announced on April 14.

They blamed the government for succumbing to the pressure of the cement makers who are said to be trying to keep the government away from notifying the subsidy to rationalise the cement prices.

Dealers said that the consumers and even the builders had slowed down lifting locally produced cement. “The drop in demand has been resulting in frequent price fall,” they said adding that the consumers are waiting for the imported cement.

However, the process of import of cement could not be initiated unless an SRO is issued by the CBR.

Dealers said that they had put their heads down in working out the landed cost of the imported cement. Indian cement will cost them $70 per ton which means that it will reach Pakistan at Rs210 per bag. After adding some other expenses it can be sold at Rs230 per bag. There is a low freight benefit in importing cement from India, they added.

Dealers said that Chinese cement might cost $54 per ton and the landed cost will come to Rs165 and it may be sold in the local market for less than Rs200 per bag.

“The market is abuzz with reports that the cement makers have been making all efforts to delay the issuance of the SRO,” they said.

However, dealers are divided over the quality as some say that Indian quality is better than the Iranian cement.

A dealer in F B Area said there was very little difference in quality between Pakistani and Iranian, Indian and the Chinese commodity.

Another dealer in the same area said that the Pakistani cement was better in quality than that produced by some Asian countries. “If the cement made in Iran would have been famous for its quality and cheaper in price, it would have been extensively used in Balochistan especially in the construction of Gwadar Port,” he said adding that the imported cement can not match with the quality of the Pakistani cement.

Meanwhile, a cement maker also confirmed that the SRO had not been issued yet. However, the price, which was artificially pushed up by the dealers by piling up cement in their godown, has come down as the dealers started releasing the stocks in the markets.

Besides, around 180,000-200,000 tons of cement, which was planned for export to Afghanistan and other countries, during April 6 to 30, is already being diverted towards the local markets owing to ban on export. The cement bags were now selling at Rs330-335 in the market, he added.

The cement maker said that it was strange that the government was bent upon encouraging imports and discouraging cement exports despite knowing that the imports would swell the trade deficit.

A leading builder said that a commodity trader association was planning to import 400,000 tons of cement from various countries and around 100,000 tons is likely to arrive next month. Builders have reached an understanding with the traders association to supply cement at the rate of Rs250 per bag.

It may be mentioned here that this was the same trade body which had been meeting with the prime minister for the last few months to get duty and taxes relaxation for expediting imports of sugar aimed at bringing down the prices but so far, sugar prices have not come down but has, actually, been rising in the local markets.