Mills' plan to import cement hits snag

Chennai: The members of the Southern India Mills Association (SIMA) plan to import cement for their expansion programme to get around the high prices in the local market.

Though they have tied up with a Thailand-based supplier, local import requirements are a bottleneck delaying imports, say SIMA representatives.

According to Dr K. Selvaraju, Secretary-General, SIMA, the members have been forced to opt for imports because of the 'abnormal increase in cement prices'' in the local markets. At least 25-30 per cent of a project cost goes into construction and cement is a major component.

Prices in the local markets range around Rs 210 a bag and imports are a cheaper option. The members have contracted for 25,000 tonnes of cement from Thailand.

A SIMA member said that import prices worked out to about Rs 160 a bag against local prices of more than Rs 210.

However, according to SIMA members, the supplier has to wait for quality certification from BIS (Bureau of Indian Standards) before imports happen.

According to local authorities, suppliers need to get BIS certification. This could take up to a month.

According to BIS officials, BIS has a certification scheme for foreign suppliers to certify that they meet local quality norms.