Ravi Dahal

Birgunj, March 19:

With a drastic increase in market price of cement, incidents of cement smuggling from India have also increased.

Importers said that this increase is due to the price increase in construction material in the international market over the last one month. They added that other reasons for the increase in illegal imports were price hike in coal, oil and electricity as well as escalating construction works in the neighbouring country. The price of cement has increased by 20 to 25 per cent within one month.

The open borders at Parsa, Sirsiya, Chapkaiya, Inaruwa, Alau, Bhiswa, Itiya and Bara are the key areas for illegal cement import. Smugglers bring in around 25 metric tonnes of cement using cycles to Birgunj, local businessmen claimed. They added that these smugglers earn Rs 20 per sack of cement smuggled.

Ashok Baidhya, a cement importer, said that customers also prefer low-cost cements than good quality ones. He added. "Illegally imported cement is cheaper. It is the primary reason why consumers are attracted towards it." He said to The Himalayan Times that other reasons for the increase in cement smuggling is due to high tax on cement import.

Currently, one sack of cement (50 kg) costs Rs 240 in India. On top of that, Rs 105 tax is levied on per sack of cement. After import, the market price of a cement sack becomes Rs 340, while illegally imported cement sacks cost only Rs 265.

Though the demand for cement in the local market has decreased due to the price hike, demand is still very high. Dealers are unable to meet the demand, said Babu Lal Chachan, a cement dealer. He said, "A cement drought has hit the Indian market. The phenomenon is being reflected here too." Dealers said that the cost of cement transportation increased after the Uttar Pradesh government implemented the rule of 15-metric tonnes per truck. Earlier, trucks used to carry around 35 metric tonnes of load. Indian cement manufacturers have said that the price of cement might still rise.

Scarcity of Indian cement in the market has given ample chance to national manufacturers, but the Maoists embargo has not helped them at all.

Chachan, also the manager of Narayani Cement Industry, said, "The embargo has not only halted the chance to cash in on a good opportunity but has stopped cement manufacture due to lack of raw materials." A total of 60 per cent cement consumed in the country is imported from India.