As the tensions are escalated between India and Pakistan, Indian importers stopped the purchase of cement from Pakistan.
Indian importers halted cement purchase and asked Pakistani exporters to recall their containers. However, India increased 200% duty on different Pakistani products after the Pulwama attack.
Cement exports to India were increased after the Indian government’s decision of allocating Rs 50 billion rehabilitation fund for Kerala which was devastated by floods in 2018. As a result, both price and demand were on the rise after an additional demand.
Around six companies are exporting cement to India out of which DG Khan Cement and Maple Leaf Cement enjoy a greater share due to low transportation cost via road. Their exports will be more vulnerable to a slight decline in despatches.
India previously imposed 19% duty on cement imports from Pakistan, which was later removed in 2007 in the wake of rising local demand and limited production capacity particularly in Indian Punjab.