The Financial Express

Building material exports

Cement makers seek 10pc cash stimulus

| Updated: August 10, 2022 19:30:42

Cement makers seek 10pc cash stimulus

Local cement manufacturers suggest a 10-per cent cash incentive for the export of key construction materials aiming to increase the current export volume threefold.

They also seek to relax the duty-drawback provision, reads a letter of the Bangladesh Cement Manufactures Association (BCMA) sent to the commerce ministry requesting steps to this effect.

"We have received a letter from the BCMA and are working on the issue," says an official concerned.

The country solely relied on imported cement as a key construction material around three decades ago.

But things have changed over time. This non-conventional product being made locally is now exported abroad after meeting the domestic demand.

The volume of cement export was 0.25-million tonnes in the calendar year 2021. Of them, a lion's share was exported to the north-eastern states of neighbouring India, cites the letter.

The BCMA claims local cement producers are exporting the item competing with their large Indian rivals.

Enhancing the export volume of this construction material to two to three times high is possible if the sector gets cash incentive for export, it observes.

The association has also requested steps to relax the current duty-drawback provision.

A total of 76 cement companies are registered with the government, but only 42 large-, medium- and small-scale companies are currently in operation.

Of them, seven have stock market listings, according to the association.

Currently, all the 42 plants have a total yearly production capacity of an estimated 58-million tonnes against the demand for approximate 31-million tonnes.

The cement industry is dominated by only 10 companies, including two multinationals, holding around 75 per cent of the total market share.

Per-capita cement consumption is expected to touch the level of 250 kilo in by 2022, shows the BCMA webpage.

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