Bangladeshi cement gains strong foothold in Tripura market

Highlights:

• Daily exports of 60-70 tonnes are making Bangladeshi brands a major player in the market
• Bangladeshi cement is used in government buildings and major projects like Agartala's flyover
• Exports are on the rise, with 22,000 tonnes shipped in FY 2022-23 and 11,000 tonnes so far this year
• There's potential to double exports if more Bangladeshi companies enter the market

Bangladeshi cement is becoming increasingly popular in Tripura, India, due to its low cost and high quality. 

Currently, cement is the second-most exported product through the Akhaura land port in Brahmanbaria, with 60-70 tonnes being sent to Tripura daily. This has led Bangladeshi cement brands to establish a strong presence in Tripura's construction materials market.

Exporters believe there's a significant opportunity to increase Bangladesh's export earnings by capitalising on this growing demand. 

Since 1994, the Akhaura land customs station has facilitated trade with India. Recognising its commercial importance, the port was established as a full-fledged operation in 2008. It primarily functions as an export-oriented port, with an average daily export value of $200,000 worth of goods like frozen fish, cement, plastic, furniture, and food products to India.

The demand for prominent Bangladeshi cement brands like Crown, Seven Rings, Fresh, Insee, Premier, and Shah Cement is flourishing in Tripura. According to Tripura businessmen, Bangladeshi cement is now being used in government buildings, private establishments, and even houses.

Tripura lacks its own cement factory, making Bangladeshi cement the go-to choice for construction projects. The relatively lower price and higher quality compared to Indian cement have further fuelled demand for it in Tripura's markets. Currently, export price per tonne of cement ranges from $79 to $86, depending on the brand.

According to Akhaura land customs station data, approximately 22,000 tonnes of cement were exported to India in fiscal year 2022-23, with an export value of around Tk18.5 crore. So far in the current fiscal year (2023-24), about 11,000 tonnes of cement have been exported to Tripura, with an export value of Tk10 crore.

Businessmen at the Akhaura land port acknowledge that cement from the Indian state of Meghalaya also reaches the Tripura market. However, Bangladeshi cement holds an edge due to its slightly lower price and established reputation for quality. 

Currently, only five or six Bangladeshi companies are exporting cement. Businessmen believe that if other cement companies focus on marketing to expand their reach, cement exports through Akhaura could double, leading to a significant boost in the country's export earnings.

Rajib Uddin Bhuiyan, owner of the cement exporting company Suyeb Trade International, highlighted the impact of the pandemic on cement exports but expressed confidence in the current recovery. 

He said, "Every day, five to six trucks of cement are exported to Tripura, with Crown and Seven Rings being the most popular brands. Our focus is on further increasing export quantities."

Priyanath Saha, who owns Tarakeshwar Enterprise, a distributor of Bangladeshi cement in Agartala, Tripura, pointed to the absence of a cement factory in Tripura and the high cost of importing cement from Meghalaya. He credited the lower price and consistent supply of Bangladeshi cement for its rising popularity. 

It is notable that Crown cement was used in constructing Agartala's first and only flyover, and Bangladeshi cement has been supplied to various government establishments in the city. Priyanath Saha anticipates this demand to keep growing.

Shafikul Islam, general secretary of the Importers-Exporters Association of Akhaura land port, attributed the success of Bangladeshi cement to its high quality and competitive pricing. The absence of VAT on exports allows for lower export prices. 

He mentioned ongoing discussions with Indian businessmen to explore further avenues for increasing cement exports. Shafikul Islam believes that effective marketing by other Bangladeshi cement companies has the potential to double export figures.

Md Kamrul Parvez, assistant revenue officer of Akhaura Land Customs Station, acknowledged a decline in imports from India compared to the previous fiscal year. He attributed this to the current economic recession and dollar crisis. 

The government is advising and assisting businesses on focusing on increasing exports in response to this situation. The rise in cement exports reflects the success of these efforts. The customs office is expediting inspections and clearances for export trucks to facilitate the process, Kamrul Parvez said.