Having to import aggregate from countries other than India would increase price: STO

State Trading Organisation (STO) has said that efforts are ongoing to import aggregate from three countries following the cease by India to export aggregate to Maldives; and that the local selling price of aggregate imported from countries other than India would be somewhat higher.

Managing Director of STO Shahid Ali said at a press conference today that efforts are under way to import gravel from Malaysia and Bangladesh, and to import construction sand from Pakistan.

“We normally bring in aggregate from Tuticorin. This port is located very close to Maldives. It takes vessels two days or two and a half days at most to reach there. If they go to Karachi, Pakistan, it would take five days. To go to Bangladesh it would take five days. Going to Malaysia is a minimum seven-day trip. So no matter what, the freight cost will be higher,” Shahid said.

He said that the price will hopefully not increase by too much, and that according to present indicates it is likely to be an increase of $4 or $5 per freight ton.

When asked by Sun when aggregate can be brought in from those three countries, Shahid said that it is not yet possible to specify a date, but efforts are under way in this regard and that it would take 15 to 20 days for a shipment to arrive in the Maldives after it is confirmed.

Aggregate was imported to Maldives until now under a special quota from the Indian government. The Indian Ministry of Commerce has informed suppliers that the quota for aggregate has been temporarily revoked from 15 February 2013.