Bill protecting interests of local cement producers approved by NA committee

Bill of amendments to the laws on State Fee and Notification about Starting Activity which defends the interests of cement producing factories has received positive conclusion at the NA's Economic Affairs Standing Committee session today.

Briefing on the bill, economic development and investments minister Tigran Khachatryan said that with the amendments the government aims at defending the positions of the cement producers in Armenia.

Khachatryan said that in 2018 sharp changes took place in Armenia’s cement market with the imported cement starting having noticeable weight in Armenia’s consumption market. The minister said the volume of imported cement grew 3,5 times making 180,000 tons in 2018. Out of 730,000 tons of consumed cement 180,000 was imported and 550,000 was of local production.

The minister said due to its low price the Iranian cement has quite considerable share in the market as the ready cement is sold on the border by 17-18 USD.

Khachatryan said the government proposes setting fees for importing cement amounting to 22,000 AMD per ton.

The government representative said that the local producer has confirmed that in near future there is a possibility of reducing the price by 6-7 thousand AMD during this year.

Chairman of the committee, lawmaker Babken Tunyan said that with the same principle fees may be set on all imported products which is not acceptable.

“Of course, we need to protect the local production, but it is also necessary to understand what will happen next, how we will promote the development of the branch. I have offered to set the fee temporarily, for a year. We will gather in a year and discuss the developments in the market,” Tunyan said.

The committee has unanimously approved the bill.