Higher demand in domestic market and a strong rupee have taken a toll on cement exports this year.
Following good demand from domestic sector, cement shipments have come down by almost 30 per cent this year.
According to Cement Manufacturers’ Association, exports in the April-July period have fallen by 30 per cent, from 2.85Mt to 2Mt.
Total cement exports in 2006-07 was 8.96Mt. Experts said this year’s total export would be around 20-25 per cent lower than last year.
Companies are concentrating more on domestic market which is witnessing an increase in consumption and shortage in supply. Moreover, with an increase in the domestic price the difference between export and domestic realisation has become negligible.
Companies are realising 5-10 per cent more in domestic sales vis-a-vis exports. The strengthening of rupee against dollar has also added to the problem.
On the other hand, domestic consumption has been rising in the same period. Domestic production and sales in the April-July period of the current year stood at 55.25 and 54.94Mt respectively, up 7.44 and 8 per cent over last year’s corresponding figure of 51.42 and 50.84Mt.