Cement and clinker production in the country during the year 1997-98 has increased approximately 10 per cent each over the previous year and 52 per cent each over 1992-93. While export of both the products has witnessed a rise of 54 per cent and 66 per cent respectively over last year. Cement production in the year 1997-98 has reached to 76.73 million tonnes while clinker production was 71.28 million tonnes as against the previous year's 69.68 million tonnes and 64.88 million tonnes respectively.The spurt in production is not unusual as construction work before monsoons are generally in full swing which in turn pushes up the demand for cement and clinker. Secondly, state-owned Public Works Department (PWD) and other quasi government agencies, have to utilise the funds allocated for construction by the government at the beginning of each fiscal year. Hence the demand for cement and clinker from state-owned agencies are higher during the months ahead of the year end.These agencies try to utilise the fundsallocated before the year end for two purposes, one, the grant or allocation cannot be carried forward to the next year, second, the government will trim down fund allocations in the subsequent year if the agencies do not utilise the allocated funds during a particular year.The highest production of cement was recorded in the month of March at 7.81 million tonnes. Similarly production of clinker was also recorded highest in the same month at 6.97 million tonnes.Cement production was at its lowest in the month of April 1997 at 5.49 million tonnes whereas lowest clinker production was recorded in the month of September 1997 at 5.04 million tonnes. Cement and clinker production in the country during the past six years has seen a phenomenal rise. Production of both the products which was 50.72 million tonnes and 46.90 million tonnes (mt) respectively in 1992-93 has been on a gradual uptrend since then.Cement and clinker production in the year 1993-94 was 54.09 mt and 50.30 mt, 1994-95 was 58.35 mt and54.25 mt, 1995-96 was 64.53 mt and 59.21 mt respectively.Total export of cement during the year under review was 2.63 million tonnes a meagre 3.42 percent of total production. Last year 1.71 million tonnes of cement was exported which was 2.45 percent of the year's output.Clinker export during the year 97-98 was 1.56 million tonnes, 2.18 percent of the output whereas its export during the previous year was 0.94 million tonnes, 1.44 percent of the production. Cement and clinker was exported to areas like Shri Lanka, Middle East, Bangladesh, Nepal and few other places. The cement producers tried to make up for the domestic slowdown through exports but their hope was slashed in the last six months due to breakdown in the economies of the major countries in South-east Asia. Countries like Korea and Indonesia posed tough competition due to devaluation in their currencies which drove down the cement prices to $ 25-27 per tonne from what was $40 a tonne a year back. This has put the Indian exporters in aspot, owing to relatively high price for cement outsourced from India. Thus in the current financial, it may not be surprising if the quantum of cement export from India lowers down, compared to last couple of years.
