The cement industry has seen a decline in exports during April-July in the current fiscal. As per the Cement Manufacturers' Association (CMA), exports stood at 0.86 million tonne against 0.88 million tonne in the corresponding period in 2001-02.
Exports of clinker, however, increased. This year, India exported 0.6 million tonne of clinker against last year's 0.3 million tonne.
Also the cement industry is facing a threat from China. "China has been eating into India's market share. Cost competitiveness has been a driver of growth for the industry there. Inland transport is heavily subsidised in China, which acts as a catalyst," A V Srinivasan, secretary general, CMA said.
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This apart, neighbouring countries which have been India's major markets, have added substantial grinding capacity. "This in turn impacted exports," Srinivasan said.
The CMA has already appealed to the commerce ministry, urging it to lower the railway freight charges, which would bring down the transport cost, that is necessary to boost export. The association has also urged the ministry to increase import of duty-free coal.
"However the government has taken no decision on the issue yet," Srinivasan said.
The present capacity of the cement industry is 140 million tonne and the consumption in the domestic industry is likely to be around 100 million tonne.
India exported 5.14 million tonne of cement in 2001-02, of which 3.38 million tonne was cement and 1.76 million tonne was clinker.
However, owing to delayed monsoons, the sector saw a 27 per cent growth during in July alone compared to the corresponding month in 2001-02. In the domestic market, housing sector, which includes construction and repair, has been a major growth driver for the industry.