"Continuous government intervention has resulted in uncertain price environment, which together with significant increase in input costs will have an adverse impact on margins," it said. The government recently imposed a ban on cement export to check its rising prices and control inflation. It also brought down the duty on cement import to nil last year.
Overall, demand is expected to grow by 9 per cent. The industry will inevitably experience a surplus of supply over demand on account of additional capacity of 118 million tonnes during the Eleventh Plan period (2007-12), which is expected to have an impact on domestic prices in calendar year 2009.