The government had banned exports of cement on April 11 in a bid to maintain adequate supply of the material in the country.
"The step will not have any impact on cement prices. The step taken by the government is a good and sensible one. The export ban offered no assistance in making cement available in the domestic market as a majority of the exports was in clinker form," said A L Kapur, managing director, Ambuja Cements.
The company is among the largest exporters of cement and clinker via Gujarat ports.
H M Bangur, president, Cement Manufacturers' Association, appreciated the step, saying it is a progressive and timely one.
However, he said there was no clarity on the amount of restrictions lifted as the industry was yet to get a notification from the government.
In 2007-08, the country exported 3.65 million tonnes of cement and 2.37 million tonnes of clinker. A majority of the exports took place from Gujarat mainly to west asian countries.
Market players said since clinker makes up a significant part of the exports, it could not be sold in the market as there were not enough grinding units to convert the additional clinker into cement.
"It would have taken a year's time to set up new grinding units in the state," said Kapur.
However, last month, cement prices in Gujarat were slashed by Rs 5-7 for a 50-kg bag of cement.
The ripple effect of price cuts was also witnessed in the western part of Rajasthan, where cement rates were cut by Rs 2-4 a bag.
However, in Mumbai, the main western market, there has been no slashing of cement prices so far.
According to analysts tracking the cement industry, the step may not have any immediate impact on prices, but as exports pick momentum and the additional cement goes out of the market, companies might roll back the price cuts in the region slowly in the next 2-3 months.
