Govt lifts ban on cement export

NEW DELHI: With easing of prices, the government on Monday announced lifting of ban on cement exports giving relief to the industry starved of orders from the depressed construction sector. The ban has been lifted with immediate effect, according to a notification of the Directorate General of Foreign Trade.

The government had slapped a ban on cement exports in April after a sharp rise in prices. Besides, rise in cement prices had a cascading effect on other sectors.

With easing of inflation to a single digit and the slowdown in the industrial activity, the government is more worried over the deceleration in manufacturing and loss of jobs. Of the 175 million tonnes production, cement exports account for a small portion of below five per cent.

Most of it takes place from Gujarat. Demand from the real estate and construction sector has seen a sharp slowdown in the face of credit crunch and high interest rates.

Though banks have reduced interest on housing loans, it would be a long haul before the demand is revived, experts feel. "It is good step; but will have a marginal effect as 75 per cent of total exports are from Gujarat which had already been given an exemption to export ban," Cement Manufacturers' Association President H M Bangur said.

Bangur demanded restriction on imports in the wake of slowdown in domestic demand and pressure on the industry.