Slowdown compels govt to lift ban on cement
India has lifted the ban on cement exports. With the price pressures having eased and domestic demand depressed due to a slowdown in construction activity has brought about this move.
The director general of foreign trade said in a notification it had allowed cement exports “with immediate effect”. The government had banned cement exports in mid last year to increase local supplies and check rising prices.
The reduction in construction activity due to high interest rates and a trimmed demand for new homes has companies defer expansion plans.
India’s cement output was 14.34 million tonnes in November, less than 14.76 million tonnes produced in October.
In December, the authorities announced a slew of steps including interest rate cuts, a massive spending plan and duty cuts including that for cement, to arrest the slowdown.