The demand for cement has been low due to decreased construction activity hampered due to prolonged rains, cement informed.

While export of both the products has witnessed a fall of 21 per cent and 5 per cent respectively over similar period of last year. Cement production in H1 1998-99 has reached to 37.64 million tonnes while clinker production was 34.08 million tonnes as against the previous year's 35.84 million tonnes and 33.77 million tonnes respectively.

Cement and clinker production in the country during last six years has seen a phenomenal rise.

Production of both the products which was 50.72 million tonnes and 46.90 million tonnes (mt) respectively in 1992-93 has been on a gradual uptrend since then.

Cement and clinker production in the year 1993-94was 54.09 mt and 50.30 mt, 1994-95 was 58.35 mt and 54.25 mt, 1995-96 was 64.53 mt and 59.21 mt respectively.

Total export of cement during the 1997-98 was 2.63 million tonnes a meagre 3.42 percent of total production. 1.71 million tonnes of cement was exported in 1996-97 which was 2.45 percent of the year's output.

Clinker export during the year 97-98 was 1.56 million tonnes, 2.18 percent of the output whereas its export during the previous year was 0.94 million tonnes, 1.44 percent of the production. Cement and clinker was exported to areas like Shri Lanka, Middle East, Bangladesh, Nepal and few other places. The cement producers tried to make up for the domestic slowdown through exports but their hope was slashed in the last six months due to breakdown in the economies of the major countries in South-east Asia.

Countries like Korea and Indonesia posed tough competition due to devaluation in their currencies which drove down the cement prices to $ 25-27 per tonne from what was $40 a tonne a yearback. This has put the Indian exporters in a spot, owing to relatively high price for cement outsourced from India. Thus in the current financial, it may not be surprising if the quantum of cement export from India lowers down, compared to last couple of years.