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Production was down one per cent in May at 16.67 million tonnes (mt) against 16.84 mt in April, while sales slipped to 16.45 mt (16.65 mt), according to the nt Manufacturers Association. However, on a year-on-year basis both production and despatches were up 12 per cent and 11 per cent. Between April and May, the industry production and despatches rose 12 per cent each at 33.51 mt and 33.10 mt, respectively. A slowdown in construction activities due to the general elections and distribution constrains on the back of logistics problems has hampered sales, said a cement company official.

However, the demand for cement is expected to remain strong with the stable Congress-led government chalking out big spends on infrastructure projects. “The cement industry will witness a growth of 8-9 per cent in FY’10,” he added. ACC, Ambuja Cement ACC output in May was down two per cent at 1.81 mt on a sequential basis, while despatches were up one per cent at 1.82 mt (1.80 mt). Ambuja Cement sales were up 6 per cent at 1.64 mt and the output was down marginally at 1.64 mt (1.65 mt). The average price in May across the country was Rs 247 for a 50 kg bag.