Political impasse hurts cement demand

Chennai : CHENNAI: Cement consumption in India fell for the first time in nearly two decades during the April-June quarter as political impasse in large consumer states holds up infrastructure and realty projects. Demand fell by 0.68% during the period compared with the corresponding period last fiscal. Cement consumption is a key indicator of economic activity.

The Telangana issue in Andhra Pradesh and mining scams in Karnataka took a toll on the cement offtake in these two big consumer states. In Andhra Pradesh, demand contracted by 21% and in Karnataka by 8.04%, according to data from Cement Manufacturers' Association (CMA). Two manufacturers, Gujarat Ambuja Cement and ACC, are not members of CMA and hence their data is not included.