As per the figures released by the Cement Manufacturers Association (CMA), production and despatches in May this year increased by 16.30 per cent and 16.10 per cent respectively over the corresponding period of the previous year 1998-99. During May 1999 the industry has produced 8.14 million tonnes of cement as against 7.00 million tonnes in May 1998. Despatches were higher at 8.09 million tonnes compared to 6.97 million tonnes in May 98.

The first two months of the fiscal 1999-2000 has been very good with the industry posting a 21.26 per cent growth in despatches and a 22.60 per cent growth in production for the period April-May on a year-to-year basis. The aggregate production and despatches in the first two months of 1999-2000 was 16.27 million tonnes and 16.14million tonnes compared to 13.27 million tonnes and 13.31 million tonnes in the corresponding period of the previous year.

The cement prices have firmed up in view of pick-up in demand. Manufacturers in West have jacked up the prices in the last couple of months taking advantage of bullish demand. With many states in the Western India going to polls later this year, infrastructure construction activity is reportedly in full swing to ensure completion of the projects before the monsoon sets in. Some hike has also been effected to ensure that price fall during the monsoon season would not be below current levels.

In South too, demand has been good especially in Andhra Pradesh which also goes to polls later this year. In both Tamil Nadu and Kerala demand is good and most plants in South are working at full capacity. The manufacturers here have hiked prices since March by about Rs 16 to Rs 20. No further hikes have been implemented in order to ensure that there is no significant inflow of stocks from otherstates. The South-West monsoon would not affect cement consumption in South in a big way. Consumption is expected to be good till September-October when the North-East monsoon sets in.