According to the industry sources, despite the determination of industry bigwigs to push up the wholesale prices in the state, they have fallen by Rs 15 to 20 per bag in the current month. A 50 kg cement bag is now available at Rs 115 which was costing Rs 135 just 15 days back, said the sources. The month-long election process in the state has increased job opportunities to the construction workers, who were readily accepted to take up most lucrative assignments in the electioneering activity. This has compelled the construction activity to come to a grinding halt in Andhra Pradesh.

``The labour have been attracted by the political parties as they not only pay cash but feed them too,'' says a builder. The impact has clearly been seen on the cement despatches. A senior official of a cement major told The Financial Express that for thelast 15 to 20 days, the cement despatches have come down to over 20 per cent compared to last month. While the off-season demand in the state is estimated at over 8 lakh tonnes a month, the market received only a little over 6 lakh tonnes in August 1999, said the official.

As per the statistics available with the Cement Manufacturers' Association (CMA) here, the cement supply was reduced from 7.04 lakh tonnes in July to 6.05 lakh tonnes in August.

Interestingly, the lower demand in the state has influenced the manufacturers to increase exports to neighbouring states by selling 40 per cent of the total production of 12 lakh tonnes in the state to Tamil Nadu, Kerala and Karnataka which now increased to over 50 per cent, said the industry sources.