Cement demand keeps dropping in southern states of India

Cement units in Andhra Pradesh incurred loss

{reg}Indian cement production units in the southern states of Andhra Pradesh (AP) and Telangana (TS), are in severe strain due to a steep decline in demand from the last three years, reports Business Standard.

Demand in Andhra Pradesh dropped from 2.5 million tons a month to no more than 1.3 million tons. Cement consumption in irrigation and weaker sections housing sectors, which used to be 350,000 tons and 300,000 tons a month respectively, has now come down to zero due to policy paralysis.

Cement units in the state have incurred loss during the first quarter of the current financial year. And even though demand is expected to pick up from January, it will take about 2 to 3 years to reach peak level according to cement manufacturers in the state./reg}