The monsoon of 2013 was the best monsoon the country has seen in the last 20 years. Though that was good news for agro sector, it had a cascading impact on demand for cement in the country. In December, prices of cement across India on an average were down by Rs 15 a bag. Western India saw the highest fall in prices. Prices in Pune declined the most by Rs 30 a bag, while in other markets, it decreased Rs 15-20 a bag.
Construction activity has remained weak throughout the country, especially in pockets where there is a ban on sand mining. The industry’s operating profits too, were nearly half, compared to last year.