Economy & Market
Sand shortage hits AP's cement industry
Due to sand shortage faced by the housing sector in Andhra Pradesh, cement company's revenue in the state is likely to see a dip for the first quarter ending June this year.
A decline of around 15 per cent in revenues was expected on account of the stoppage of sand quarrying by the Andhra Pradesh high court starting April 1. Environmental clearances are compulsory for sand quarrying in areas beyond 5 hectare according the Supreme Court rulling.
The court decision had impacted both the supply and the open market prices of this important input, which commanded as high as Rs 30,000 per truck load affecting the construction activity. The resulting volume pressures saw a decrease of about Rs 20 per bag in cement prices.
As against the normal anticipated movement of 1.8-1.9 million tonne of cement a month in the first quarter, the actual despatches have been about 1.5 to 1.6 million tonnes.