KARACHI, Oct 21: Cement exports showed a paltry increase of 0.21 per cent in the first quarter of the financial year 2012 as compared to the corresponding period of last year.

According to a press release of All-Pakistan Cement Manufacturers Association (APCMA), export to different countries via sea route dropped significantly by 24 per cent as compared to Q1 of FY11, standing at 0.857 million ton in Q1 of FY12.

Exports to India went up by 53.8 per cent but the small volume of 0.163 million tons only in the Q1 of FY12 was lower than expectation of an over 1.0 million tons increase owing to improving trade relations between Pakistan and India.

Major factor behind limited exports was a sharp increase in input cost as prices of almost all of major inputs, like, furnace oil, coal and electricity surged during first quarter of this financial year followed by rise in the transportation cost due to diesel price hike.

There was no progress in cement exports by truck via Wagha-Attari border post which if opened can substantially boost export volume, the APCMA said.

The association claimed that cost of power had surged by nine per cent during last three months from Rs7.1 per KWH to Rs7.7 per KWH followed by increasing load-shedding. The situation seems to worsen with an expected increase of Rs 3.04 per KWH in power tariff.The impact of rise in diesel, coal and furnace oil for the upcountry plants is much higher as these inputs are transported from Karachi, the APCMA said.

Gas rates also rose during the last three months by over 10 per cent for cement plants and as well as their captive power units.

Local cement sales grew by 12.23 per cent during the first quarter of current fiscal year 2011-12.

The cement manufactures of the Northern region sold 4.23 million tons of cement while Southern mills sales stood at 0.945 million ton in July-September 2011 period.