The demand for cement countinues to remain sluggish in the south. At present, prices in the Kerala market stand at Rs 360 for a 50 kg bag, while in Hyderabad it is slightly lower at Rs 290-Rs 295. Southern states account for one third of India´s net installed cement capacity of around 360 mn tonne. However, the companies are presently operating at a lower capacity utilisation. Prices in Delhi are at Rs 270-Rs 280 a bag now. In the East, excessive flooding and lack of sand availability have resulted in limited cement movement and a decline in prices by 4 per cent.