LAHORE The cement sales during the month of October posted an increase of 0.74 percent while domestic consumption enhanced by 5.77 percent to 2.088 million tons. According to cement despatch data released by APCMA, cement despatches in October 2011 were nominally higher than the 2.923 million tons including exports, achieved during the corresponding month last year. Compared with October 2010, domestic consumption of cement increased this October 2011 by 5.77percent to 2.088 million tons but the growth in sales was neutralized by a 9.71percent decline in exports to 856,769 tons. Against exports of 529,589 tons to Afghanistan in October last year, exports declined to 489,398 tons during the same month this year. Exports to India though, increased substantially from 43,270 tons in October last year to 89,778 tons this October. Exports by sea to destinations other than India declined from 375,642 tons to 277,593 tons. , which is worrying given the huge surplus capacity available in Pakistan. An APCMA spokesman said that the industry has an installed annual capacity of over 44.217 million tons which is operating at a low of 71.00pct. He said that the industry has been posting huge losses in the last three years. due to steep rise in input costs and low capacity utilization owing to sagging demand in the domestic sector. He said that cumulative bank loans of the industry have increased from Rs. 98.2 billion in 2006-07 to Rs. 125.3 billion this year. Lower retail rates of cements due to low market uptake are pushing many mills to the verge of collapse, he added. Giving details of the input costs, he said that the furnace oil prices have increased from Rs. 39,137 in 2009-10 to Rs. 60,380 per ton in 2011. The coal prices increased from $75.9 per metric ton in 2009-10 to $116.3 per metric ton. Electricity rates, he added, have surged from Rs. 6.2 per unit in 2009-10 to Rs. 8.2 per unit. Diesel rates, he continued, increased from Rs. 69.3 per liter in 2009-10 to Rs. 93.2 per liter. Spokesman APCMA further said that the increase in the rates of petrol, natural gas, and paper bags used in packing of the cement have also increased substantially. The cement price in Pakistan is about 25 percent lower than in neighboring India. He said that Pakistani industry has become hostage to deep recession prevailing in the country for last four years and has been unable to pass on the input costs to the consumers. Exports remained in the doldrums as the required facilitation from the state was not provided due to withdrawal of inland freight equalization.