KARACHI - Cement demand in the local market increased 24 percent on Friday in 11MFY10 along with higher allocation of Public Sector Development Programme in Federal budget 2010-11. According to the sources, the cement dispatches are expected to post decent improvement. However, lower retention prices due to competition among manufacturers and shrinking export avenues, export sales down 4pc in 11MFY10 that will keep the margins in check. The budget FY11 has come up with some relief with the allocation of Rs 663b to development budget. And higher allocation of this amount to provinces is expected to be used for small dams and other small projects that will ignite healthy demand of cement in local markets. However, the growing price war between manufacturers will keep the margin in check in FY11. Hence after that the prices will improve as oversupply situation in the country will conclude, sources added.