The government has lifted a ban on export of cement following a lull in construction activity and the consequent easing of demand pressure on its prices.

The government had imposed a ban on cement exports in May to increase cement availability within the country and stem the rise in prices.

Reports quoting commerce ministry sources said cement exports have been allowed since prices have stabilised and it was ''no longer felt necessary to continue with the export ban."

While cement prices have not come down with a lull in construction activity and a fall in demand over the past few months, cement companies have deferred capacity additions and, in some case cut back production to avoid a market glut.

The government and the RBI had announce a slew of steps, including reductions in duty and interest rates and a massive infrastructure spending plan to arrest the slowdown.

Cement production in the country declined to 14.34 million tonnes in November from 14.76 million tonnes in October.

Cement exports from the country during November 2008 fell to a mere 0.32 million tonnes, down 15.8 per cent in the same month the previous year.

Cement despatches, however. were higher by 11.17 per cent at 14.43 million tonnes, against 12.98 million tonnes in November 2007.

Clinker exports, too, showed a growth  of  11.11 per cent at 0.30 million tonnes against 0.27 million tonnes in November 07.

Total cement production capacity at the beginning of the year 2008-2009 stood at 198.30 million tonnes, which is expected to have gone up to 206.46 million tonnes, after taking into account capacity additions and new projects.