Exports of cement from the mainland are banned, Deputy Economy Minister for Commercial Affairs Mehdi Ghazanfari announced, MNA reported.

Based on an agreement earlier reached between cement producing companies and the ministries of economy and industries & mines, parts of the revenues earned from cement exports were to be spent on the purchase of clinker - the principal raw material used in cement production- and in the building of new cement production factories, the official said.

He added, "Unfortunately, the objectives of the agreement were not achieved."

The country’s cement production in the past Iranian calendar year (ended March 20, 2007) reached 35Mt and the figure is expected to soar to 42Mt in the current year, Fars news agency quoted the official as saying.

The shortage of clinker supplies, due to its price hike in international market, is expected to inflict yet another blow on the real estate sector, now experiencing an unprecedented slump. The retail price of cement, one of the major construction materials, is rising in the local markets due to higher production cost.