Economy & Market
Cement prices rise 50 per cent in Bihar as supplies fall
In past few months, cement prices in the eastern state have jumped almost 50 per cent due to fall in production from one of the biggest suppliers, even as construction activity continues to boom across the state.
The eastern state, which does not have any major cement producing plant and relies on supplies from plants located in Satna, Madhya Pradesh, is grappling with an unprecedented rise in cement prices, which have surpassed that in Gujarat, one of the largest cement consuming states in India.
Compounding the situation is the shutdown of a unit of Prism Cements in Satna, which has a significant share in the Bihar market.
"Clinker production in Unit II at Satna will be temporarily suspended as there has been damage to the blending silo. Cement production and dispatches shall continue", stated a Prism Cement spokesman.
Also, operations, both for clinker and cement, at Unit I at Satna continue to be normal." Prism has the capacity to make 5.6 million tonnes a year.
Hari Kishore Singh, a cement stockist in Patna, said he is currently selling cement at about Rs 365-385 for a 50 kg bag. The price of the same bag used to cost Rs 230-250 two months ago.
"There is a supply shortage in this peak construction season, so prices have gone up.