'Hike in freight rates may push up cement prices'
Cement prices may go up by Rs 2-4 per bag of 50 kg as a fall out of the proposed hike in freight charges by the Railways, a ratings agency said last week. The railway freight hike may potentially increase the cement price by Rs 2 to Rs 4 per bag, India Ratings said commenting on the proposal.
Railway Minister Pawan Kumar Bansal in his maiden Budget recently proposed nearly 6 per cent hike in freight rates across the board. India Ratings, which is a Fitch Group company said however that cement makers of South India may not be in a position to pass on the increased cost due to the unfavourable demand-supply situation in region.
However, cement players based in the rest of India would be able to pass on a significant portion of the cost increase, it said.