Firm input costs jack up cement prices
It is learnt that owing to the rise in inputs costs, including power and fuel, cement price has risen by about Rs 15 a bag of 50 kg in key markets across the country in the past few weeks.
Owing to non-availability of power, especially in Andhra Pradesh and Tamil Nadu, cement manufacturers are importing coal resulting in higher cost of production, reports shows.
A bag of cement now sells between Rs 300 and Rs 340 in Mumbai, Chennai and Hyderabad, reports indicate.
RC Sodani, Director and Chief Executive Officer, JSW Cement,
said prices have gone up in almost all markets. According to a senior executive of ACC, the increase was steeper in the southern markets than in the North. There has been no big change shift in the demand scenario across the country, he added.
In Andhra Pradesh, new cement plants have to pay more for power.
The price ranges from Rs 300 a bag in Hyderabad to Rs 320 in the Rayalseema districts of Kadapa and Ananthapur. The increase has been quite sharp as just about a month ago, the same bag would have been available for Rs 275-280 in Hyderabad.