Producers in Andhra Pradesh have increased the price of the cement by INR5-10/50kg bag from today due to rise in fuel costs, industry sources told NewsWire18.
With this hike, the retail price of cement will rise to INR275-300 rupees a bag from INR270-290 currently. The source said the price hike would apply to institutional sales, too. However, the extent of the hike for this segment will depend on the brand and local demand.
For institutional sales, the price would be INR30-40/bag lower than that for retail sales in the state, the source said.
"It (the price hike) was long (over)due..." another industry source said. The source said cement makers were in a wait-and-watch mode until December.
"Now, the cost overrun is huge. We have no option (but to increase prices)," the source said.
Although cement prices have been volatile in other parts of India, they have been stable in Andhra Pradesh for a year. The state has been facing severe shortage of power in recent months, forcing cement companies to buy power at higher rates from merchant power suppliers.