Cement prices in the south of India have risen by INR25/bag due to the ongoing unrest in Andhra Pradesh due to demands for a separate State of Telangana.
Cement is sold at INR280- 310/bag compared to INR265-285 a month ago, according to industry sources.
The increase in price has been mainly driven by acute shortage of coal for cement companies in Andhra Pradesh, which cater to demand in key southern markets apart from AP.
“As coal supply has been hit due to the general strike in Singareni, the industry is forced to import coal — which is 30 per cent costlier — for clinker production,” SVS Shetty, CEO, Anjani Portland Cement Ltd, told Business Line.
“The price may go up further if the situation continues,” he added.
A senior executive of UltraTech Cement, who did not want to be identified, said the disruption of distribution channels in the Telangana region had a cascading impact on all southern markets.
“The demand was picking up in August. But now, the price hike and problems in distribution led to decrease in consumption during September,” he said.