Cement prices in India are likely to fall by INR3-INR5/50kg bag due to excess supplies in the market, a senior trade official said Wednesday.
"There is a lot of oversupply in the market, which is putting pressure on prices," said the official, who keeps a close watch on price trends.
Cement companies have aggressively added capacity over the past few years. While demand too has risen, there is still plenty of capacity to spare.
The official said the pressure on prices is less in eastern India because of lower capacity additions there compared with other regions.
The prices are likely to fall further when the June-September monsoon sets in completely as heavy rains will delay construction activities.