Indian firms begin raising prices again

Indian firms begin raising prices again
Published: 03 December 2009

A second wave of cement price rises in India is likely within a fortnight, say industry watchers. After “bottoming out” during the second half of the year, the commodity’s prices seem back on track, with a series of hikes expected in the coming two months.

There have already been two prices hikes within a week. After prices were up by Rs 5-10 for a 50 kg bag in the last week of November in western and southern India, prices rose by Rs 8-11 a bag in the Mumbai region yesterday. Stockists and dealers believe the next set of price rises would happen in the north, enjoying comparatively stable prices till now vis-a-vis the south and the west.

Non-trade cement prices had fallen by 20-30 per cent in the past three months and were back at 2005 levels in western and southern India.

Confirming the price rise in the Mumbai market, an industry insider claimed: “We can expect another round of price rises this month, to be followed by another wave in January, but this time in the north.” He did not want to be identified.

Source: Business Standard