Price cuts start to bite

Price cuts start to bite
Published: 24 May 2006

The cement sector was in focus last week, thanks to government initiatives to curb further price hikes. Cement companies are expected to lose anywhere from Rs 120-200 per tonne to the extent of the supplies made to the government. This is due to the five per cent cut in prices advised by the commerce ministry. Cement companies in Tamil Nadu and Kerela are expected to take a hit as they were planning a price hike post elections. Moreover, this is a harder blow as cement prices in Tamil Nadu were expected to go up till September-October, the time when monsoon hits the state.