Sanghi Cement, a Gujarat based manufacturer, which has recently doubled its capacity is said to have triggered a price fall in Gujarat. Hemant Pandey of Sanghi Industries, however, said that the company was not responsible for the price fall. He said, "The prices have weakened in the state because of three to four factors in this month. First, because of Navratri, everything comes to a standstill during Navratri. Most of the labourers are out of the construction site, most of the construction sites were closed. Between the first till the 13th of the month was the inauspicious period of ’Shradh’.
"People have continued to dispatch at the levels they were doing last month hence, there was an oversupply situation in the market and that is the reason why there was a softening of prices in Gujurat," he added. Pandey says that the prices will move up from the first week of November. "The price fall is between Rs 15-20. It will be recovered by November 15," he said.
Commenting on the effect of the price fall in Gujarat, on Mumbai’s market, Pandey said, "The price in Gujurat is at Rs 120-125 per bag, it has come down from Rs 140-142. All the other companies too, have taken the price cut. The fall in Gujarat prices has a bearing on the fall in Mumbai prices, the markets like Surat and Vapi affect prices in Mumbai. Cement flows in a direction,. If there is a big price difference in Mumbai, since it was at Rs 150 plus, and since prices came down to levels of Rs 135 in Gujarat. Cement is flowing freely at levels of Rs 130-135 hence, the fall in prices in Mumbai."