After a gap of two months, retail cement prices in Mumbai - the country’s largest cement market - are set for a Rs 7 hike, taking the price of a 50 kg bag to Rs 177.
Senior industry sources said companies have announced this price increase to tap the pre-monsoon demand. "Cement prices in Mumbai have been consistent in the Rs 170 range since March, while they have risen in some other markets," a senior industry official said. Cement analysts pointed out that repair work picks up in May, just before the onset of the monsoons. The improved demand has cement makers to hike prices.
Prices in the neighbouring markets of Pune and Nagpur are also expecting a hike in the next few days. A cement stockist in Mumbai said: "Once the price hike in Mumbai is sustained, Pune and Nagpur will also see a rise in prices." The retail cement price in Pune is Rs 148 for a 50 kg bag, while it is in the Rs 132-134 range in Nagpur.