Cement prices yet to fall in Gujarat

Cement prices yet to fall in Gujarat
Published: 17 March 2004

Cement prices in Gujarat have remained consistent despite the Gujarat government’s recommendation last week to bring down prices by Rs 10 per 50 kg bag.  Domestic cement majors such as Gujarat Ambuja Cements, Larsen & Toubro and Sanghi Cement have not reduced prices in the retail segment, which are currently being quoted at around Rs 160-165 per 50 kg bag.  The Gujarat government had asked cement manufacturers to roll back prices to facilitate construction in the state. The cement companies had earlier rejected the proposal, but had said that discussions were still on. A week after these recommendations, prices continue to be at the same levels.

The real estate developers and builders’ associations had undertaken a one-day construction strike all over the country in protest against the rise in cement and steel prices.  A cement sector analyst said that, "Cement prices in Gujarat are definitely higher than corresponding prices in the previous year. However, the demand had been good after the monsoon and, therefore, prices are likely to settle down at these levels."