India: Kerala businesses protest high cement prices

India: Kerala businesses protest high cement prices
Published: 15 July 2016


The Government Contractors Association (GCA) in Kerala has hit out at the state government’s failure to control cement prices, which have reached INR430 (US$6.40) for a 50kg bag, the Deccan Chronicle reports.

The head of the GCA in Kerala, Varghese Kannampally, noted that production costs for a bag of cement are about INR70 (US$1.04). Mr Kannampally observed that in neighbouring Tamil Nadu, the state government had reached an agreement with producers to supply agreed quantities of cement for INR190 (US$2.83).

The GCA head noted that the Keralan government was reluctant to cut prices as they currently helped to support the publicly-owned producer Malabar Cements and brought in tax revenues.