India prices set to rise

India prices set to rise
15 March 2010

Cement prices across various markets in India are likely to go up by about INR20-25/bag before end of March.

Currently, the retail price of a bag of cement is at INR275 in Mumbai, INR260-270 in Kolkata, INR270-280 in Kerala, INR240-240-250 in Chennai and INR170-190 in Andhra Pradesh, according to industry sources.

“The price has gone up by INR10-20 a bag across national markets in the last three/four weeks. We are expecting this trend to continue. There is also some pressure from the Government to hold on to the prices due to fears of inflation spreading to non-food items,’’ the managing director of a cement company told Business Line.

“After a steep fall in September-October last year, the price is looking upwards. There will be at least two more rounds of price hike by the end of March,” Mr G Balaji, director - Finance, Bharathi Cement Corporation Ltd, said. The increase in price is being driven by surging demand in rural areas both in the south and north (especially in Uttar Pradesh and Bihar), apart from rising input costs, say experts.
Published under Cement News