Economy

Cement goes up by Rs 6/bag in Mumbai

| | Updated on: Mar 01, 2011
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Cement has become costlier by an average of Rs 6 per 50 kg bag in Mumbai with other cities and regions also likely to raise prices following increase in duty in the budget. Cement is a regionally traded commodity and its price varies from region to region depending upon the demand—supply dynamics of a certain area.

“The price of cement has gone up by Rs 6 to around Rs 275 a bag of 50 kg now in Mumbai. Players in other regions might follow the suit soon,” Cement Dealers’ Association President Sanjay Ladiwala told PTI.

In the budget presented yesterday, the Finance Minister Mr Pranab Mukherjee proposed 10 per cent ad valorem plus Rs 160 per tonne as excise duty on cement’s retail sale prices if they exceed Rs 190 per bag. Till now there was a 10 per cent duty on retail sale prices of cement.

The new measure has resulted in an additional Rs 8—9 duty burden per bag for cement makers.

The current price of cement on an average is Rs 250 per bag of 50 kg across the country.

North India’s largest cement player Shree Cement said it has not effected any price rise so far and may mull revising in a week after going through the Budget proposals minutely.

“We have not increased the price, not by a single penny. We don’t intend to do anything till we go through the finer prints in the Budget proposals,” Shree Cement’s Managing Director H M Bangur said.

Nitin Gupta, Partner, Ernst and Young, said any rise in the price of cement in the western and northern regions of the country could be justified given the current demand scenario of the building material in these regions. “However, I don’t think, there will be any immediate rise in the Southern market given its current oversupply scenario. No major changes is also likely in East and Central regions,” Gupta said.

Published on March 01, 2011

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