Govt sees cement prices stabilising at Rs 200 a bag

New Delhi, May 15

The Government is expecting cement prices to settle down in the region of Rs 200 for a 50-kg bag within the next few days with a standard market fluctuation of approximately 10 per cent across the country following assurance from cement manufacturers to bring down prices, the Minister of State for Industries, Mr Ashwani Kumar, told Business Line.

“Prices have already come down in the western region which has the highest demand. Prices have softened in Gujarat, Maharashtra and Rajasthan. Now companies like Dalmia Cement, which has a strong presence in South India, has said they will cut prices by Rs 3 a bag. The Jai Prakash Group has also assured that it will reduce prices by up to Rs 7.50 a bag,” the Minister said.

The Finance Minister, Mr P. Chidambaram, was also optimistic on a further cut in cement prices. “I think there is a scope for significant reduction in cement prices,” he told reporters after the Cabinet meeting here.

On its part, the Government has assured the cement manufacturers that their demands related to abatement of excise duties and coal linkages will be considered sympathetically.

Mr Kumar said that the total excise component for a bag is around 30-35 per cent and the cement makers have agreed that if any excise benefit is extended to the industry it will be passed on to the consumers.

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