TN builders to import cement to beat rising prices

As the cement prices in the state hit the roof, builders from Tamil Nadu have decided to import cement from countries like Pakistan and Bangladesh.

An order has been placed for 1 million tonnes of cement, according to industry representatives, who said the prices of imported cement would be 44 per cent lower than local market price.

N Nandakumar, secretary, Confederation of Real Estate Developers’ Associations of India, said that a month ago, cement price was Rs 160-165 per 50 kg but has gone up to Rs 260 now. The estimated price of the imported cement would be around Rs 180, including delivery cost at the site.

“We are not able to understand why the prices increased suddenly in the domestic market when the raw materials for cement production have not risen in the last one month. How can the end product price alone can increase?,” he questioned.

The Association met the cement manufacturers and discussed the price rise, “but they did not justify the increase in price rise,” said Nandakumar.

He said that the Association had also taken up the issue with the state government, which accounts for almost 50 per cent of the cement demand in the state.

Of the 1 million tonne import order, one third would come from Bangladesh and the rest from Pakistan and Iran. Cement prices in the state starting rising last month when manufacturers cut down production citing lack of demand.