Plans afoot to cool Price of cement via imports

As the cement prices begin to hit the roof, some of the builders from Tamil Nadu have decided to start importing cement from countries like Pakistan and Bangladesh. Industry representatives have said that order has been placed for a million tonnes and they have added prices of import cement is 44 per cent cheaper compared to local market price.

N Nandakumar, secre-tary, Confederation of Real Estate Developers’ Associa-tion of India, said that a month back cement prices were around Rs 160-165 per 50 kg bag which has gone up to Rs 260 now.

He noted, estimated price of the imported cement is around Rs 180, which includes delivery cost at the site.

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

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

He added, the Association also taken up the issue with the state administration, which consume almost 50 per cent of the Tamil Nadu cement demand.

Nandakumar said various builders have placed orders with overseas buyers to consume a million tonne of cement. One third of which are expected to come from Bangladesh rest from Pakistan and Iran.

Cement prices in Tamil Nadu starting rising last month with manufacturers cutting down production citing lack of demand.