Companies have cut down production since they are unable to supply regular quantities to consumption centres within and outside the state owing to the non-availability of railway wagons and shortage of trucks.
JK Lakshmi Cement Director Shailendra Chouksey says, "We are able to dispatch only 50 per cent of the 11,000 tonnes cement produced daily by our plant at Sirohi. This has been the case for the last 3-4 days and consequently, the plant's storage capacity has been exhausted. As a result, the capacity utilisation had to be brought down to 50 per cent. Utilisation would come down further if the situation remains unchanged for the next 3-4 days."
The agitation has affected the availability of trucks and rail wagons and the the intra- and inter-state road and rail traffic. This has impacted cement dispatches to markets such as Alwar, Bharatpur, Dausa, Sikar and Jaipur (within Rajasthan) and to northern markets in Delhi, Haryana, Punjab and Uttar Pradesh. With a capacity of 32 million tonnes, Rajasthan is the largest cement producing state in the country. Leading companies like Ambuja and Grasim have their plants in the state.
"Demand is there but we are unable to dispatch cement due to transportation problems. We have cut down our capacity utilisation by a marginal 5 per cent," said H M Bangur, managing director, Shree Cements. Another leading cement company in the state said its plant has cut down cement production by 15-20 per cent.
Impact of diesel price hike
Chouksey said the diesel price hike of Rs 2 a litre is expected to have a bearing of Rs 3-4 on each cement bag of 50 kg. "The increase in diesel prices would add to the cost of inputs such as coal, fly ash and gypsum, which we transport through trucks. However, we would maintain the ex-factory prices as assured to the government. But the delivered cost to dealers and retailers is bound to increase," he said.