Cement prices in Mumbai are set to go up again, this time by a whopping Rs 12 per 50 kg bag as companies have withdrawn the festive and monsoon discounts offered to customers. The increased prices will come into effect from Monday.
All leading cement players in the region including The Associated Cement Companies, Larsen & Toubro, Gujarat Ambuja and Grasim Industries have informed dealers about their decision, leading cement dealers said.
The prices will move up to Rs 168 per bag from Rs 155-156 range. The marketing head of a leading cement manufacturing company said, "We would roll back the discount from Monday onwards. Demand is expected to spur with monsoon as well as the festival season coming to an end."
"More importantly, the ban on sand dredging is in the process of being lifted which would further boost demand. The major construction activities that had come to a standstill is expected to start soon," said a senior industry executive.
According to analysts, the cement producers are looking for an opportunity to jack up prices back to the level of Rs 180 per bag, the five-year high prices that companies had achieved earlier this year by cutting production levels.
