Cement prices in the Mumbai market, India's largest, have dropped by almost Rs 3- 5 per 50 kg bag with the retail price per bag now hovering at around Rs 168. The expected drop in prices follows the advent of the monsoon.
The fall in the priceline has been much steeper in case of the lower-end brands, with some of them quoting as low as Rs 160 a bag, dealers said.
Leading cement companies like Larsen & Toubro, The Associated Cement Companies and Gujarat Ambuja are selling at a retail price range of Rs 166-170 compared with the previous level of Rs 172 per 50 kg bag, leading dealers said.
The marketing head of a cement major said: "Though there has been no official announcement, a crash in the cement prices have been on account of dealers resorting to price cuts in order to push volumes."
An official in another cement company said it was a normal phenomenon during the monsoon, as low offtake results in a reduction in prices. However, almost all the leading manufacturers maintained that a further price cut would be prevented "by all means".
Cement prices have now dropped almost 8 per cent over the last two months, after reaching a historical high of around Rs 182 a bag. Cement users had alleged that prices have been hiked by artificially curtailing supplies.
