Retail cement 10-13% dearer

Retail cement prices around the country are 10-13 per cent higher compared with prices in the last two years.

In Mumbai prices are 13 per cent higher at Rs 170 per 50 kg bag, than corresponding prices of Rs 150 per 50 kg bag, in July 2003 and 2002. Analysts tracking the sector said, "In Mumbai, L&T and Gujarat Ambuja are the major players, and it is in the interest of both these companies to maintain prices at higher levels. The higher prices, however, have been supported by a good demand."

Senior industry sources said, "The demand supply equation has improved in the last couple of years, which has led to a better pricing scenario."

According to a leading cement stockist in Mumbai, the last couple of years, prices have been depressed. However, the companies have managed to keep prices around the Rs 170 range this year, inspite of monsoon.

"The price has settled down at the Rs 165-170 per 50 kg mark and we believe that prices will remain in this region in the mid-term," a cement dealer said.