Over the next weekend, cement plants are expected to raise prices in South India by nearly 25 rupees per bag, people in the know told CNBC-TV18. It should be noted that in the last two weeks, prices have been increased by Rs 30 to 50, depending on the region, the quality of the cement and the producer. In other words, it is an ongoing process.
The main reason for this price increase is that input costs have increased due to the scarcity of coal. Along with this, diesel costs are also boiling. The cement manufacturers are also waiting for the end of the monsoon.
India’s cement production in the past five months has jumped 44% year-on-year and 2% from the pre-pandemic period April to September 2019, to reach 142 million tonnes (MT) , according to a report by rating. ICRA agency. The agency expects pan-Indian cement production to increase by around 12% to 332 MT in the current fiscal year and 358 MT in 2022-2023.
CIFAR expects industry utilization levels to remain at moderate levels of 62-64% in 2021-2022 and 2022-2023, due to the capacity additions. Overall, in the first half of 2021-2022, cement prices were 4% higher year-on-year. “This is mainly due to the increase in input costs of energy, fuel and freight in recent months,” he said.
(Edited by : Abhishek Jha)