Vijayawada. Jan. 6. Cement companies in Andhra Pradesh have hiked prices by Rs 20-30, according to media reports from Vijayawada. An English language daily Hans India reported that cement manufacturers have already hiked the price. Other reports said prices of cement are likely to go up by Rs 25-30 per 25 kg bag soon.
Cement companies in Andhra Pradesh had stopped taking orders in the last10 days, which was interpreted as a signal of an imminent price rise. Current retail price of cement in Andhra Pradesh ranges between Rs 325 and 350. for a 25 kg bag. The price rise is expected to have a further debilitating effect on the construction industry in the state which is already seeing lower demand because of the Covid pandemic and other factors.
A hike in price by cement companies in Andhra Pradesh may soon be emulated by cement companies in other states also. While the cement companies are blaming the spike in price of imported coal for the spiralling costs forcing them to increase price, construction industry points out that uncontrolled price rise will affect construction activity and eventually decrease demand.
Among the south Indian states Kerala has arguably the highest price with average price per bag over Rs 425. A further price hike is sure to affect the construction sector in the state badly.
