In a worrisome development, cement companies operating in the state have reportedly made preparations to raise prices, potentially resulting in an increase of up to Rs 10 per bag. Company directions have reportedly been sent to dealers, instructing them to implement the price hike.
The decision to hike cement prices comes on the heels of a similar communication sent by the companies on December 3, which resulted in a Rs 5 increase per bag. However, since December, the state has witnessed a price freeze due to a lockout imposed by the Adani Group in Ambuja Cement and ACC Cement Industry, prompted by a freight dispute.
It is important to note that the state government lacks the authority to regulate cement prices directly. Concerns are mounting as industry experts and consumers eagerly await the government’s intervention to address the potential repercussions of the price hike.
Over the past five and a half years, the cost of cement has witnessed a substantial escalation, soaring by Rs 150 to Rs 200 per bag. This situation has created a paradox where neighbouring states offer cement at more affordable rates, while the state itself, being a production hub, experiences increasingly inflated prices.
The anticipated price surge has sparked widespread concern among construction companies, consumers, and industry experts. The affordability of construction projects may be compromised if the cost of cement continues to rise unabated. Such a scenario could potentially hinder the overall growth and development of the state.
