India Cements’ Vice-Chairman and Managing Director N Srinivasan on Thursday said there was a correction in cement prices in the market after a steep fall in the recent years.
He also stated that neither was there any cartelisation nor a shortage of cement in the market.
He was responding to media reports and charges of builders’ lobby that said cement manufacturers were increasing the prices without a rationale and wanted the intervention the State government.
“There were two statements made. One, the cement price has gone up. Second, the accusation of cartelisation by the cement producers. The factual position is these statements are not correct,” he said in a statement.
“Firstly, cement is available in the price range of ₹300-400 per bag (50 kg) in Chennai. Buyers have a wide choice to choose from 25 cement brands. So, why is there so much hue and cry and how can they accuse of cartelisation,” Srinivasan questioned.
Secondly, in 2015, the price of cement was ₹415 per bag in Chennai. In four years, it has not even reached that level. Even in Karnataka, it was ₹370 in 2015 and now not even in that level. “So, to comment about high price is not fair, when it has gone up a little bit,” he said.
He also explained that half a bag of cement is required per sq ft. Even if the price increase is ₹30-40 per bag, it comes to only ₹20 per sq ft. It is insignificant when apartment prices quoted in high rates.
Also, the builders enjoyed low price for long and it is not sure whether they passed on the benefit to consumers during the period, he asked.