Cement dealers from six coastal districts - Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, and Prakasam - met here on Friday and expressed resentment over the manner in which cement companies had been hiking prices during the past two months or so.

The dealers said the prices of cement had gone up by more than Rs 100-125 per bag fron May 1 in the state and the companies were creating an artificial scarcity by cutting down on production. It was causing great hardship to consumers as well as the dealers as they were unable to meet their commitments at previously contracted rates.

Further, they said, there was no justification for such steep hike in Andhra Pradesh, as there was no proportionate hike in cost of production.

Trinadh, a local cement dealer, said the companies were resorting to such arbitrary hikes and the dealers were not in a position to resist it. "We are not opposed to gradual and reasonable price hike but the market is not able to absorb such a sudden hike. Already, the offtake in Andhra Pradesh has suffered badly during the past two years due to various factors and the dealers were unable to liquidate the stocks with price hikes," he said.

Parasurama Raju, another dealer, said that though Andhra Pradesh was a major cement producer, the commodity was avaialable at cheper rates in other states and there was no rational explanation for it.

He said another meeting would be held, inviting dealers from Krishna, Guntur and Nellore districts as well, and an action plan would be drawn to resist the arbitrary policies of the cement companies.

>sarma.rs@thehindu.co.in

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