Price of cement in the retail market of Telangana has moderated by about ₹40-50 per bag, depending upon the manufacturer, for bulk purchases and about ₹20 for retail sales, in the past few days.

“The steep correction has come in after the mediation of Chief Minister K Chandrasekhar Rao with the builders and developers and the cement manufacturers,” according to C Sekhar Reddy, National President of Confederation of Real Estate Developers Associations’ of India.

Further reduction

“We expect the prices, which had shot up abnormally by about 50 per cent in the past two months from about ₹210 to about ₹320, and are now being supplied for about ₹260 to ₹270 per bag for bulk consumers, to moderate even further,” he said.

S Anand Reddy, Joint Managing Director of Sagar Cements, told Business Line , “The prices are ruling steady for some time and we expect good demand to come in. Manufacturers have passed on cuts of ₹20-25 per bag to bulk buyers as assured but retail rates continue to vary, depending on the brand. They are in the range of ₹295 to ₹320.”

Unable to take such sudden surge in cement prices, the Credai and other developers associations had announced a cement purchase holiday.

Underwrite

Asked about the construction companies’ efforts to develop a cement unit under a cooperative mode, Sekhar Reddy said this was still some way off. “Several cement manufacturers and developers have approached us. However, no decision has yet been taken on this,” he said.

“Credai and the developers’ community are considering the option of underwriting some cement manufacturers’ capacities. Such a move would be a win-win situation for both cement manufacturers, who would have a dedicated customer base, and us, who would have a supplier. Such an arrangement could be worked out by extending working capital,” he added.

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