Sharp drop in cement prices in state

Cement prices have seen a sharp decline in the state. The prices had shot up to nearly Rs 300 a bag in the city in early July. They have now plummeted to Rs 230-240, coming down by as much as Rs. 60 as compared to Rs. 20 to 25 rupees in the neighboring states.

The fact that sand is in short supply is a major contributor to this drop in cement prices in AP. However, the sand problem is likely to ease soon and from all indications, the construction sector is picking up again.

Sources in the industry believe that the prices are likely to increase from October onwards.  With the diesel price hike, the  transportation costs had gone up and  with the attendant power cuts, the  cement industry as a whole, had suffered.

-Siva@sakshipost