Cement manufactures slash prices in Assam

GUWAHATI: Local cement manufacturers have dropped the prices by 7 to 8 percent in cement bags in Assam.

Cement manufacturers in Assam has been facing criticism for not lowering prices despite enjoying subsidies under North East Industrial and Investment Promotion Policy (NEIIPP) 2007.

Assam state government has constituted a committee to go in details of Cement pricing in Assam.

Cement prices has dropped in the range of Rs. 25 to Rs. 30 per bag. Sources in the industry said, "The price of cement is decided by various components like coal, power, transportation, royalty on mineral resources, distribution, etc. whose prices keep on fluctuating due to various reasons, thereby resulting in lows and highs in cement prices for the end consumers".

Leading cement manufacturing companies have been selling cement at Rs. 370 per bag during the last three months have now reduced it to Rs. 342 per bag.

Anil Kapoor Vice president (sales and marketing) Topcem India Limited said, "One of the primary components of the cost of cement in Assam is transportation. Cement is a highly freight-sensitive product. The average freight cost (raw materials and finished goods) since three months has been touching over Rs. 110 per bag in Assam has now reduced to Rs 90 per bag."