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Dwindling cement rates in TN
Posted on: 20/Nov/2017 12:16:48 PM
Compared to October, price of cement has dipped by Rs 10 to Rs 20 per bag this month. Ban on sand mining and poor monsoon are the reasons for such dwindling rates, say analysts.
A research firm in Kerala and Tamil Nadu states that the largest dip in cement rates in month on month basis is Rs 20 per bag. In Andhra Pradesh and Telangana, the price dip at the maximum is Rs 13 per kg per bag in a month on month basis.
After a dip of Rs 16 per bag in October, this is another sharp dip in rates for the second consecutive time. Now, a bag of cement is sold for Rs 332.
Comparing October months of 2016 and 2017, this year, there is 26 percent decline in demand for cement in Tamil Nadu. Sand mining ban and drought are the possible reasons for the dip. A marginal increase in demand is expected, but this is uncertain too, say experts.
In Tamil Nadu, there is Rs 10 dip in price per bag, and in Bengaluru, the dip in rate is Rs 5 per bag.
By mid of November, there is up to 3 percent decline in rate and it has come to Rs 287 per bag by the middle of this month. In October, the rate was Rs 296 per bag.
Experts say that the cement rates would increase by Rs 15 to 20 per cement bag in Andhra Pradesh and Telangana, and Rs 5 to 10 per bag in Karnataka. There will however not be any change in rates in Tamil Nadu though.
