Due to the ongoing agitation in Andhra Pradesh for a separate State of Telangana, cement has turned costlier by about Rs 25 a bag in south India
Cement is sold at Rs 280 - Rs 310 a bag compared to Rs 265-Rs 285 a month ago.
The increase in price has been mainly driven by acute shortage of coal for cement companies in Andhra Pradesh, which cater to demand in key southern markets. The price may go up further if the situation continues.
Coal is used as a source of energy in cement production. Its price is an important factor as it generally accounts for about 40% of cement prices.
The disruption of distribution channels in the Telangana region had a cascading impact on all southern markets.
The demand was picking up in August, 2011. But now, the price hike and problems in distribution led to decrease in consumption during September. The cement demand in the south India was at 2.3 crore tonnes in August 2011.
Cement is sold at Rs 280 - Rs 310 a bag compared to Rs 265-Rs 285 a month ago.
The increase in price has been mainly driven by acute shortage of coal for cement companies in Andhra Pradesh, which cater to demand in key southern markets. The price may go up further if the situation continues.
Coal is used as a source of energy in cement production. Its price is an important factor as it generally accounts for about 40% of cement prices.
The disruption of distribution channels in the Telangana region had a cascading impact on all southern markets.
The demand was picking up in August, 2011. But now, the price hike and problems in distribution led to decrease in consumption during September. The cement demand in the south India was at 2.3 crore tonnes in August 2011.
