Cement to be expensive by Rs 10-12 a bag
Cement

Cement to be expensive by Rs 10-12 a bag

The rejig of excise duty on cement in the Union Budget 2011-12 may spike retail prices by Rs 10-12 a bag and add to the cost of construction. The Government's decision has come even as the sector is reeling under falling demand and rising input cost.

Fuel cost has risen by about 30 per cent, power tariff by 12-15 per cent and freight cost by 10-12 per cent. The industry had registered a demand growth of just 2.6 per cent in the December quarter against 7-8 per cent in the comparative quarter last year. With the demand growing by just 5.4 per cent in nine months, ending in December, the industry may post a growth of just 7 per cent this fiscal against the 10.8 per cent achieved.

The rejig of excise duty on cement in the Union Budget 2011-12 may spike retail prices by Rs 10-12 a bag and add to the cost of construction. The Government's decision has come even as the sector is reeling under falling demand and rising input cost. Fuel cost has risen by about 30 per cent, power tariff by 12-15 per cent and freight cost by 10-12 per cent. The industry had registered a demand growth of just 2.6 per cent in the December quarter against 7-8 per cent in the comparative quarter last year. With the demand growing by just 5.4 per cent in nine months, ending in December, the industry may post a growth of just 7 per cent this fiscal against the 10.8 per cent achieved.

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