SICMA assures Tamil Nadu govt to contain cement costs

11 Apr 2022 CW Team

The South Indian Cement Manufacturers Association (SICMA) had assured the state government to contain the cement prices.

The Association sought the government’s support to surge over the coal shortages, affecting various operations, resulting in higher operations costs.

This assurance comes during the unprecedented spike in the cost of various construction materials, including cement, in the last two years, which adversely affected builders and developers.

SICMA representatives, Ramco Cements, India Cements and others met state industries minister Thangam Thennarasu.

President of SICMA, N Srinivasan, told the media that there had been a steep rise in the price of every input material for cement, especially coal.

He said that despite the commodity prices having increased and the Ukraine crisis affecting petroleum products, transport costs and packing materials, the industry would strive to contain costs.

He added that compared to prices a year ago, the wholesale price index of cement has dropped by 3%.

According to a statement, SICMA highlighted that Tamil Nadu is being deprived of domestic coal from Singareni or western coalfields and is further depending on imported coal for power supply and fuel.

The cost of imported coal has increased by 4-5 times in the last few months. The ongoing Russia-Ukraine war has lowered the availability of coal.

Now, new coal consignments are not only costlier but also difficult to source, urging the government to find new ways to help the industry.

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Also read: Cement production may be impacted as coal and pet coke costs surge

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