Cement prices up 50 pct in five years

The average price of cement has gone up by nearly 50 per cent in the last five years to Rs 243 per 50 kg bag.

The average price of cement has gone up by nearly 50 per cent in the last five years to Rs 243 per 50 kg bag in 2009-10 buoyed by increased construction and real estate activities.

Quoting information provided by Cement Manufacturers’ Association and two leading manufacturers,Commerce Minister Anand Sharma informed the Lok Sabha in a written reply that cement’s average price was Rs 163 per 50 kg bag in FY’06.

The price rise was the stiffest in 2006-07 as it became dearer by Rs 43 per bag to stand at Rs 206 but in 2009-10 it just went up by Rs 5 a bag from Rs 238 in 2008-09.

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During the 2007-08 fiscal,average price of cement was Rs 238 a bag.

However,as cement is largely a regional product and the price of it depends upon the dynamics of demand-supply in that particular region,cement’s price also varies from region to region.

This is evident from the fact that when a 50 kg bag of cement cost Rs 234 in Bhopal in 2009-10,it was Rs 262 in Guwahati,Rs 252 in Chandigarh and Rs 306 in Jammu.

India had produced 201.06 million tonnes of cement in 2009-10 and consumed 198.04 million tonnes during the year.

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Exports fell from Rs 881 crore in 2008-09 to Rs 665.73 crore in 2009-10.

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