The price of cement in Chennai has touched a new high of Rs. 400 for a bag weighing 50 kg.
Stockists say once increased freight rate for coal and hike in excise duty on cement announced in the Railway and the Union budgets come into effect, prices would go up further.
A representative of Chennai, Chengalpattu and Thiruvallur Cement Stockists’ Association said that they had been selling cement at Rs. 400 a bag for over a fortnight.
Developers said construction activity had picked up, but manufacturers were responsible for the price rise. “Cement is sold at Rs. 260 a bag in North India. There is a 70 per cent price difference between the cement cost in North and South India,” said N. Nandakumar, president of CREDAI Tamil Nadu.
