Hyderabad: The cement industry in Telangana on Tuesday expressed its inability to decrease the price of cement despite protests from real estate companies over what call a sudden and artificial increase in prices.
Addressing reporters here on Tuesday, My Home Industries executive director S. Sambasiva Rao said, “Presently, the total cost of a cement bag is around Rs 335. This price includes the manufacturing cost of Rs 185- 200 and excise duty, VAT and transportation. All these put together amounts to Rs 335 a bag. And if the price is less than the average, the cement companies will incur huge losses.”
Cement companies have claimed that the cost of construction materials such as sand and bricks have increased along with inflation. However, cement prices remained low leading to losses to the companies.
Representatives of the cement companies that attended the meet include Penna, Parasakti, Bhavya, and The India Cements.
According to Sagar Cements joint managing director S. Anand Reddy, “due to losses, many companies were not in a situation to pay sales tax and hence were forced to pay in installments.”
The price of cement in Hyderabad is about Rs 315 per bag whereas in Vizag, it is Rs 325, which is less than the average price Rs 335, causing losses resulting in the closure of several companies while others are reeling under its effect.
The construction activity was also got affected by agitation in united AP, which led to a decline in the demand.
Over the years, a few companies were sold at a discounted price, while others are on the verge of closure due to the losses and are at cross roads as the banks are not willing to support under performing companies.
