Indian producers signal possible price hike

Indian cement producers have indicated that prices may have to be hiked to absorb increased freight charges as diesel prices are hiked.

Speaking to the Hindu, JK Lakshmi Cement Whole-time Director Shailendra Chouksey said: “The increased freight is not only going to impact the distribution of finished goods but also on a total of 3Mt freight. I don’t think the industry is now in a position to absorb this.”

Following the INR5.62 a litre hike in the price of diesel last evening, apex truckers’ body All India Motor Transport Congress (AIMTC) today effected a 15 per cent increase in the freight charges across the country. AIMTC claims to have around 80 lakh trucks under its fold.

Commenting on the impact of the hike in diesel prices, one major cement producer said the hike was indeed a steep one and would certainly raise the distribution costs for cement makers, which could not be absorbed.

Cement prices have recently come down due to monsoon and it is now trading in the range of INR250-260/50kg bag across the country.