The one-two punch - Cement industry reeling from recent increases in transportation costs

The cement sector may be reeling from the 1-2 sucker punch recently received courtesy of the government and Indian Railways. In November, Indian Railways said it would increase its haulage rates by up to 31 percent for container train operators (COTs).

The two-phased increase kicked off in December with a 22 percent increase taking effect. Another increase is expected in February 2013. If that wasnÔÇÖt disheartening enough news to absorb by itself, the recent announcement that the government proposes to increase diesel prices by RS 1 every month for the next 10 months, until the price reaches a projected average of RS 50, should leave many cement manufacturers bracing for what they have alluded to in the past: higher cement prices for 2013.

Read the rest of the article in the India Cement & Construction Materials issue 10.