Cement price hike throws out of gear construction industry in south India

Many government infrastructure projects slowed

{reg}The construction industry in south India has been thrown out of gear by an abnormal 40 percent hike in cement prices, reports The Times of India.

While cement prices were standing at INR 245 per 50 kg bag in northern and western parts of India, prices in the four southern states rose by INR 100 per bag, as the cement is now sold at INR 340 per bag to institutional buyers and INR 375 per bag to retailers.

The hike drove a 2.5 to 3 percent increase in the cost of the square feet of built-up area in the budget housing segment in Chennai.

Many government infrastructure projects had slowed down owing to hike in cement price.

According to cement manufacturers, the prices increase was due to severe cost pressure owing to lower utilization of their manufacturing capacity, as well as an increase in input costs like coal, power and transportation.{/reg}