Cement manufacturers have indicated to the State government that they will slash prices by ₹25 per bag.
A letter from the South Indian Cement Manufacturers Association president N. Srinivasan, addressed to the Principal Secretary, Industries Department, on Tuesday said in deference to the request of the Chief Minister, cement manufacturers were willing to reduce the price, to the common consumers, from the current levels by ₹25 per bag. On Tuesday, the price of cement hovered between ₹420 and ₹490 per 50 kg bag.
The retail price of A grade cement stood at ₹490/bag, B grade at ₹450/bag and C grade had a price tag of ₹420/bag. During the first week of May retail cement prices shot up to ₹520 per 50 kg bag, up from ₹460 in May. Industry sources also noted that last week prices went down by around Rs.10/bag.
Suresh Krishn, State president, The Confederation of Real Estate Developers Association of India (CREDAI), pointed out that a further reduction is needed. “Prices need to be brought down to pre-COVID-19 levels,” he said, adding that the government was quick enough to help the real estate industry to solve this issue.
He also noted that the industry is yet to get a clarity whether builders would be eligible for the ₹25 price reduction as the letter specifically mentioned common consumers.
Real estate developers and builders in Tamil Nadu have been have been locking heads over the rising cement price. Last week, the Tamil Nadu government called stakeholders in the industry for a meeting on reducing cement prices.
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