The average price of cement has gone up by nearly 50% in the last five years to INR 243 per 50 kg bag in 2009-10 buoyed by increased construction and real estate activities.
Quoting information provided by Cement Manufacturers' Association and two leading manufacturers, Mr Anand Sharma commerce minister informed the Lok Sabha that cement's average price was INR 163 per 50 kilogram bag in FY'06.
The price rise was the stiffest in 2006-07 as it became dearer by INR 43 per bag to stand at INR 206 but in 2009-10 it just went up by INR 5 a bag from INR 238 in 2008-09. During the 2007-08 fiscal, average price of cement was INR 238 a bag.
However, as cement is largely a regional product and the price of it depends upon the dynamics of demand-supply in that particular region, cement's price also varies from region to region.
This is evident from the fact that when a 50 kg bag of cement cost INR 234 in Bhopal in 2009-10, it was INR 262 in Guwahati, INR 252 in Chandigarh and INR 306 in Jammu.
India had produced 201.06 million tonnes of cement in 2009-10 and consumed 198.04 million tonnes during the year. Exports fell from INR 881 crore in 2008-09 to INR 665.73 crore in 2009-10.
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