ACC warns of cement price hike on rising costs

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The country’s largest cement manufacturer by capacity, ACC Ltd, said on Tuesday that it could increase prices once the three-month voluntary freeze by the industry expires. According to managing director Sumit Banerjee, the industry, and ACC in particular, faces mounting pressure on margins owing to spiralling input costs.

“Given the current inflation trend, we froze prices for the next three months, which is the peak season for cement consumption. Three months later, we will assess market conditions and might increase prices,” Banerjee told newspersons at a select briefing.

Finance minister P Chidambaram has told cement companies they were behaving like a cartel. The MRTPC is examining the cartel aspect.

Banerjee offered the alternative of holding prices if the government rolled back the hike in excise duty announced in the Budget. The government had hiked the excise duty from specific to value-based for cement priced above Rs 250/50 kg.