Its disclaimer comes at a time when Tamil Maanila Congress (TMC) is in themidst of a campaign against its erstwhile ally and the ruling party DMK fornot taking steps to keep the cement prices low in Tamil Nadu. TMC hasaccused the manufacturers in the state of manipulating the cement price andkeeping it at a higher level compared to neighbouring states.

The party, on Friday, in fact symbolically sold cement at Rs 125 per bag andwarned that more cement would be made available at that price if cementprices are not brought down by January 15. Senior TMC leader Peter Alphonsemade the first sale but did not answer questions by the media as to whetherTMC had the necessary approvals, sales tax registration etc to effect such asale.

The party also accused the state government of not giving permission to acement manufacturer in Gujarat who had wanted to supply cement at Rs 90 perbag.

The state government has said cement was not a controlled commodity and thatit can do nothing in a free market economy. Reacting to TMC's comparison oncement prices in other states, Chief Minister M Karunanidhi had remarkedthat there was no bar in cement from other states coming into Tamil Nadu.The symbolic sale by TMC was basically to prove a point to the stategovernment.

Market has been ripe with rumours that Gujarat Ambuja was willing to sell inTamil nadu at a price lower than the prevailing market price. The companyhas a presence in neighbouring Kerala where it supplies by bringing inbagged cement by ships. Its plan to set up a bagging plant at Tuticorin inTamil Nadu is yet to take shape.

Though TMC has been claiming that cement price in Tamil Nadu was around Rs200 per bag, the retail prices in Chennai is currently hovering at around Rs150 to Rs 140 per bag depending on the type of cement.