The decision not to hike prices comes in the wake of the ongoing transporters' strike and the decision of the builders' lobby to boycott Grasim and Gujarat Ambuja for initiating the alleged cartelisation by the cement manufacturers.

Cement prices in Mumbai are currently around the Rs 190-Rs 195 mark in the retail market.

The Maharashtra chief minister, Vilasrao Deshmukh met both the representatives of the Cement Manufacturers Association (CMA) and the builders associations on Monday to solve the current imbroglio.

Industry sources pointed out that as a result of the ongoing strike, cement supplies were not being transported from the railyards and thus, the possibility of cement being confiscated by the railways remained a distinct possibility.

The efforts to break the deadlock are on with the manufacturers and transporters again meeting on Monday. The ongoing cement saga had taken a twist with the construction industry taking a decision to boycott cement purchases on an all India basis from two cement majors - Gujarat Ambuja and Grasim - with immediate effect.

Interestingly, other cement manufacturers, including ACC and Larsen & Toubro (L&T) have been spared. The decision was taken at a morcha organised by the Builders Association of India (BAI) and Maharashtra Chamber of Housing Industry (MHCI) on January 19 in Mumbai. The association had announced on January 15, that all civil works would be stopped in protest against the manner in which cement prices were hiked. But later the decision was revoked as it was not considered feasible to stop civil work. Grasim and Gujarat Ambuja account for over 25 per cent of the cement consumption in Mumbai, which is the largest market in India.