The decision to hike prices in the retail segment comes after the decision to effect a Rs 5 hike in the non-trade sales segment, mainly to bulk customers. The price increase in the non-trade segment, as reported earlier by The Financial Express, has been effected from Monday.

The decision to raise prices comes amidst the ongoing investigations by the MRTPC on the alleged cartelisation by the cement companies to artificially raise prices. The MRTPC has issued notices to all the major cement companies including Gujarat Ambuja, ACC and L&T on the price rise. Cement prices have held good in the retail segment, despite some price softening in the Gujarat and southern markets.

According to ACC president (marketing) AK Jain,"Cement dispatch figures for March are expected to be better, than that for February.This is primarily on account of meeting the government contract requirements and also to meet the requirements for the fiscal."

Mr Jain, however, did not comment on the proposed price rise issue. A Gujarat Ambuja official said that something on the price front was expected in the course of the week.

The price rise comes despite a lacklustre demand situation, which is an indication of the cement companies holding together on the price issue, according to an industry analyst. Moreover, the price rise comes at a juncture when the smaller companies like Jaypee Rewa and Koromondol Cement have been supplying cement to the Mumbai market at lower prices. Industry sources, however, pointed out that smaller players were acting more as "traders" and this would have no bearing on the market.