Slash prices, govt to firms on Cement crisis

Amaravati: The Group of Ministers (GoM) led by finance minister Yanamala Ramakrishnudu expressed serious concern over the exorbitant price hike of cement in the recent days, which has been affecting the common man and asked the cement companies to come out with a way to slash down the prices.The GoM consisting of ministers K Atchannaidu, Kamineni Srinivas, N Amaranatha Reddy and P Narayana and headed by Y Ramakrishnudu held discussions with the representatives of cement companies at the Secretariat on Monday.

GoM led by finance minister Yanamala asks the companies to announce their decision at its next meeting scheduled to be held on April 27

The representatives of cement companies argued that due to the price hike of raw materials, transporters strike and taxation policy there was a slight price hike which did not cause any burden to the common man.They said it is not possible for them to reduce the cement prices as the production cost will not allow them to do so. At this point, minister Kamineni Srinivas warned them that if they didn’t reduce the prices the government will approach the Centre for getting permission to import cement.

Another minister K Atchannaidu pointed out that there is lot of variation in the price structure from one district to another district. While presenting the situation in Srikakulam district, he said the cement bag which was sold for Rs 310 on November 23 last year has gone up to Rs 390 on April 23. And the cement which costs Rs 340 per bag in Kadapa is being sold at Rs 390 in Srikakulam, which is completely irrational, he said.

He said that cement which was sold at Rs 290 per bag in December 2015 has gone up by Rs 100, which has become a burden to the common man in realising his dream of own house. The representatives of cement companies have also acknowledged the argument of the ministers and said that the price variation should not be more than Rs 5-10 between districts. The transport charges will be more to Srikakulam district compared to Kadapa, but the price variation will not be more than Rs 10 per bag, they said. The dealers should sell cement as per MRP printed on the bag, they said.

Later, Finance minister Y Ramakrishnudu has asked the representatives of cement companies to come out with a decision on reducing the prices of cement for which the latter sought two days time.The minister said there should be uniformity in the price structure across the state. “We will undertake a survey immediately through our Call Centre on the cement prices across the state. We will check whether the dealers are selling the cement at abnormal prices more than MRP. Why there is a variation in prices from one company to another when the input cost is one and same.

Transport cost may be more but not the production cost. We will directly deal with the cement dealers if they deceit the people. The government strongly feels that the soaring prices of cement should come down. We are giving incentives to the cement companies and they should also reciprocate while slashing down the prices of cement,” he said.The representatives of cement companies should come out with a decision on reducing the prices of cement and announce it at the next meeting of the GoM scheduled to be held on April 27, Ramakrishnudu said.