CHENNAI: Denying reports that the cement price has gone up in Tamil Nadu by 33 percent, Industries Minister Thangam Thennarasu on Saturday said the state government is taking steps to bring it down.
"The state government has been monitoring the cement price and is now taking steps to reduce the overall increase in the price per bag, which is only Rs 20. Also, the Valimai brand of the Tamil Nadu Cements Corporation Limited (TANCEM) to be introduced within a week or two will bring down the price further," the minister said in a statement here.
"In the first phase, 30,000 metric tonnes of Valimai brand cement will be sold in the open market. Already, TANCEM has been selling 90,000 metric tonnes of its Arasu brand of cement in the open market," the minister pointed out.
Thennarasu recalled that the price of cement produced by private companies ranged from Rs 420-450 in March. This had gone up to Rs 470-490 in June. Following this, he held talks with private cement producers on June 14 highlighting the hardships faced by the people as well as the construction industry. Due to further steps taken by the government, the cement was sold at prices ranging from Rs 420-450.
"At this juncture, due to shortage of coal, increase in the cost of importing coal and transportation charges, the cement price had gone up to Rs 470-490 from October 6. Following the intervention of the state government, the price had come down to Rs 440-450. So, compared to the price in March, now the price has gone up to Rs 440 - i.e. only a 4.7 percent increase and not 33 percent as being claimed," the minister added.
Considering the increase in the prices of cement manufactured by private companies, TANCEM had increased its sales this year, the minister said. "During the period between March to September, TANCEM has sold 7,68,233 metric tonnes of cement this year. During the same period last year, only 3,66,677 metric tonnes of cement were sold by TANCEM. At present, the price of TANCEM cement ranges between Rs 350-360 - i.e. around Rs 90 less than the price of the cement of private players. Also, steps are being taken to further increase the sale by TANCEM," the minister added.
Meanwhile, AIADMK joint coordinator Edappadi K Palaniswami, in a statement here, charged that the prices of construction materials including cement, M Sand, blue metal, bricks, gravel, wood, etc have gone up steeply compared to the rates prevailing during the previous AIADMK government. This has affected the employment opportunities of construction workers, he said.
Palaniswami said in no other state in the country has the cement price seen such a steep increase. The prices of cement in other states are Delhi (Rs 350), Andhra Pradesh (Rs 370), Telangana (Rs 360) and Karnataka (Rs 380). But in Tamil Nadu alone, the price of cement has gone up to Rs 480 and the price in other states was 30 percent less, he said.
Palaniswami said the DMK government, as promised before the elections, should bring construction materials under the list of essential commodities and make them available at a fair price.