Chennai, Mar 20 (Agency) The South Indian Cement manufacturers’ Association (SICMA) today clarified that there was a mis-conception propagated by some interested quarters that Cement prices have risen abnormally and thus affecting the common man . “Nothing can be farther from the truth . The fact is that average cement price for current financial year is lower than that of last financial year” SICMA said in a statement here. Having said that no one seems to be concerned about the cement industry , specially in TN which is facing unprecedented crisis.
The main three input costs to produce cement are Fuel, power and transport . TN being totally deprived of domestic coal ( from Singreni or Western Coal fields ) is dependent on imported coal for both fuel and power . Ironically the cost of imported coal has gone up by 4-5 times in last few months alone . Thanks to the ongoing war it’s still going Northwards ,coal availability itself is becoming scarce. In other words , in calorific value terms what was sub Rs 1.5 per KCal has now shot up to Rs 3.5 per Kal. In addition the power cost has impacted cement production cost by Rs 175/- per mt. Bags which are made of HDPE granules is costing more by Rs 80/- per mt. Add to this the increase in transport cost ( due to net diesel price increase of Rs 13 a liter), the total cost increase is upwards of Rs 80 per bag .
This is before GST of 28% ( highest slab for a product meant for common man ) . Fact is that the very existence of cement industry in TN is under question , with no help coming from any quarter. As if that is not enough most cement companies have limited stocks of coal (not exceeding 15 day’s requirement). New coal consignments are not only costlier but also hard to get. Given the crisis , Government should find ways to help the industry. Least we expect is empathy instead of media writing reports on unfounded price increase bogey. Public at large need to understand that the crisis is far from over in near future. Ongoing war is not helping the cause either . One should worry about how to make the most responsible cement industry survive .