Cement makers have indicated that they will have to raise prices as it is not possible for them to absorb the increased freight charges on account of hike in diesel price.
“The increased freight is not going to impact only the distribution of finished goods.
Generally, it takes two tonnes of inputs to produce one tonne of cement. So, the impact will be on a total of three million tonnes freight. I don’t think the industry is now in a position to absorb this,” JK Lakshmi Cement Whole-time Director Shailendra Chouksey said.
Following the Rs 5.62 a litre hike in the price of diesel last evening, apex truckers’ body All India Motor Transport Congress (AIMTC) effected a 15 per cent increase in the freight charges across the country. AIMTC claims to have around 80 lakh trucks under its fold.
Commenting on the impact of the hike in diesel prices, a major cement producer, which preferred not to be quoted, said the hike was indeed a stiff one and this would certainly push the distribution cost for cement makers, which could not be absorbed.
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