While the real estate industry bodies, both CREDAI and NAREDCO, have approached the Competition Commission of India (CCI) alleging cement cartels hoarding to inflate prices, a CRISIL report says India’s cement demand has grown at a slow pace of 3% during April- October 2011, largely due to the subdued pace of construction activity in the real estate and infrastructure.
Meanwhile, the average all India retail price of cement has increased by 6% month-on-month basis to Rs 280 per bag in October 2011.
“Post the festive season, construction activity and consequently cement demand will gain traction, which could lead prices to rise by 1-2%, on a month on month basis, in November 2011,”said Ajay D’Souza, Head, CRISIL Research.
On a yearly basis, the average pan-India retail cement price recorded an increase of almost 15% during the month.
