According to industry sources, at least 12 of the leading 16 players in the cement market in Andhra Pradesh have reached an understanding to "orchestrate", prices by at least Rs 10 to Rs 15 per bag of 50 kg during the remaining part of the current season which does not have many more days to go before the rains set in in full force.

Though the cement prices have touched Rs 110 per bag, up from Rs 95 nearly two months back, the industry circles point out prices during the same period last year were higher at between Rs 130 to 140 per bag despite dumping by two of the leading players.

Interestingly, hectic pre-election buying by the state government has failed to pep up the market despite the spate of construction acitivities taken up by the N Chandrababu Naidu administration which has increased consumptionto seven lakh tonnes for the period.

The leading players in the industry are understood to have met on Monday and took stock of the situation and decided to limit supplies to 50,000 tonnes per month in the local market.

Andhra Pradseh has about 16 major cement plants and 20 mini-cement plants operating in full capacity. If the companies strictly follow their plan, it would successfully increase the price to the level of last year.

Over above the government spending on construction activity, the private construction is estimated to increase atleast by 20 per cent over preavious year.