New Delhi, Jan 17: In a rearguard action against increasing criticism of the sharp rise in cement prices, cement manufacturers have appointed Crisil to determine optimum prices for the economic viability of the industry.The industry has also approached ICICI for undertaking a similar exercise. The initiative has been taken through the industry's parent body - the Cement Manufacturers Association (CMA).
Though industry sources admit that supplies are being regulated with despatches being made only to the extent to which the markets can absorb them, they claim that there was no other alternative left with cement companies to keep themselves afloat. Cement manufacturers claim that units would have started closing if prices had not been raised. They also support their argument with a report prepared by ICICI a few years ago which put the optimum price of cement in November 2000 in the range of Rs 177 to Rs 202 in New Delhi, Rs 177 to Rs 196 in Mumbai, Rs 171 to Rs 189 in Chennai and Rs 169 to Rs 178 in Hyderabad.
Sources said that cement prices in October 2000 were much lower than the prices in October 1999. Prices crashed last year despite an increase in input costs. "Till October-November, cement manufacturers were selling in the market at extremely low prices because they were getting money,"
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