According to the industry sources, the cement releases into the local market has increased in December, 2000 to touch 6.02 lakh tonne, keeping in with the demand and supply and maintaining the price at about Rs 160 to Rs 170 per 50 kg bag. This is almost the same level recorded in June, 2000, added the sources. On Friday, the state chief minister N Chandrababu Naidu had expressed his displeasure over the malpractices of the state cement manufacturers in trying to push up the price. According to the informed sources, the chief minister had said to his ministers in a tele-conference that the state will import cement from the neighboring states, if prices do not come down to a realistic level.

Meanwhile, the Cement Manufacturers' Association met here on Saturday and discussed the recent developments. According to the industry sources, the prices have consolidated at the Rs 160 level throughout the state and it will slowly be reduced in the coming days. The association has proposed to meet the state industry minister K Vidyadhar Rao to apprise him of their version. Claiming the formation of cartel by cement manufacturers in the state, AP Builders Forum vice president C Sekhar Reddy accused the cement manufacturers for restricting supplies in order to increase the price.

Accordingly the prices have increased from the six-month back level Rs 75 to Rs 100 to the current level of Rs 165 to Rs 180 per bag, Mr Reddy said.