INSEE Cement prices up by Rs 30 per bag in view of the increasing cost of raw material and other production expenditure
View(s):INSEE Cement has increased its MRP (Maximum Retail Price) by Rs. 30 per bag. The retail price of a bag of cement will be Rs. 960 with immediate effect (as at Monday). The price of a ton of cement will be increased by Rs.600 for project customers.
These price increases have been approved by Consumer Affairs Authority (CAA) with effect from February 23 and will be adopted across INSEE Cement’s product portfolio. The local cement manufacturers and importers of cement had lodged applications for price increases due to increasing costs which the industry had absorbed over the past five years, the company said in a media release.
Jan Kunigk, Executive Vice President/Commercial Director of INSEE Cement, said that crude oil prices had doubled over the last two years to US$60 per barrel and the coal prices had increased by 30 per cent in 2017 alone. “Both these are essential inputs for manufacturing cement locally and import of cement. In addition to the increase of these cost, the country also increased wages by 10 per cent per annum over the last few years due to rising inflation and depreciation of the LKR (rupee) against US$ by a minimum of -3 per cent every year, all of which have a compounded impact on the company. Therefore, to remain competitive amidst these tough conditions, it was necessary to make this adjustment to partially compensate the cost increase,” he said.