Re-bar prices in Indore have fallen by almost INR 1,000/MT owing to entry tax cut from 5% to 2% in last one week.
The entry tax cut in Madhya Pradesh (M.P) proving benefit to the neighboring steel markets like Jalna (Maharashtra) & Raipur (C.G). Domestic manufacturers of M.P are bound to decrease the prices in order to maintain the same price level from the outsiders.
Major Impact after Entry Tax Cut
- Domestic prices continue to decrease
- Demand increases from the neighboring states
- Price competitive
- Benefit to end-user
Re-bar (12 mm) Price Comparison of Raipur & Jalna to Indore
|
Particular |
Raipur to Indore |
Jalna to Indore |
Indore |
|
Basic |
35,300 |
36,100 |
38,500 |
|
Excise Duty |
4,363 |
4,462 |
4,759 |
|
Loading |
200 |
200 |
200 |
|
CST@2%, VAT@5% |
793 |
811 |
2,173 |
|
Freight |
1,700 |
1,300 |
– |
|
Entry tax@2% |
847 |
857 |
– |
|
FOR Price including CST |
43,203 |
43,731 |
– |
|
Indore Price |
45,632 |
45,632 |
45,632 |
|
Price Difference |
2,428 |
1,901 |
– |
Basic price is considered for local Re-bar
Prices for reference only
Prices as on 4 Jul, 2014
According to one of the Indore based manufacturers, “ Prices are likely to be down in the domestic market in near future to keep them competitive. The major supply of finished products to Indore comes from the Jalna market owing to short distance from Raipur; however Raipur mainly covers Bhopal, Jabalpur & Gwalior market”.
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