The price of a 50-kg bag of cement may go up by as much as Rs 9 this month as the newcoal pricing mechanism adopted by Coal India has increased the production cost for makers of the building material.
“Cement players will try to pass on the cost increase resulting from the new pricing policy adopted by Coal India w.e.f. January 1, 2012. Markets expect Indian cement price likely to rise by 2-3 per cent in January, 2012.
Deviating from its earlier practice, CIL started pricing coal on the basis of gross calorific value — the energy produced by burning it — with effect from January this year. Earlier, the price of coal was fixed on the basis of the moisture and ash content present in coal.
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