Multimodal transport to facilitate the supply and prices of Indian cement
The Indian government is looking for ways to balance cement supply and demand across the country, while helping to reduce cement prices. Cement producers in southern India have spare capacity due to low demand, while in the north of the country demand remains high and cement is scarce. According to a government spokesman, a proposal is to transport the cement by sea from southern India to a port in eastern India, for example Haldia, from where it can be transported to cities such as Varanasi via inland waterways before being transported to its final destination by road. .
Indian Finance Minister Nirmala Sitharaman hopes improved cement availability through better logistics will also drive down the price, with the average price of cement across India increasing by INR 25-30/50 bag. kg ($0.32-0.38/50 kg bag), or 8.1%, in April this year alone, compared to the previous month. Prices have risen to INR 390/50kg bag over the past 12 months, with cement traders in some areas warning of a further rise of INR 10-20/50kg bag in May this year, reports BusinessLine Online. Although demand improved during 1HFY22, it has now slowed due to unseasonal rains, sand issues and labor shortages.
Published under Cement News