The action is seen as the new government’s initiative to tightening grip on the cement industry. The manufacturers had hikes cement prices last four months that coincided the change of guard, reportedly after forming a cartel.
The cement price in Chhattisgarh reached Rs 270 per bag, a hike of about Rs 23 after the UPA government came to power. The sluggish demand following infrastructure development projects coming to a halt was cited as one of the reasons for the increase. The manufacturers were planning further hike.
However, the state government pressure yielded results as cement price were slashed to Rs 247 per bag.