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India cement prices to rise up to 15%

Indian cement manufacturers have decided to hike prices by up to Rs 20 per bag, or 15 per cent, a cement industry source said on Wednesday.

"Cement prices will rise by between Rs 5 and Rs 20," the source said, speaking on condition of anonymity.

Officials from top cement makers Grasim and Larsen & Toubro were unavailable for comment while the spokesman of Associated Cement Companies declined comment.

"The hike will take prices back to their December levels," the source said.

He said the price of a 50 kg bag of cement would range from Rs 165 to Rs 180 in Bombay, the country's biggest market and would be the biggest hike made by the producers in the last six months.

"The percentage of the price hikes will be highest for low end brands, while prices of premium brands will rise by Rs 5-7," he said.

A financial daily said that the decision to hike prices across the country had been taken by cement manufacturers at an industry body meeting on Tuesday.

"There is a desire to reverse price cuts that have happened in the last three to four months," a producer said.

"We think the market will take the higher prices as there are often supply disruptions and shortages in the monsoon season," he added.

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