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MUMBAI (Reuters) - Cement prices in western and northern India have been raised by 12 rupees per 50 kilogram bag from March 1, a trade body official said on Thursday.
"Cement prices are up from today," Sanjay Ladiwala, president, Cement Stockists & Dealers Association Bombay, told Reuters.
Finance Minister P. Chidambaram raised the excise duty on cement priced above 190 rupees per 50 kilogram to 600 rupees per tonne from 400 rupees in the federal budget for 2007/08. He also cut the duty on cheaper cement bags to 350 rupees.
Ladiwala said the average wholesale price of cement in Mumbai, after the increase, would be 233 rupees per 50 kg bag and the retail price 245 rupees.
"There would be plus or minus 5 rupees per bag difference depending on the brand," he added.
Cement shares such as ACC Ltd., Gujarat Ambuja Cements Ltd., India Cements Ltd., UltraTech Cement Ltd. were down 1.2-6.3 percent.
Industry experts had said on Wednesday that cement prices were more than 190 rupees per bag in most parts of the country and the added duty burden would be passed on to customers.