Cement production expected to touch 197 million tonnes by 08-09

New Delhi, Dec 13 (UNI) The cement production in the country is expected to touch 197 million tonnes in 2008-09 as against 148 tonnes in 2005-06 and the prices have stabilised around 205 per bag in October 2006.

Answering questions of Mr R M Majitha and Mr Ram Jethmalani, Minister of State for Commerce and Industry, Ashwin Kumar in a written reply said that the cement production had increased gradually from 123 tonnes in 2003-04 to 133.57 tonnes in 2004-05.

The average cement prices which was at Rs 157 had stabilised since May 2006.

To a queston of Mr B K Hari Prasad, the minister said cement was a decontrolled commodity and its prices were governed by economic factors like demand, supply, cost of raw materials, fuel and other inputs, production and distribution costs.

Asked if the Cement Manufacturers Association had committed to a final retail price of Rs 147 per bag to the consumer in April 2006, the minister replied in the negative and said they were giving a discount of five per cent on the prevailing prices for the Central Government Deparments. They had promised to increase the production to ensure against profiteering by retailers.

On the issue of iron ore production in the country, minister of State for Commerce Mr Jairam Ramesh said ore production in the country was surplus to the domestic demand and was exported through ports closer to centres of production depending on the infrastructure.

China was the biggest importer of iron in the country with 74 million tonnes out total export of 89 million tonnes. Japan, South Korea, Taiwan, were the ore importing countries and Asia and Europe countries accounted for a mere 2.1 million tonnes, he said.

UNI MCN CS RK1425