Construction work at many sites came to a standstill due to incessant rains in the region for the past few weeks thereby impacting the demand of cement and steel and eventually bringing down the prices of these commodities.

The price of a 50-kg cement bag of a reputed brand in the State, that was trading at a level of Rs 370-380 in May-June, has now dropped to Rs 350-360 in the retail trade category while the price of similar bag in bulk buy category slipped to a level of Rs 300-310 from its peak of Rs 350-360 during the same period. The prices include 28 per cent GST applicable on cement.

Besides, a huge disparity in prices of cement sold in the Vidarbha region and Chhattisgarh is further diluting its price here. One of the cement dealers, who wished not to reveal his identity, said that there is a difference of about Rs 50 per bag in the prices in these two areas. “In Chhattisgarh, cement is available at a cheaper price and thus a large number of consumers are buying it from there. Even after paying the transportation charge of about Rs 25-40 per bag, it is profitable to buy cement from Chhattisgarh,” he said.

Another dealer said cement prices of all the top brands are hovering around these levels. “There are five to six brands whose prices are more or less the same. These brands call themselves ‘A’ category manufactures. In addition to this, there are other brands which offer cement at about Rs 15-20 per bag less price,” he added.

Market sources said that the cement prices fall as the commodity is not in demand especially during the rainy season. There is non availability of labourers in the region in the rainy season and the pace of construction activities becomes very slow.

During monsoon season, many outstation labourers return back to their respective villages to engage in agricultural activities. Due to this, work at the projects gets hampered and demand for cement and steel comes down. The low prices of cement are expected to maintain these levels for next few weeks. But as soon as the monsoon season ends, the cement prices are likely to go up. Apart from cement, steel prices have also come down from its recent peak.