KARACHI, July 14: Cement prices of various brands hit a record peak of Rs355-395 after the budget as the same was available at Rs290-310 before. In May the price had been hovering around Rs240-270 per 50 kg bag.

Falcon cement at the retail side was available at Rs370-380 as compared to Rs350 last week. In April it was sold at Rs290. The Lucky cement price is tagged at Rs355-360 as compared to Rs330. In April Lucky cement was available at Rs275.

Even Javedan and State cement are available at Rs350 as compared to Rs290 in April.

Due to ineffective check on prices by the federal government and failure of the Competition Commission of Pakistan (CCP) to check cartelisation, the cement markers enjoyed a free hand pushing the rates up without any fear.

Currently, the construction activities in Karachi have been in full swing ahead of the monsoon season, which starts from third week of July.

A cement dealer said that the manufacturers were creating artificial shortage by supplying very low quantities in the local market and exporting huge quantities.

He said that it seemed that there was no authority or the government to check the monopoly of the manufacturers.

He said that the cement prices were supposed to rise by Rs10 per 50 kg bag after the imposition of federal excise duty and one per cent additional sales tax but the cement makers increased the prices of their free will.

The government has increased the FED to Rs900 per ton from Rs750 coupled with 16 per cent GST from 15 per cent.

On the other hand, the builders were still struggling to convince the government about withdrawal of budgetary measures regarding imposition of Rs100 per square yard on developed plots and Rs50 on constructed property.

However, consumers will be the real losers as the builders will pass on the additional cost to them.

A builder said that, besides budgetary measures, builders were highly worried over the rising cost of production in view of persistent increase in cement prices. Cement contributes 30 to 40 per cent of the total construction cost.

A leading cement manufacturer said that his company had increased the rate only to Rs325 per 50 kg bag from Rs300 after the budget with increase in FED, impact of gas tariff hike, coal price increase and rupee-dollar parity.

He said the dealers had been seen charging Rs380-395 for Falcon cement without any reason as its price at retail should range between Rs350-360 per 50 kg bag.

He added that even the paper bags price also surged to Rs16.60 per bag from Rs13.30 after the budget.

The manufacturer said that local sales during 2007-08 surged to only 22 million tons from 21 million tons in 2006-07. However, the industry exported seven million tons of cement to various countries as compared to 3.5 million tons in the year before.