LAHORE, April 25: The cement manufacturers on Tuesday reduced their ex-factory prices by Rs5 per bag in view of the continuous drop in the sales, dealers said.

With the latest reduction in the ex-factory prices, the consumer rate of cement fell to Rs330 per bag in the provincial metropolis, the dealers said.

They said the dealers and retailers were forced to sell cement to consumers at the ex-factory rates foregoing their own profit because of the drastic drop in the sales over the last few days.

A senior executive of a cement manufacturing company corroborated the contention of the dealers, saying the cement sales had come to a virtual halt on the prospects of a substantial reduction in the commodity’s prices once it was actually imported.

The government has taken several steps to increase the supply of cement in the local market in order to meet the increasing demand, which is said to be the main factor responsible for the rising prices. Besides, banning cement exports till further notice, the federal cabinet’s Economic Coordination Committee (ECC) had allowed a subsidy of Rs60 per bag on the duty free import of cement from any country including India.

The CBR had, however, not notified the subsidy allowed to cement importers till the filing of this report.