Date:25/02/2006 URL: http://www.thehindubusinessline.com/2006/02/25/stories/2006022503560800.htm

Back Reclassification: No impact yet

Our Bureau

Mumbai , Feb. 24

The Railway Budget which left freight rates untouched, will make little difference to the cement industry, but there is a likelihood that the reclassification of commodities for freight could move cement to a higher or lower slab rate, said officials with cement manufacturers.

The reclassified schedule is issued later, said a spokesperson for ACC. On an earlier occasion reclassification moved cement to a different rate-slab, he said. The Budget mentioned the reduction of freight commodity slabs to 28 from 80.

The fine print will have to be read, he said.

However rising road freight rates have led to an increase in cement prices. The decision of the Supreme Court to allow only nine tonnes to be carried at a time has led to both freight cost increase as well as a supply deficiency.

Retail prices have increased by between 15 per cent and 20 per cent since, said Mr Sanjay Ladiwala, President, Cement Stockists & Dealers Association of Mumbai.