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`Glut` sees price drop for cement
2008-05-05 09:31:43
By Felister Peter
The sub-wholesale and retail price of cement, which shot up sharply throughout Tanzania following a sudden fall in supply some ten months ago, has dropped appreciably.
Some sources attribute the change to the government directive to cement manufacturers to open more selling depots in different parts of the country.
Others say it is the decision by the government to allow in more imported cement that has worked the miracle, in part by making chronic shortages history.
Early this year the government registered and issued licences to several local companies to import 100,000 tonnes of cement to curb a sudden shortage that had triggered a price hike.
The price of a 50-kg bag stood at no more than 15,000/- only days earlier but it inexplicably rose to as high as 25,000/-, depending on how far one was from Dar es Salaam.
However, initially the government`s goodwill gesture did not work to plan because all that was finally in fact imported was a mere 2,700 tonnes.
It revoked the licences soon after the failed attempt and picked new traders, who have started importing cement - and hence, sources say, the current price fall.
Industry, Trade and Marketing deputy minister Cyril Chami confirmed in an exclusive interview with The Guardian yesterday that the government had ordered cement manufacturers to open more selling points to ensure that customers are served without undue inconvenience.
He said the scarcity and hikes in oil prices had made cement dealers charge higher for cement to minimise, in part to defray inflated transportation costs.
Chami explained that almost every cement factory has opened zonal depots throughout the country, adding that this had played ``a critical part in making cement prices register a noticeable drop``.
Alongside warning that the government would severely deal with anyone continuing to sell cement at a hiked price, he called upon Tanzanians to make sure that they buy cement at no more than 13,000/- per 50-kg bag.
A survey conducted by The Guardian at different places of Dar es Salaam over the last week showed that cement now sells at between 13,000/- and 14,000/- per 50-kg bag, just as obtained before the recent hikes.
The survey further showed that imported cement was selling at a generally lower price than locally produced brands.
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