BASSETERRE, St. Kitts – THE drop in demand for cement has caused a reduction in the commodity’s Cost, Insurance and Freight (CIF) and, with immediate effect, consumers will benefit from the lower price of the product.
In an announcement made yesterday (June 10), Minister of Finance, International Trade, Industry, Commerce and Consumer Affairs Dr. the Hon. Timothy Harris indicated that the price of the 94-pound bag of cement would experience a “significant reduction” of EC$2.17. This would reduce the current retail price from EC$25.47 to EC$23.30, effective immediately.
This reduction comes as good news for contractors and businesses within the construction industry, especially now that the thriving sector has been identified as one of the areas which may be adversely affected by the global economic crisis.
Harris explained that Cabinet made a decision to lower the price on Monday (June 8) after recognising that prices for cement inputs had fallen significantly. He said the price reduction should encourage increased activity within that sector.
“Some of the input in cement has fallen, so we are passing this reduction on to the benefit of customers. Given this significant price savings in cement, we hope that this will give a well-needed boost to the construction activity in the country and reduce the overall building costs,” Harris stated.
Consumers can anticipate similar price reduction in a number of commodities over the next six months as CIF figures are descending as a result of a fall in demand.
Harris explained, “It is expected during the course of 2009 that cost of living should attenuate. We have seen some reductions in the price of oil although it is increasing again. But these things take time to permeate through the economy. As a result of the recession, demand for certain products will be reduced so prices will go down and we have seen benefits from reduction of CIF cost.”
Minister Harris thanked the main cement distributors, St. Kitts-Nevis-Anguilla Trade and Development Company Ltd. (TDC) and SL Horsfords’, for their cooperation and “speedy action” in this matter and said that such a reduction in the price of cement should also lead to a lowering in the price of ready-mix concrete.
According to Harris, further reductions in other products are being contemplated.
