New Delhi, May 3: Stung by the rising prices of zinc, domestic dry cell manufacturers are considering a hike in the prices of the finished product.

“As the price of zinc is at a record high, we will continue to increase the prices to offset the adverse cost impacts,” said Deepak Khaitan, executive vice-chairman and managing director of Eveready Industries India Ltd.

The cost of zinc, which constitutes more than 50 per cent of the average material cost of a dry cell battery produced in India, has risen by over 138 per cent in the past one year. Manufacturers are seeking duty cuts to scale down the cost of the raw material.

The Association of Indian Dry Cell Manufacturers (AIDCM) said the zinc price on the London Metal Exchange has increased from $1,300 per tonne in April 2005 to $3,100 per tonne in April 2006.

Major manufacturers, who have already raised prices several times last fiscal, are hiking the prices further to offset this unprecedented increase, the association said.

“The industry has always tried to control the prices of battery keeping in mind rural consumers, as 60 per cent of battery consumption is in villages. Dry batteries are alternative and portable sources of energy for lighting, entertainment, safety and security,” said S.R. Jiwarajka, president of AIDCM.

Jiwarajka said dry cell manufacturers procure zinc both locally and internationally and domestic suppliers are pricing the metal at the prevailing LME prices. The zinc prices factor in the ocean freight, customs duties and other charges.