Cement to become dearer in Nepal

(Nepal)  —  The price of cement in Nepal has risen by an average of Rs 30 to Rs 40 per 50-kg sack. The increase in cement prices can be attributed to an increase in the price of petroleum products, clinker, and increased hours of load-shedding.

Price of cement in Nepal is dependent on the price of clinker imported from India. Nepal imports cement and clinker from India.

Annual demand of cement in Nepali market is around 3 million metric tons.
“Currently, most companies have not increased the price as the demand of cement is very low but they are all set to increase the price sooner than later,” said Dhurba Thapa, Vice-President of Cement Producers Association (CPA) and proprietor of Tej Cement.

The demand of cement in Nepal usually increases from mid-February, as the construction activities start during this month.

However, certain companies have already increased the cement price citing difficulties in meeting the production costs.

“As the price of clinker has increased in the Indian market, and this coupled with an increase in the price of petroleum products and prolonged hours of power cuts, the production cost has increased by almost 15 percent due to which the companies are forced to raise the prices,” said  Aatma Ram Murarka, president of CPA and proprietor of Shaktiman Cement.

“We have now increased the price only by Rs 25 per 50-kg sack not to create more burdens for the customers but the price will further go up within a few months,” informed Bom, proprietor of Ambe Cement.

Earlier, manufactures increased the price of cement in November by Rs 50 to Rs 60 per sack, citing an increase in the price of raw materials and high transportation costs.

By: Rashmi Kalia (ARI-C NEWS)

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