Nepal Cement Manufacturers Association to review price hike

The Nepal Cement Manufacturers Association has agreed to review the recent hike in domestic cement prices, The Kathmandu Post reports.

Earlier last week Industry Minister Nagendra Raj Joshi had requested that cement manufacturers review the recent hike which has seen prices increase by NPR20-25/bag. In a follow-up meeting called by Joshi on Sunday, the manufacturers said they are committed to lowering the price.

During the meeting, Dhurba Thapa, President of Nepal Cement Manufacturers Association, said the association had agreed to inform members and will call on them to review cement prices to honour the request made by the government, according to a statement released by the Industry Ministry.

Thapa had stated that the price increased followed an increase in raw material and shipping costs. Last year, on average, the price of cement had risen by NPR100/bag. While power related issues have been reduced with Nepal Electricity Authority (NEA) ensuring smooth supply of electricity in recent days, the rise in the cost of clinker and coal has been a major contributing factor in the rise of cement prices. Domestic cement manufacturers are dependent on clinker imported from India and coal imported from Indonesia and South Africa.