Cement prices rise in Nepal

The price of cement in Hetauda, Bhairahawa and Biratnagar has risen by up to NPR160 (US$1.56)/bag, according to The Kathmandu Post. Cement producers claim this to be the result of the higher cost of raw materials such as clinker, gypsum and fly ash. However, some consumers have alleged that the price hike is artificial and cartelisation is to blame.

"Manufacturers collude with each other to hike prices while consumers regard recent price increases as a black market. We demand that this price hike, falsely attributed by manufacturers to increased prices of raw materials, be controlled," said Sunil Marasini, chairman of the Rupandehi Siddhartha Construction Materials Entrepreneurs Association.

The price of both OPC and PPC cement around Bhairahawa rose by NPR150/bag within a month, to NPR900 and NPR790, respectively.

Two major road construction projects in Biratnagar, representing a total investment of NPR7bn, are facing challenges due to the price causing a shortage of materials. Alongside the increased cost of raw materials, manufacturers claim that the ongoing disruption in transportation of clinker over the border from Raxaul has caused the price to rise.