Telangana : Cement prices set to rise from September 5
Telangana : Cement prices in Telangana and Andhra Pradesh are set to rise from September 5, adding to construction costs for homebuyers and the real estate sector.
Cement manufacturers are preparing to increase wholesale prices as production and transportation costs have risen, according to market dealer sources. Companies are planning to raise prices by around ₹30 to ₹40 per 50kg bag, they said.
If implemented, the increase could push wholesale cement prices in the two states up by nearly 10%.
Brand-wise increase likely to vary across categories
Prices of A-category brands are currently around ₹285 per 50kg bag. A ₹30 increase would take the price to about ₹315, a rise of around 10.5%.
B-category brands currently cost about ₹250 a bag and could rise by ₹25 to around ₹275.
Although companies are considering increases of ₹30 to ₹40 a bag, the actual hike is likely to vary depending on the brand and category, dealers said.
Higher input, packaging and freight costs drive hike
In August, cement companies in Tamil Nadu, Kerala and Karnataka raised prices by only ₹10 a bag. Prices currently range between ₹310 and ₹315 in Tamil Nadu, around ₹320 in Kerala and ₹320 to ₹330 in Karnataka.
The proposed ₹30 to ₹40 increase in Andhra Pradesh and Telangana would therefore be the highest among southern states, according to the report.
Higher raw material, packaging and freight costs are the main reasons cited for the proposed increase. Across India, cement prices rose by an average of only ₹15 a bag in the June quarter.
Market analysts said companies may need to raise prices by ₹35 to ₹40 a bag to offset the current cost pressures.
A Hyderabad-based cement distributor said companies were also considering the upcoming festive season and the expected rise in demand while adjusting prices.
While the timing could help cement companies offset higher costs, the increase is likely to directly raise construction expenses for consumers.
