- Cement makers plan to raise wholesale prices by Rs 30-40 per bag in Andhra Pradesh and Telangana
- The price increase could be about 10% for A and B-category cement from Sept 5
- This hike is sharper than recent Rs 10 per bag rises in other South Indian states
Cement manufacturers are looking to raise wholesale prices in Andhra Pradesh and Telangana by Rs 30-40 per 50-kg bag from Sept. 5, according to dealer inputs.
The proposed increase comes amid elevated input costs and ahead of the festive season, when cement demand is expected to improve.
Cement prices may rise 10%
The proposed hike could translate into an increase of around 10% in wholesale cement prices in the two states.
A-category cement, currently priced at around Rs285 per 50-kg bag, is expected to rise to Rs 315, an increase of Rs 30 or about 10.5%.
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B-category cement, currently available at around Rs 250 per bag, could increase to Rs 275, marking a 10% rise.
While companies are looking at a broader Rs 30-40 per bag increase, dealer inputs suggest the actual increase could vary across brands and categories.
Sharpest hike in South India so far
The proposed increase in Andhra Pradesh and Telangana comes after cement makers raised prices by around Rs 10 per bag in Tamil Nadu, Kerala and Karnataka in August, as reported earlier by NDTV Profit.
Cement prices in these markets are currently around Rs 310-315 per bag in Tamil Nadu, Rs 320 in Kerala and Rs 320-330 in Karnataka.
If implemented, the proposed Rs 30-40 hike in AP and Telangana would be significantly higher than the recent increases seen across other southern markets.
Why are cement companies raising prices?
The latest price move comes amid pressure from higher packaging and freight costs, which have weighed on cement makers' input costs.
The industry had already implemented a relatively modest price increase in Q1, with cement prices rising by around Rs 15 per 50-kg bag on average.
Regional increases in Q1 were higher in East India at approximately Rs 27 per bag, while prices in the West, North and South rose by around Rs 13-15 per bag. Central India saw an increase of around Rs 7-9 per bag.
Analysts see further room for price hikes
According to analyst estimates, cement companies need a price increase of around Rs 35-40 per 50-kg bag to offset the impact of higher input costs.
The impact of elevated costs is expected to spill over into Q1 and Q2, making further price increases a key factor to watch for cement companies.
One of the dealers Deepak Navandar of TRIMURTHI Cement Distributors in Hyderabad said the proposed hike in AP and Telangana is also being pushed ahead of festive-season demand, which could provide companies with a window to implement higher prices.
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