Cement price hike sparks construction slowdown as contractors halt purchases

Kathmandu, December 9

Construction activities in Nepal have been impacted as private cement manufacturers increase prices through alleged cartelization.

President of the Federation of Contractors’ Associations of Nepal (FCAN), Ravi Singh, stated that contractors are unable to purchase cement at the inflated rates. “On one hand, contractors have not been paid for completed projects, and on the other, rising cement prices have pushed many to consider halting construction altogether,” Singh remarked.

He accused cement manufacturers of deliberately reducing production to create an artificial shortage, claiming that the industry has collectively cut production by up to 40 per cent. “This is simply a tactic to manufacture scarcity and exploit the situation,” Singh added.

Many contractors have already stopped purchasing cement at the new prices.

Meanwhile, cement manufacturers have defended the price adjustment, arguing that it corrects past practices of selling below production costs due to unhealthy competition.

According to contractors, the price of cement now ranges from Rs 710 to Rs 795 per sack, a sharp rise from the previous Rs 500 to Rs 600 range. Prices for PPC (Pozzolana Portland Cement) and OPC (Ordinary Portland Cement) vary.

The Department of Commerce, Supplies, and Consumer Protection has also expressed concern over the price hike, especially as the government intensifies capital expenditure. On Sunday, the department held discussions with cement producers and requested a detailed pricing list. Director General Rajan Paudel informed that the producers have been given a seven-day deadline to justify the price increase and submit their price lists.

The post Cement price hike sparks construction slowdown as contractors halt purchases appeared first on OnlineKhabar English News.