Cement dealers hike prices across India in December

Cement dealers across the country have hiked prices since the start of December after four to five months of flat prices that has reduced dealer margins and affected the profits of cement companies.

Dealers have said that the hikes are because of the increased demand from the real estate sector, which is driven by better labour availability post-festive season, and an increase in orders from the infrastructure sector.

Cement price Hikes

Cement prices are the highest in Western India. Here, dealers have raised the amount by around Rs 5-10 per 50 kg bag. In rest of India, particularly in the southern and eastern regions, the price hikes have been larger. However, prices in these regions remain lower compared to western and northern India.


New cement prices in western India stands at Rs 350-400 per 50 kg bag, according to dealers, and listings on various B2B platforms.


Cement dealers in Delhi have said that prices on all brands have been increased by Rs 20 per bag, with new prices ranging between Rs 340-395 per bag, depending on the quality and the brand.

In southern India, where cement prices are the lowest, dealers increased prices on most brands by up to Rs 40 per bag, according to a large cement distributor in Chennai, taking prices to around Rs 320 per 50 kg bag of cement.

Eastern India reported increase in price after several months. Post-festive pace in infrastructural development and real estate constructions in a few states has prompted to dealers to rise prices by up to Rs 30 per bag.

The prices for December will be hiked by around Rs 10-15 per bag across all regions, said an Incred Equities report. In its channel check report, InCred said dealers feel that prices have "bottomed out", and small price hikes is the way to go forward as government capital expenditure improves in the second half of FY25 after election and monsoon-related disruptions.


However, the report said that severe price hike would be difficult to implement despite the increase in demand because of new capacities coming in. Additionally, large cement players may prefer to increase volumes and market share, and may keep away from price actions, the report said.

Moreover, analysts said that full absorption of the price hikes is still not happening, as attempted price hikes in September by cement makers and dealers were unsuccessful. However, the end of the election season and the rise in government expenditure may be signs of price support.