In the first week of the new year, major cement companies have increased prices by Rs 5 per bag in Himachal Pradesh, delivering an inflation shock to consumers. The new rates came into effect from Tuesday. Steel reinforcement bars (TMT) have also become costlier, with prices jumping by approximately Rs 500 per quintal in just one week.
Cement price hike across brands
All major cement brands operating in Himachal Pradesh have implemented the price increase:
| Product | Old Price | New Price | Increase |
|---|---|---|---|
| ACC Suraksha Cement | Rs 390/bag | Rs 395/bag | Rs 5 |
| ACC Gold Cement | Rs 435/bag | Rs 440/bag | Rs 5 |
| Ambuja Cement | Rs 400/bag | Rs 405/bag | Rs 5 |
| Ultratech Cement | Rs 395/bag | Rs 400/bag | Rs 5 |
| TMT Steel Bars | Rs 5,500/quintal | Rs 6,000/quintal | Rs 500 |
Steel prices surge too
Adding to construction cost burden, steel reinforcement bars (sariya/TMT bars) have witnessed a sharp jump of Rs 500 per quintal within one week. Steel rods that were available at Rs 5,500 per quintal are now being sold at Rs 6,000 per quintal.
Dealers confirm immediate implementation
ACC cement dealer Pawan Kumar confirmed that the company has communicated the price increase and new rates have been implemented with immediate effect. He stated that companies are being forced to raise prices due to continuously rising production costs and transportation expenses.
Ambuja Cement dealer Rohit Kumar said the price hike by the company is having a direct impact on the market, and customers are also confused about the increased prices. Dealer Rakesh informed that Ultratech Cement’s new rate has now reached around Rs 400 per bag.
Impact on construction and disaster recovery
The price increase comes at a particularly difficult time for Himachal Pradesh, which is still recovering from the devastating 2023 monsoon disasters. Thousands of families whose homes were damaged or destroyed are attempting to rebuild using their own resources, and the cement price hike directly affects their reconstruction efforts.
For construction projects, both residential and commercial, the combined increase in cement and steel prices will significantly raise overall costs. A typical house construction requiring 400 bags of cement will now cost Rs 2,000 more just for cement, while steel requirements will push costs even higher.
Former Chief Minister and Leader of Opposition Jayram Thakur strongly criticized the state government over the price increase, calling it “inhumane treatment of disaster-affected people.”
“The state is in the grip of disaster. Thousands of people have become homeless, and even more have had their cattle sheds and houses partially damaged. On one hand, the government is not helping people, and on the other hand, by increasing cement prices, it is creating difficulties for those who are rebuilding their homes on their own,” Thakur stated.
He added that repeatedly increasing cement prices at such a time amounts to cruelty toward disaster-affected people. “What’s surprising is that cement companies have already given ultimatums to their dealers about further price increases ahead,” he warned.
Thakur accused the Congress government’s decisions of increasing public hardship even during the serious disaster situation. “People in disaster-affected areas of the state are struggling to reconstruct their broken homes, while the government keeps increasing cement prices, adding to their difficulties,” he said.
Thakur’s reference is to the central government’s decision to reduce GST on cement from 28% to 18%, which was meant to lower prices. However, the Himachal Pradesh government subsequently imposed an additional goods tax on cement, which according to the opposition, effectively nullified the relief intended by the GST reduction.
Cement manufacturers and dealers attribute the price increase to several factors like production costs, transportations expenses, power costs and inflation.
Timing raises concerns
The timing of the price increase—in the first week of January when construction activity traditionally picks up after winter—has raised eyebrows. Many believe companies deliberately time price hikes to coincide with periods of increased demand.
Additionally, with the state government having recently received Rs 601.92 crore from the central government under NDRF for disaster reconstruction, there was an expectation that cement demand would rise as rebuilding work intensifies. The price hike at this juncture appears calculated to maximize profits from anticipated increased consumption.
