Cement prices in South India have increased by ₹10 per 50-kg bag in August, with Tamil Nadu, Karnataka and Kerala witnessing the hike, according to channel checks. In Tamil Nadu, wholesale prices have risen to ₹310-315 per 50-kg bag, while Kerala prices are now around ₹320 per bag and Karnataka prices stand at ₹320-330 per bag. There has been no change in cement prices in Andhra Pradesh and Telangana, while prices have also remained unchanged across West, North and East India. Central India has seen a marginal price decline of ₹3-4 per 50-kg bag during this period.
The latest increase follows a price hike in Q1, when cement prices rose by around ₹15 per 50-kg bag on average. East India saw the sharpest increase of around ₹27 per bag in Q1, while West, North and South India witnessed hikes of ₹13-15 per bag. Central India saw prices rise by ₹7-9 per bag during the quarter. The latest price increase is aimed at offsetting higher input costs, particularly packaging and freight expenses, as reported by market sources.
Analysts estimate that the industry may require a cumulative price increase of around ₹35-40 per 50-kg bag to fully offset the impact of higher input costs, with the impact expected to be spread across Q1 and Q2. This represents a significant increase from the current ₹10 per bag hike, indicating that further price adjustments may be necessary to maintain profitability margins for cement manufacturers facing rising operational costs.
