SHIMLA: Cement prices in Himachal Pradesh have surged by around Rs 25 per bag over the past month, placing an additional financial burden on residents already dealing with increasing construction costs. Retail prices in Shimla, Solan and other districts reached Rs 410+ per bag following a fresh hike of Rs 10 to Rs 12 effected by manufacturers over the past fortnight.
The ongoing price increases have offset the relief consumers anticipated from lower GST rates. As construction materials continue to become more expensive, home construction across the state is growing increasingly costly.
Himachal Pradesh hosts six cement manufacturing plants. These include four units operated by the Adani Group under the ACC and Ambuja Cement brands, alongside two UltraTech Cement plants located in the Nalagarh and Darlaghat industrial belts.
Despite local production, consumers continue to encounter price hikes, prompting questions over the benefits local residents receive from in-state manufacturing. Manufacturers have linked the price revisions to rising input costs, higher diesel prices, and increased transportation expenses.
“Cement rate increases are normally due to sustained inflation in core raw materials and additives. Concurrently, rising global petcoke prices and energy tariffs have significantly increased production and logistics costs. Over the past six months, raw material, fuel and additive prices have risen by approximately 10 per cent,” an Adani Cement official said.
The official explained that the price adjustment was required to absorb extra expenses and maintain operational margins. He noted that retail rates vary across the state mainly due to freight charges, as cement is a low-value, heavy commodity. Over the last six months, prices increased by Rs 5 to Rs 15 across various locations.
Industry sources also highlighted significant cost increases in key raw materials. Gypsum prices rose by Rs 170 per tonne, red ochre by Rs 90 per tonne, and iron ore by Rs 35 per tonne, compounding overall production costs.
According to the Adani Cement official, prices currently range from Rs 397 per bag near the Darlaghat manufacturing hub to Rs 485 in distant areas such as Jeori in Shimla district due to freight impact.
