The price of cement has increased by Rs. 20 to 25 per sack after the government imposed a 5% excise duty on cement.
Why has the price increased?
Previously, a flat Rs. 220 per ton was charged as excise duty. Now, the duty is set at 5% of the selling price, which has led to a sharp rise in overall costs.
According to Raghunandan Maru, President of the Cement Manufacturers Association:
“Earlier, the excise was Rs. 11 per sack. Now, it has reached up to Rs. 35, causing an average price increase of Rs. 20 per sack.”
Industry and market impact
- Brand and type of cement determine the exact price hike.
- Cement producers had already started increasing prices periodically since Mangsir–Poush 2081, claiming financial losses.
- They were previously accused of cartel-like practices due to coordinated price hikes.
What do stakeholders say?
- Pashupati Murarka of Arghakhanchi Cement confirmed a Rs. 15–20 per sack increase based on region and type.
- Ravi Singh, President of Nepal Construction Entrepreneurs Federation, stated:
“The price has risen by Rs. 20–25 per sack. This will affect ongoing and upcoming construction projects, especially during this high-demand season.”
