Vishal Rana, Hamirpur

In a surprising move, cement companies in Himachal Pradesh have raised the prices of cement, significantly impacting the construction industry in the state. The cost of cement has gone up by ₹10 per bag, affecting both urban and rural areas across the state. In Shimla, the price per bag has increased from ₹460 to ₹470, with similar increments expected throughout Himachal Pradesh.

Industry insiders suggest that this might not be the last price hike; there is a possibility of further increases in the coming week. This recent hike comes just three months after a ₹30 reduction per bag, indicating a volatile pricing strategy by the companies. Notably, cement prices in the state are not regulated by the government, leaving pricing decisions entirely in the hands of the companies.

Himachal Pradesh, despite being a major producer of cement, ironically faces higher prices for the commodity within the state. The three key players—ACC, Ambuja, and JP Cement—dominate the production in the region. The surge in cement prices is expected to have a ripple effect on construction projects, including those funded by the government. Though the government negotiates rates with these companies, these contracts are subject to periodic revisions, which can lead to cost escalations over time.

In remote areas of the state, the impact is likely to be even more severe. The cost of cement there is typically higher due to added transportation costs, which are factored into the final price. Dealers have already received instructions from companies regarding the new prices, indicating that the hike is immediate and inevitable.

The sudden increase in cement prices poses a challenge for both private and public construction projects across Himachal Pradesh. With further hikes on the horizon, residents and contractors alike may need to brace for a more expensive future in building and development. The government’s hands-off approach to regulating cement prices raises questions about the long-term affordability of essential construction materials in the state.