Cement manufacturers and construction entrepreneurs are set to propose a maximum price ceiling for cement to the government. This follows a recent hike of over Rs 150 per bag, which construction entrepreneurs protested, citing increased costs at a time when public construction projects were gaining momentum.

During a discussion held on Wednesday, chaired by Minister for Industry, Commerce, and Supplies Damodar Bhandari, government officials, construction entrepreneurs, and cement manufacturers agreed to revise current cement prices and recommend a maximum limit, according to Dik Bahadur Karki, information officer at the Department of Commerce, Supplies, and Consumer Protection.

“Considering the impact of the price hike on public works and housing construction, we urged cement manufacturers to reduce the prices,” said Karki. “As a result, cement manufacturers and construction entrepreneurs agreed to recommend a maximum price.”

Ravi Singh, president of the Federation of Contractors Association of Nepal, stated that cement manufacturers have tentatively agreed to cap the maximum retail price of Ordinary Portland Cement (OPC) at Rs 700 per bag and Portland Pozzolana Cement (PPC) at Rs 600 per bag in Kathmandu. Currently, OPC is priced at Rs 880 per bag, and PPC at Rs 780 per bag.

Cement manufacturers have defended the price hike, citing losses incurred over the past several months. "Some manufacturers have been selling at a loss of millions of rupees per month. The recent increase in cement prices is due to the rise in demand with the start of the construction season," Raghunandan Maru, president of the Nepal Cement Manufacturers Association, had told New Business Age in an earlier interview last week.

Construction entrepreneurs, however, criticized the sudden price increase, warning that public construction projects could face delays. They accused cement manufacturers of forming a cartel to raise prices even when the demand in the market remained low. During Wednesday’s meeting, they reiterated these concerns and warned of halting public construction works.

Although cement manufacturers initially resisted reducing prices, they agreed to reconsider after requests from the minister and other stakeholders. “Following the discussions, an agreement was reached to propose a maximum price through further consultations between cement manufacturers and construction entrepreneurs,” Karki said. “They plan to present their recommendations within the next 2-3 days.”