KATHMANDU; The prices of construction materials have again

skyrocketed. According to dealers of construction materials, the start of construction season has widened the demand-supply gap. Other factors like load-shedding and transportation problems due to political instability are also the causes of

the price hike. The prices of major construction materials — cement and steel in particular — have soared sharply, pushing the cost

of construction up by as much as 20 per cent.

Claiming that there

are supply bottlenecks during peak construction season, cement dealers have jacked up cement prices in a range of 18 to 32 percent as compared to prices recorded a month ago.

Retailers say the price of popular Nepali cements like Hetauda and Udaypur brands has jumped to Rs 700-725 per 50kg sack. The increase is still sharper in the case of Indian cement, according to contractors. Latest pricing in the market shows that the price of Indian cement like Ultra-Tech has jumped to as high as Rs 725 per 50kg sack. Reportedly, some retailers are also cheating in the weight of the cement sacks. When confronted, they respond that the weight of the sacks was less even while purchasing from the dealers itself. Such traders are garnering an average of Rs 10 profit on each underweight sack. Since cement alone occupies 29 per cent of the overall construction cost, such a sharp rise in its price has made new construction expensive by about 10 per cent than what it was a month ago, said Roshan Dahal, a contractor and also the past president of Nepal Construction Materials Dealers´ Association. This 10 per cent cost hike is aside from the cost hike caused by the price rise of steel, iron rods. The association

attributes the price rise to increase in price of raw materials in the international market and the increasing load-shedding which has hiked cost of production.

According to manufacturers, labour issues should be sorted out and power supply resumed so that production efficiency does not decline. “The government should introduce ‘no work, no pay’ so that no one can cook up excuses for not working,” said a dealer at Teku, Hira Ratna Bajracharya.

Price of cement in the market

1. Nirman cement Rs 560 per 50kg

2. Reliance cement Rs 700 per 50kg

3. Bir2 cement Rs 675 per 50kg

4. Himal Cement Rs 655 per 50kg

5. Jagadamba cement Rs 670 per 50kg

6. Ambe cement Rs 655 per 50kg

7. Prizma cement Rs 640 per 50kg

8. J P cement Rs 660 per 50kg

9. Hetauda cement Rs 725 per 50kg

10. Maruti cement Rs 720 per 50kg