Cement Prices May Rise in Andhra Pradesh, Telangana by ₹30–40 Per Bag

Cement manufacturers are looking to increase wholesale cement prices in Andhra Pradesh and Telangana by ₹30–40 per 50-kg bag in the first week of September, according to dealer inputs. If implemented, the proposed increase could push prices up by around 10% across the two southern markets.

The potential price revision comes at a time when cement companies are dealing with higher input costs, particularly in packaging and freight. The timing also coincides with expectations of stronger demand during the upcoming festive season.

Cement prices could rise around 10%

A-category cement, currently selling at around ₹285 per 50-kg bag, could see its price rise to approximately ₹315 if the proposed ₹30 increase is implemented. That would represent an increase of about 10.5%.

B-category cement, currently priced at around ₹250 per bag, could move up to approximately ₹275, translating into a 10% increase.

While manufacturers are considering a broader ₹30–40 per bag increase, dealers indicate that the actual revision could differ depending on the brand and cement category.

Higher than recent southern market increases

The proposed hike in Andhra Pradesh and Telangana would be significantly sharper than the price increases recently seen in other major southern markets.

Cement manufacturers had raised prices by around ₹10 per 50-kg bag in Tamil Nadu, Kerala and Karnataka during August. Current prices are around ₹310–315 per bag in Tamil Nadu, ₹320 in Kerala and ₹320–330 in Karnataka.

If the proposed increase goes through, Andhra Pradesh and Telangana would therefore see one of the steepest cement price revisions in South India in recent months.

Input costs remain a concern

Higher packaging and freight expenses have added pressure to cement manufacturers’ cost structures. The industry had already implemented a relatively modest price increase during the first quarter, with prices rising by around ₹15 per 50-kg bag on average.

Analysts believe there is still room for further increases. Estimates suggest cement companies may need a ₹35–40 per bag increase to fully offset the impact of higher input costs.

The festive season could provide manufacturers with an opportunity to push through higher prices if demand strengthens. Dealer feedback indicates that companies are looking to use this period of potentially improved demand to support the proposed revision.

For cement buyers, contractors and construction companies in Andhra Pradesh and Telangana, the development could translate into higher material costs if the full increase is passed through to the market.

The extent of the price increase will ultimately depend on individual brands and categories, while the final implementation and pricing may vary across the two states.