If you are thinking of building your dream home after the end of Pitru Paksha or during Navratri, then this news can affect your pocket. News is coming that in October this year, cement prices may increase by Rs 5 to Rs 20 per bag in many parts of the country. A rise in cement prices was seen in September also.
Cement rates had increased in September also
The biggest rise was seen in South India, where prices rose by Rs 11 per bag. Whereas in Western India, cement became costlier by Rs 9 per bag. In areas of North, Central and East India, cement prices increased by Rs 5 each per bag.
According to reports, the average trade price of cement across the country had increased by Rs 7 to Rs 356 per bag in September after remaining calm in July and August.
Why are cement prices increasing?
The first reason is the rising prices of fuel and coal. Fuel and energy play a big role in making cement and transporting it from one place to another. The cost of fuel and energy has increased in recent weeks, which has increased the pressure on companies.
The second reason is the increase in construction work after the rains. With the end of monsoon, pending construction works across the country start gaining momentum. As demand increases, companies try to increase prices.
The third reason is the efforts of companies to improve margins. Average prices remained low in the second quarter due to sluggish demand in July and August. Because of this, companies want to compensate their losses by increasing rates in October.
But will you get expensive cement immediately?
There is also relief news for customers here. Even in September, when companies had increased the billing rates, many cement dealers sold cement to customers at the old rates to meet their quarterly targets. In such a situation, market experts say that companies will try their best to increase prices in October, but whether the increased prices will be sustainable in the market or not will depend on how much cement people are actually buying.
If you are going to start the construction of a house, then it would be better to meet your nearest cement dealer to find out the current rates and decide the right time for advance booking or purchase as per your need.