December 18: Cement industries have increased the price of Ordinary Portland Cement (OPC) by Rs 100 per bag during the peak season of construction. The Federation of Contractors Association of Nepal has said that its attention has been drawn to the decision of the cement industry to increase the price.

The federation has objected to the price hike accusing the cement industry of increasing the price through 'cartel'.

Ravi Singh, president of the federation, said that cement industries always increase the price when it is the peak time for construction work. "We had bought cement by paying the factory price of Rs 400 per bag, but the cement industry decided to increase the price by Rs 100 per bag just two to three days ago," said Singh.

Singh said that it would be difficult to work at a time when the government is yet to release their due payment and the cement industry increases the price.

Now the industry has fixed the price of cement from a minimum of Rs 550 to a maximum of Rs 800 per sack. Construction entrepreneurs are complaining that the price of cement has been increased even though there is no increase in the price of raw materials related to cement production as well as the fuel price.

"Our serious attention has been drawn to the fact that limited cement manufacturers have increased the price by more than Rs 100 per bag recently through cartel," the statement said, "This kind of unreasonable and unscientific price hike contrary to the policy of open market economy is not acceptable."

The federation has mentioned that the financial burden has increased due to the increase in the cost of construction. The construction industry itself is on the verge of collapse due to the delay in payment of billions of rupees to the construction workers along with the complications seen in the extension of the project deadline. The federation has also demanded to cancel the price hike immediately.

On the other hand, Dhruva Thapa, president of Nepal Cement Producers' Association, responded that it is natural for prices to increase as it is the construction season.

"The association has not officially increased the price of cement," Thapa said, adding, "My company itself sold cement at a loss of Rs 70/80 per bag in July/August."

He said that the industry which was producing at a loss may have opted to increase the price. He said that although the construction season has started, the demand for cement in the market has not increased significantly.