India: Cement manufacturers hike prices by INR 10-30/bag for Sep’26

• Aug demand remains weak amid monsoon disruptions
• Higher fuel and packaging costs pressure margins

Cement manufacturers have announced price increases of INR 10-30/bag across major domestic markets for September 2026 dispatches, market sources said. The hikes follow a subdued August, when weak demand, monsoon disruptions and cautious procurement limited price increases. The East recorded the sharpest decline, while other regions saw mixed price movements.

Regional market trends

In the west, Mumbai prices declined by around INR 3/bag towards the end of August as dealers reduced offers amid weak lifting. A proposed mid-August hike failed to gain wider acceptance. Manufacturers have now indicated an INR 10/bag increase for September, which is expected to reflect in wholesale selling prices this week. Ahmedabad prices remained largely stable, with mills also announcing an INR 10/bag hike for September.

The eastern region saw the steepest correction, with average trade prices falling by around INR 26/bag in August. Continuous rainfall, particularly in Kolkata, disrupted construction activity and reduced fresh lifting. Dealers lowered offers to stimulate sales, while material movement and availability remained key concerns. Mills have announced September hikes of INR 20-30/bag.

In the south, Chennai manufacturers announced increases of INR 15-25/bag for September. Trade prices rose by around INR 17/bag at the beginning of September, supported by moderate buying and end-user offtake. Hyderabad prices declined by around INR 3/bag in August as rainfall weakened lifting.

A leading producer raised prices by INR 20/bag for early September, while other regional brands increased prices by around INR 15/bag.

In the central region, Raipur prices remained volatile in August amid weak demand, ample availability and mill-level attempts to raise prices towards month-end. No price hike was announced by mills in the region.

In the north, prices remained broadly stable through mid-August, supported by infrastructure demand despite seasonal rainfall. However, dealer-led reductions towards month-end resulted in an average decline of around INR 10/bag in Delhi.

Update on project orders

• Ceigall India: INR 5,300 cr Gujarat renewable-energy evacuation/grid connectivity project; INR 704.7 Cr Arunachal Pradesh Frontier Highway project.
• Brahmaputra Infrastructure: INR 2,000 cr road/rail tender opportunity; INR 11.59 cr Assam healthcare renovation; INR 70.18 cr Mizoram road-maintenance L1 bid.
• RVNL: INR 405 cr Odisha/East Coast Railway infrastructure order for bridges, RUBs and allied civil works.
• KNR Constructions: INR 157.55 cr Hyderabad urban-transport flyover and underpass project.
• EMS Ltd: INR 2,186 cr Rajasthan wastewater/sewerage project across six urban local bodies.
• ARSS Infrastructure: INR 209.03 cr Odisha railway order for two road-over-bridges.
• NCC: INR 430.19 Cr building-construction orders; INR 121.74 cr Rajasthan education infrastructure order for 170 schools.
• Bondada Engineering: INR 10,023 cr defence and renewable-energy order book.
• Kalpataru Projects International: INR 339.45 cr Kolkata power-transmission project.
• Balaji Builders: INR 140.32 cr Maharashtra water-supply project under AMRUT 2.0.
• NBCC: INR 134.27 cr education infrastructure order across five states; MoU with NHPC for PAN-India infrastructure projects.
• KEC International: INR 1,889.11 cr civil/railway infrastructure order, including civil works, bridges, stations and electrical services.
• Cemindia Projects: INR 665.61 cr Bengaluru urban-rail order for elevated viaduct, double-decker station.

Rising input costs support price hikes
Higher input costs are adding pressure to cement manufacturers’ margins. Non-coking coal prices increased 15% m-o-m to INR 5,900/t in August, while pet coke and crude oil prices rose by 10% and 7%, respectively.

HDPE cement bag prices increased 42% to INR 13.5/bag, adding further packaging cost pressure. Meanwhile, PPC cement prices declined by 1% to INR 362/bag.

The combination of higher fuel, energy and packaging costs is strengthening manufacturers’ push for September price increases, despite subdued demand.

Outlook
Trade-level prices may remain under pressure in the coming days as monsoon conditions continue to restrict construction activity and procurement remains cautious. The success of the announced hikes will depend on volume recovery and market acceptance.

Festive-season disruptions to vehicle movement could also limit market activity and make it difficult for manufacturers to fully sustain the increases across all markets.