Cement Price in Kerala: Latest Cement Price List in June 2024

It’s vital for professionals involved in construction and development projects to stay updated on the latest cement prices in Kerala. This blog aims to provide a thorough breakdown of the current cement prices across different brands and types. Knowing these prices is crucial for effective financial planning and project management, especially with the ever-fluctuating market conditions. Our detailed guide will serve as an invaluable resource for builders, contractors, and even DIY enthusiasts, ensuring that you make the most informed decisions regarding cement purchases for your upcoming projects.

 

 

Cement Price in Kerala

Cement Price in Hyderabad and others cities are different and in Kerala the cement prices have recently increased noticeably, mirroring the trends observed in the broader construction sector. This price rise can primarily be attributed to disruptions in the supply chain and escalating raw material costs. Builders, contractors, other companies, and homeowners in Kerala are advised to adjust their budgets accordingly to manage these upward price movements effectively.

Check out the detailed price table for various brands and grades of the best cement available in Kerala.

 

Cement Brand	Grade	Price
Ramco	PPC	Rs. 305
Ramco	OPC 43 / 53	Rs. 340
Sanker	PPC	Rs. 310
Sanker	OPC 43 / 53	Rs. 345
Ambuja	PPC	Rs. 320
Ambuja	OPC 43 / 53	Rs. 350
ACC	PPC	Rs. 320
ACC	OPC 43 / 53	Rs. 350
Dalmia	PPC	Rs. 305
Dalmia	DSP	Rs. 320
Dalmia	OPC 43 / 53	Rs. 345
Chettinad	PPC	Rs. 285
Chettinad	OPC 43 / 53	Rs. 320
UltraTech	PPC	Rs. 335

 

Note: The above pricing list is as of June 25th, 2024 and includes GST. Please note that prices may vary based on the quantity of cement ordered and the exact location of the site.

 

GST on cement price in Kerala

The GST rate on cement in Kerala, as well as throughout India, is consistently set at 28%. This rate applies to all types of cement, including super sulphate, slag, aluminous, and Portland cement, regardless of whether they are coloured or clinked.

 

Impact of cement price hike on Kerala’s market

 

 

The impact of the recent cement price hike on Kerala’s market is multifaceted, influencing various sectors and stakeholders. Here are some key points to consider:

Increased Construction Costs: 

The cement price hike is expected to lead to higher construction costs. This will affect large-scale infrastructure projects as well as smaller, private constructions, which could see increased overall expenses​​.

Impact on Housing Affordability: 

Higher cement prices can make housing less affordable. This is particularly challenging in a state like Kerala, where there is a significant demand for affordable housing. The increased costs may be passed on to consumers, affecting the affordability and accessibility of new homes​​.

Pressure on Real Estate Developers:

 Developers might face margin pressures as the cost of raw materials increases. This could lead to delayed projects or increased prices for new real estate developments, potentially slowing down the growth of the real estate market in the region​​.

Economic Implications: 

The construction sector is a significant component of Kerala’s economy, and any disruption, such as a price increase in essential materials like cement, can have broader economic implications. This could affect employment, investment, and growth in the construction and real estate sectors.​

 

What did the Government do to bring down the cement prices?

The Indian government has implemented various strategies to address the rising cement prices. Here are some of the key measures:

Enhancing Cement Production: 

The Kerala state government has actively worked to boost its own cement production to help stabilise and reduce the market prices​​.

Engagement with Cement Producers:

The state government has also engaged private-sector cement producers to discuss possible price reductions, facilitating conversations that might lead to more competitive pricing strategies​​.

Improving Logistics and Distribution: 

Initiatives such as enhancing the logistics network for cement distribution have been targeted nationally. This includes proposals to transport cement more efficiently across regions, potentially lowering prices due to reduced transportation costs. The government is exploring a range of multimodal transport options that combine sea, river, and road transport to optimise the supply chain​​.

Regulatory and Fiscal Measures: 

In the broader economic context, the government’s fiscal policies and regulatory measures aim to support competitive pricing for raw materials and energy sources, which are crucial for the cement industry. These efforts are part of a broader national mission to enhance manufacturing productivity and quality.

 

How do cement prices impact the input cost of construction?

Cement prices significantly affect the input costs of construction projects in Kerala. As a major construction material, any fluctuations in cement prices directly impact the overall budget of construction projects. 

A price increase in cement leads to higher costs for developers and builders, potentially causing delays in project timelines or even scaling back certain construction plans. Additionally, sustained high cement prices can lead to increased costs for new homes and infrastructures, affecting affordability and economic growth in cities across the region​.

 

Associated input cost of constructing a house in Kerala

The cost of constructing a house in Kerala varies depending on several factors, including the quality of materials, labour costs, and the overall size and design of the house. Here’s a general breakdown:

Construction Cost per Square Foot:

The cost ranges from ₹1,500 to ₹2,500 per square foot, which includes materials, labour, and overhead expenses​​.

Material Costs:

• Cement: ₹400 – ₹420 per bag
• TMT Steel Bars: ₹80 per kg
• M-Sand: ₹3,000 – ₹3,500 per unit
• P-Sand: ₹3,800 per unit
• Bricks: ₹10.50 per brick
• Wood Works: ₹2,00,000 – ₹3,00,000 for a 3BHK house
• Electrical and Plumbing: ₹90 – ₹110 per sq. ft​.

Labor Costs:

Skilled and unskilled labour costs are significant and vary by region and expertise. In Kerala, these costs are influenced by the availability of skilled artisans​​.

Additional Costs:

• Foundation and Site Preparation: Costs depend on soil conditions and the type of foundation required.
• Government Regulations and Permits: Compliance with local building codes and regulations, including eco-friendly construction practices, may involve additional costs​ 

For a more detailed and accurate estimate, it is advisable to consult with local architects or construction professionals who can provide tailored cost and time projections based on specific design requirements and current market conditions.

 

How will the increase in cement prices affect housing projects?

 

 

The increase in cement prices is expected to impact housing projects in various concrete ways significantly:

• Increased Construction Costs: As cement prices rise, developers’ overall construction costs will escalate. This is likely to affect the profitability of both ongoing and upcoming housing projects.
• Higher Property Prices: With the increase in input costs, developers might be compelled to raise the prices of homes. This could lead to higher property prices, impacting buyer affordability and possibly slowing down the housing market’s demand.
• Impact on Affordable Housing: The rise in cement prices poses a particular challenge to affordable housing projects. These projects operate with thin margins and aim to keep costs low to maintain affordability. The increased costs may lead to delays or cancellations of some of these projects, affecting the availability of affordable housing.
• Future Market Dynamics: The overall real estate market dynamics will likely be affected. The increase in input costs might slow down the pace of new developments and could lead to a reassessment of project feasibility in light of higher costs.

 

Cement price in Kerala: Recent developments

Recent developments in cement prices in Kerala indicate a fluctuation with prices currently ranging between Rs. 320 and Rs. 410 per 50 kg bag for premium quality cement. This variation is largely influenced by the availability of stock and the frequency of updates from cement manufacturers in the region. Factors such as increased costs of imported coal and pet coke have historically impacted cement prices, contributing to regional spikes. In 2021, Kerala experienced a sudden price rise, and similar trends were expected for early 2022 due to these external cost pressures.