Production of Cement Drops

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Production of Cement Drops

December 3:  At least 150,000 sacks of cement produced by the state-owned Hetauda Cement Factory have remained at the warehouse due to the falling demand of construction materials in the market.

The state-owned cement factory which once produced 10,000 sacks of cement per day has now cut the production to just 4000 sacks a day with the slump in demand of construction materials.

The falling demand of construction materials has also caused problems to the private companies. As a result, companies including Shivam, Argakhanchi, Cosmos, Agni, Jagdamba have also reduced their production.    

The government’s failure to increase capital expenditure has been blamed for the current crisis. The decline in demand of construction materials has forced the producers to compete against each other by lowering the price of their product.

At present, price of a 50 kg sack of PPC and OPC cements in average is between Rs 550 and Rs 650 after a decline in price by 5 to 6 percent. 

In the mean time, construction entrepreneurs of the country are currently in protest. The Federation of Contractors Association of Nepal has been demanding amendment of the Public Procurement Regulation.


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