Moreover, there has been an exorbitant increase in cement prices, which has also subdued construction activities at various sites.

While the price of cement stood at an average of about Rs 290-300 a bag three months ago, the price for each bag has now been reported to cross Rs 450 in certain parts of the country, especially the South.

Cement prices in India rose 3 per cent Q-o-Q from January-March, after remaining subdued for the last few months. And, prices are expected to remain high due to the current operational challenges, shortage of supply and lower production levels.

This unprecedented hike in cement prices has posed to be a major concern for construction companies.

The Coronavirus pandemic has had an impact on the demand for cement in a big way. Cement companies have reportedly suffered huge losses and cement transportation has been affected in a major way due to the lockdown announcement.

Considering that March to June is the golden period of construction with activities in full swing during these months, cement manufacturers had earlier expected a growth in consumption to the tune of 6-7 per cent. Notably, the six months from January to June account for about 60 per cent of the total cement consumption in the country. With construction activity coming to a standstill over the past one and a half months, this growth has largely been impacted.

Moreover, the monsoon season soon to be followed will further hinder construction activities, thereby impacting the demand for cement. What’s more, logistics remains a big challenge, and so also transportation in terms of drivers available.

Amid all this, it is known that cement companies have asked dealers to increase cement prices to cover up for the loss faced during the lockdown.

Cement prices in the medium term in most markets is expected to be in the range of Rs 320-375 per bag (of 50 kg), as reported. As manufacturers may keep their production volumes low even after the lockdown is lifted, prices are expected to remain firm in the near term as demand for cement may remain weak over the coming few months. A few companies across the country have managed to keep prices resilient by operating at lower capacity. Companies such as JK Lakshmi Cement and JK Cement have started operations at Gujarat and Karnataka, as reports indicate, while UltraTech, Ambuja Cements and ACC are expected to resume operations in the next few days.