India's cement industry faces packaging crisis as West Asia conflict disrupts polypropylene supplies. Cement bag costs have surged from 6-7 rupees to 11-12 rupees per unit due to PP shortage, with per tonne cement costs rising by approximately 60-80 rupees. Gulf refineries are diverting petrochemical feedstock toward LPG production, leaving bag manufacturers receiving only 60-70 percent of contracted supplies. Raw material costs have jumped nearly 70 percent in two months. Industry analysts project PP cement bags will see cost escalation of 30-40 percent. Major cement producers like Shree Cement report operational tightness and margin pressure. Alternative packaging options remain commercially unviable at scale, leaving the industry vulnerable to further supply disruptions and price increases.
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