KATHMANDU: In the wake of a 70 per cent drop in industrial manufacturing rate, Central Bureau of Statistics has indicated a slight improvement in the rate of production in the current fiscal year.

Manufacturing rate of cement and bricks increased by six per cent. However, prices of these construction materials increased by 3.5 per cent more than in the previous month. Retailers said the price of bricks has gone up to Rs 10,000 per thousand units. Even low grade bricks cost Rs 8,000 per thousand units. The new rate is more than twice the price a year ago. "The major reason is load-shedding and frequent strikes called by different political parties," said Roshan Dahal, a contractor. He added it is the peak season for construction and therefore the demand is higher.

Currently, the price of cement ranges from Rs 577- Rs 775 per 50-kg sack. Retailers attributed the difference to recent changes in taxes and dwindling supplies. Since cement occupies 29 per cent weight in overall construction budget, Dahal noted that the increase in its price has put added load on people planning new constructions.

Also, the price of steel rods that command 29 per cent weight in overall construction has increased to Rs 72 per kg. It was Rs 68 per kg a month ago. Retailers said the increase is due to increased price of rods imported from India. The price of aggregates, which also occupy substantial weight in construction cost, has jumped to Rs 52 per cubic feet over the past one month's Rs 42 per cubic feet.

[Courtesy: The Himalayan Times]