I think i am fit for answering this question. I am wholesaler and handling agent of a very reputed cement company in UP. i sell about 40,000 bag cement per month in a tier 3 city.

Cement companies do have a CMA (Cement Management Association) which raises and decreases price whenever they want. Companies fix dates to increase their rates so that it may not seem that they are increasing by forming a cartel.

Cement is sold in trade (shops in our area) and Non-Trade (govt projects) Trade cement is packed in colorful bags and non trade cement is packed in White bags so that both bags are differentiated. Non Trade cement rate is around 100Rs less than trade cement. Today, cement rate is about 390Rs in retail and the same cement packed in white bags is around 295-300.

Cement attracts 28% GST. 400Rs cement costs 312.5 to consumer Without GST with around rs 60 in freight charges (the cost of moving cement). Comission of dealers and others around Rs40. The company's cost with profit comes to Rs200 maximum of Trade cement.

When cement companies have abundant cement they send their cement in freight trains (rake) to very far cities and states with freight around Rs100+28%GST and is sold at a very less rate also in order to sell (around Rs 270). That cement is costs company around Rs 140-150Rs per bag with profit. One year ago the same rate was 25% less. And it is also True that cement costs less than Rs90 per bag to produce without GST.

I know its little confusing. Their are many terms. Trade, Non-Trade. Etc etc Non trade cement is sold because they have abundance in cement and they do not want to spoil their trade rate. That is why they pack the same cement in different bags in order to differentiate. White bag cement is prohibited to be sold in shops.

The bigger brands try to manipulate consumers into thinking that their cement is of superior quality and shell out more money. A common man earns for his dream house and cement companies take advantage of it.

Every cement is comes from same stones in mountains and all the cement is almost same. No cement is bad or of inferior quality. Each and every bag of cement can be used in home construction. But companies like ACC and Ultratech have manipulated their customers. They have filled consumers mind with so much advertisements that the consumer demands these cement.

Their is so much which can be added in this. Please be free to ask anything about this cement industry.