New Delhi, March 26 -- India's cement industry is staring at an unusual supply disruption-not of limestone or coal, but of the humble cement bag.

As the war in West Asia ripples through petrochemical supply chains, polypropylene (PP), the key raw material used to manufacture cement packaging bags, is turning scarce.

The crunch is pushing up costs, squeezing MSME bag makers, and adding fresh margin pressure on cement companies already grappling with higher fuel expenses.

According to industry estimates, the cost of a single cement packaging bag which was Rs.6-7 until recently, has now climbed to Rs.11-12 due to a PP shortage.

Due to the shortage, per tonne cost of cement will increase by roughly Rs.60-80, considering 20 bags of 50 kg e...