NEW DELHI: Realtors' apex body CREDAI today alleged that cement makers have "artificially" raised prices by up to 40 per cent in the last two months across the country which could lead to an increase in construction cost of projects.
"Cement prices have witnessed a sudden jump of 20-40 per cent in a short span of 2 months across India...This unjust price rise may increase the construction cost which will have to be passed on to the consumers," CREDAI said.
The association said the cost of production of cement has remained constant. "We are in talks with other affected parties like Builders Association of India as well as National Highway Builders Federation for possible joint action against this artificial price rise," CREDAI said in a statement.
The association said it has received numerous complaints and protest mails from its members across India about cement companies jacking up prices."We are pained by the complaints of unjustifiable and collusive jacking up of cement prices by cement manufacturers across India which have a potential to create unnecessary roadblocks and impediments in achieving the goals of Housing For All by 2022 envisioned by our Honourable PM," CREDAI President Jaxay Shah said.
CREDAI said it has regularly requested the government for putting an end to the "collusive practices" in the industry and rein in the price hikes. It is estimated that Rs 100 rise in cement price per bag results in increase in construction cost of a project by at least Rs 50 per sq ft.