CHENNAI: Cement prices have gone up by Rs 50 a bag this month, sparking anger among developers and builders, who claim it has been done deliberately for profiteering at the fag end of the financial year and hampering ongoing works. “There has been an increase of Rs 50 in the price of a 50-kg cement bag.
It was Rs 390 per bag and now it has risen to Rs 440. What is the reason for this increase?” asked Builders Association of India (BAI) State treasurer S Rama Prabhu. Cement is one of the major materials used in all segments of the construction industry namely, housing (55% to 65%), infrastructure (15% to 25%), commercial and industrial construction (10% to 15%) and industry (5% to 15%).
“Already, builders and developers have been struggling to complete projects affected by the lockdown. This rise will put huge pressure on builders. From next week onwards, work in many sites will come to a standstill due to this,” said Rama Prabhu. He felt that the price of cement could be lowered only after elections.
BAI and Confederation of Real Estate Developers’ Associations of India (CREDAI) have been urging the Prime Minister to form a Cement Regulatory Authority (CRA) to curb cartelization in the industry. They want the government to comply with recommendations of the Parliament Standing Committee in this regard. The South India Cement Manufacturers Association has stated that builders and developers are spreading misinformation among the public and their intent is to take advantage of economic recovery and further increase real estate prices.