8:54 am - Monday July 22, 2019

Cement price hike: Developers demand rollback, to stop purchase

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The Confederation of Real Estate Developers’ Association of India (Credai), along with Telangana and AP chapters, has opposed the cement manufacturers’ move to increase prices by 50%.
Voicing their protest, the real estate body has decided to stop the purchase of cement from July 5 to July 12 if the price hike is not rolled back in both the states.
Along with this, Credai also plans to file a complaint with the Competition Commission of India (CCI) against the illogical price hike as it creates pressure on developers to increase sale prices by nearly 20%.
Credai, in association with Andhra Pradesh Real Estate Developers’ Association (APREDA), Telangana Real Estate Developers’ Association (TREDA), Builders Association of India (BAI) and Telangana Builders Federation, have come together to form a joint action committee (JAC) to oppose the unjustified and steep hike in the cement prices by the cement manufacturers.
The JAC, which is represented by more than 2,000-odd developers community and 1,000 small, medium and mega contractors, have unanimously decided to stop the procurement of cement from July 5 due to unjustified increase in cement prices.
Currently, cement prices, which were hovering between Rs 150 and 170, now cost Rs 300 and Rs 350 per bag in both the states due to cartelisation by the cement manufacturers. “We have decided to go for a `purchase holiday’ as this steep hike in unwarranted,” C Shekar Reddy, president Credai and chairman of JAC, said.
Cement manufacturers have increased prices across the southern states by Rs 60 in Tamil Nadu, Rs 40 in Karnataka, Rs 40 in Kerala and Rs 110 in Telangana and AP.“We feel Rs 225 per bag is an agreeable price in both the states as opposed to Rs 350 as most of the cement plants are located here,” he added.
“The costs of inputs like steel, labor, funding, etc. have been on the rise, contributing to the increased cost of homes and we are fighting against this trend,” Credai chairman Lalit Kumar Jain, said. Steel prices have gone up from Rs 47,000 to Rs. 52,000 per tonne, labor cost has increased by 20%, building products like electrical, wood, paint and sanitary ware by 5%. Thus, the construction cost will overall see a nearly 20% hike,” he explained.

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