Cement prices have shot up by around 60% in the State, the highest ever, raising serious concerns among builders and real estate developers.
If a bag containing 50 kilograms cement costed around ₹230 a week back, the same quantity is available in the market for more than ₹370 now.
On Monday, a Joint Action Committee (JAC) comprising of Confederation of Real Estate Developers’ Associations of India (CREDAI), Telangana Real Estate Developers’ Association (TREDA), Builders Association of India (BAI), Telangana Builders Federation (TBF), Telangana Developers Association (TDA), and other small and big member groups termed the price hike as “unjustified.”
The members appealed to the cement manufactures to immediately roll back the price.
‘No reason for hike’
S. Ram Reddy, president of CREDAI and chairman of JAC, said that it has become a normal practise for the cement manufacturers to increase the price of the commodity with a malafide interest.
“There is no reason for the hike. Fuel or power costs have not increased and the companies are making good profits. The construction activity in the State will collapse if the price rise continues, and the common man will suffer the most,” he said.
Mr. Reddy said that the JAC tried to engage with the Cement Manufacturers Association but failed to get any response. The members are also considering other options in case the cement manufacturers do not respond positively to their call.
“If the cement companies continue to exploit the market with cartelisation, we will think about the option of importing cement,” said G.V. Rao, president, Telangana Developers Association and co-convenor of the JAC.
“The cement prices in Iran, Pakistan and South Korea are very less compared to the existing price in the State. The price of cement after importing from these countries will not cost more than ₹230 per bag,” he said.
S.N Reddy, vice-president of BAI, said that they are planning to meet Prime Minister Narendra Modi with a request to constitute a Cement Regulatory Authority.
According to the members, the two bedroom housing scheme and Central government housing schemes will be affected with the latest price hike.
