A surge in wholesale and retail prices of cement in the State is likely to impact the post-floods reconstruction works here.
A 50 kg cement bag now costs between ₹405 and ₹410 in the wholesale market and between ₹425 and ₹430 in the retail market. Dealers claimed that a hike between ₹10 and ₹20 was effected on October 1.
These prices are among the highest in South India as the corresponding figures in the retail market in neighbouring Karnataka and Tamil Nadu are around ₹340 and ₹365, respectively.
In July-August, the retail prices hovered around ₹380 in Kerala and there was a dip after the floods.
M.V. Sakkeer Hussain, general secretary, Kerala Cement Dealers’ Association, told The Hindu on Wednesday that higher handling charges and transportation costs were to be blamed for the higher retail prices in the State.
“The higher cost on loading and unloading charges and cost of transportation are automatically passed on to the end consumer. Officials who propose higher handling charges for workers do not realise its impact on the consumer. The recent hike will hit the reconstruction works for sure,” he said.
Functionaries of the association also alleged that the cement manufacturers were reluctant to set the billing process in accordance with the Goods and Services Tax (GST).
Talks held
Meanwhile, the government is learnt to have held talks with the manufacturers and broached the possibilities of bringing down cement prices for flood-hit families who are planning reconstruction of their buildings.
The authorities, however, have not sought a uniform reduction in the prices as it would have an impact on the government’s tax revenues.
GST factor
There is another section of dealers who believe that the companies might have hiked the prices considering the demand to reduce the GST on cement from the existing 28% to 18%, which might lead to a dip in their profits.
Mr. Hussain claimed the manufacturers had promised to reduce cement prices after functionaries of the association held discussions with them recently.