Cement manufacturers in the State have increased prices by 37% in the last few days, affecting construction projects.
Addressing a press conference on Tuesday, Builders' Association of India Trustee and past national president R. Radhakrishnan said the abnormal price rise has affected the housing sector and infrastructure development in the State.
Increase unethical
“The price of basic raw materials in manufacturing of cement has not increased. The price of cement bag has increased by ₹100. This increase is totally unethical. We request the government to form a separate regulatory authority,” said Mr.Radhakrishnan. “The price of ordinary portland cement has increased from ₹250 last week to ₹340 to ₹360 this week. Distribution has also stopped,” he said. Pointing to the intervention by State government to reduce cement prices previously, Mr. Radhakrishnan claimed that the State government had even threatened to nationalise the cement factories several years ago to reduce prices. “They started Amma Cement to offer cement at affordable prices. A common man who builds a 500 sq. ft. house would have to spend an additional ₹1 lakh because of the price rise,” he said.
‘Irrational pricing’
State chairman S.Ayyanathan said builders will be forced to protest against Tamil Nadu cement manufacturers’ irrational decision to increase prices. Construction is one of the most important economic activities contributing to maximum GDP growth of our nation. Housing and real estate industry consumes about 65% of cement production followed by infrastructure sector at 18%, said Mr. Ayyanathan.