Real estate news on Rising price of cement crippling the realty sector, say builders

Building materials, Price Trends, Chennai
Posted on Apr 04, 2015

The Tiruchi centre of Builders Association of India has expressed concern over the increase in the price of cement and has called for steps to bring down the price of the important raw material for the construction industry.

M. Thirusangu, the new chairman of the centre, and M.Sidharthan, past chairman, told presspersons here that the construction industry had been adversely affected in Tiruchi as the cement prices continued to rule high.

Over the past six months, the price of cement has gone up by Rs.100 a bag without any reason, they said.

“The increase in the price is perplexing as there is no increase in the price of raw material used for manufacture of cement. There is no increase in taxes either. Yet the price of cement rules high in Tiruchi, even though many cement factories are located nearby,” said Mr. Sidharthan.

The price of cement in Tiruchi was higher than that in Chennai and other neighbouring States, the builders said.

Mr. Thirusangu said the BAI would launch an agitation if the situation remained the same.

Meanwhile, the BAI at the national level had been taking steps to import cement for being supplied to its members, he said.

A.K. Yussouf, former national president, BAI, said the price of imported cement was cheaper and the current increase in the price of cement domestically was not good for the countrys economy.

The government, he said, had been providing captive mines to the cement manufacturers, who had an obligation to pass on the benefit to the consumers.

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