Builders to stop purchasing cement

Builders to stop purchasing cement

Protesting against the sudden increase in cement prices by manufacturers, builders in southern states are planning to stop construction work till the rates are reduced.´There is no news on why there is an increase. What is the reason? Cement price has gone up by Rs 60 per bag to Rs 320. This is unwarranted,´ said Confede-¡ration of Real Estate Developers Associations of India (CREDAI) Chennai chapter President Ajit Chordia.

CREDAI officials said that cement was being sold at Rs 260, about 15 days back and now suddenly the prices have soared to Rs 320 now. The Builders´ Association of India National Trustee Radhakrishnan said that a regulatory authority must be set up for cement industry on the lines of TRAI for telecom sector.

He gave an example of the state government run TANCEM (Tamil Nadu Cement Corporation), which retails cement per bag at Rs 265 and was making profits, while private companies sold it at Rs 365 per bag.

C Shekar Reddy, National President CREDAI, in response to ICR on the increase in cement prices said that´the housing sector accounts for 64 per cent of the total cement demand in India. We cannot be cornered by the cartel of cement manufacturers with a steep hike of approximately Rs 100/bag (50 kg) without any changes in the input cost, demand or government taxes. We vehemently oppose this unilateral move by the cement manufacturers and will take strong steps to oppose the action.´

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