Credai alleges cartelisation by cement, steel firms by hiking rates by 40-50% despite lockdown
- Credai writes to housing and urban affairs minister Hardeep Singh Puri, seeking his intervention in the matter
- Across various states, there has been an increase of Rs100-250 per cement bag and about Rs2,000-2,500 per tonne of steel
"We would like to bring your attention to the cartelization by the cement and the steel manufacturers by imposing a sudden increase in their selling price," Credai said in the letter.
Across various states, there has been an increase of Rs100-250 per bag cement and about Rs2,000-2,500 per tonne of steel, it added.
During the past few weeks, there has been a sudden, steep increase in prices of essential raw materials such as cement and steel by 40-50% despite the nationwide lockdown.
The Centre has allowed construction work on sites where labourers are already available.
Given the current crisis faced by the real estate industry because of COVID-19 and even otherwise, such an abrupt increase in prices will be a bolt from the blue for the developers and will lead to increase in the construction costs and overall project cost, Credai said.
With thin margins, many developers might be constrained to stop construction work, leading to delays in completion of projects.
"Needless to say, this will have a cascading effect on the homebuyers also. Sir, this abrupt increase in the prices is highly unethical and amounts to unfair and restrictive trade practices," the letter said.
The association stressed on the need to control this price rise for smooth construction operations.
Source: Business Standard