Construction industry, which is struggling for the last three years due to economic recession, will face another problem with the rise of cement price during the last one week.
Noted brands increased the price by Rs 30 per each 50 kg bag. Till last week, 50 kg bag was sold between Rs 140 to Rs 160. Now, the price rose to Rs 180 to Rs 190 per bag.
The hike of cement price is attributed to the increase of raw material prices. Price of coal, fly ash and chemicals shot up. Consequently, the cement companies hiked the price of cement.
The price of iron used for construction industry also rose from Rs 32, 000 to Rs 33,000 per tonne. Sand and brick prices generally shoot up during the rainy season. Brick manufacturing industry has been badly affected due to incessant rains in the district for the last one month.
Trucks also do not venture into the Krishna river to shift sand. These factors led to the rise of brick and sand prices in recent days.
The realtors feel that all these factors would lead to increase the cost of production. A realtor said, “We will collect new price for the apartment flats with the increase of cement, iron, bricks and sand prices.”
Nearly 150 companies and individuals are engaged in construction activity in the city. With the real estate boom reaching the peak four years ago, several hundreds of apartments were built in and around the city. But, due to recession, more than 700 flats remained unsold for nearly two years.
With the change in the economic scenario in the country, the realtors are gradually trying to recover from the loss.
At this crucial juncture, the prices of building material increased. Middle class and upper middle class families who began construction of houses will suffer due to the hike of building material.
A cement trader said, “Generally cement prices shoot up in the summer due to power cut, but the cement manufacturers increased the prices due to an increase of raw material price.”
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