14 , May , 2020
CHENNAI: It looks like that bad times are there to stay for real estate industry. Already limping with the lockdown and shortage of workers now there is a new setback for developers. The prices of cement bag have shoot up to Rs. 100 per bag.
The sudden increase in the prices have been opposed by the developers. The brands have hiked the price of 53 grade cement bags, each weighing 50kg and containing have Portland Pozzolana cement (PPC), by Rs 60 a bag. Regular brands have increased prices by Rs 100. The rate of Ordinary Portland Cement (OPC) of regular brands jumped to Rs 60. The current price for premium brand PPC ranges from Rs 365 to Rs 395, while OPC is sold for Rs 375 to Rs 410 a bag.
Cement dealers are in shock and uncertainty. People who have booked the cement before lockdown and have made the payments will now not give the increased amount, thus making clear losses for the dealers.
The move has reignited support for the long pending demand for a government-led authority to regulate cement rates. Small developers and those building independent houses would be worst hit
Prior to this cement prices were revised in February last year, when rates for bulk purchasers was also revised by Rs. 70. Confederation of Real Estate Developers’ Associations of India (CREDAI) Tamil Nadu chapter president elect Suresh Krishn said the cartelisation of cement is a blow for the sector.
“This will increase the cost of construction. Increasing the rates by Rs 100 per bag at a time when the construction sector is in doldrums was unacceptable and we want the government's intervention to rollback the prices,” he said.
