High cement prices hit construction works

Spiralling cement prices for the last one month have stalled nearly 30 % of the construction activities in Coimbatore, according to members of the joint action committee of construction sector.

1. Chinnaswamy, chairman of the Builders’ Association of India, Coimbatore chapter, along with representatives of six associations related to the construction sector, told presspersons here on Saturday that the price of one bag of cement was ?270 a month ago and the retail prices had touched ?410 a bag. This had impacted construction costs and stalled on-going projects, even smaller, independent house constructions. Portland cement used in readymix concrete was not available in the retail market.

The construction sector has not seen a spurt in demand and yet there is shortage in availability and prices are increasing. The cement manufacturers are not giving any specific reason for the hike in prices. With escalation in project costs, the cost of construction for residential projects will increase. Builders and developers have no option but to increase the price. Though there is no ban on import of cement, it is not practical, he said.