Higher cement prices worry builders

Builders and contractors here have expressed concern over the increase in cement prices in the last few days. According to K. Viswanathan, chairman of the Taxation Committee of Builders’ Association of India, the cost of one bag of cement (50 kg) is up by nearly ?70 for bulk purchases in Coimbatore and ?50 a bag for retail purchases. Though there is no actual shortage, because of the price hike, there is a shortage-like situation. Further, the Ready Mix Concrete suppliers have also increased price. Cement is the main material they use. The price of a cubic metre of RMC used to be ?4,000. Now, it is up by ?500 - ?600, he said. The costs of large-scale projects will escalate with higher RMC and cement prices. Construction activity is just picking up and higher input costs, especially for cement, will affect the sector. In the case of time-bound projects, the contractors will have to bear the additional cost and government projects will also be affected. The Builders’ Association of India (BAI) plans to make mass representations and organise State-level protests.