Surging cement prices stall Vizag housing projects

A reported cartel of cement industries has turned into a bane for the entire construction industry in Vizianagaram, Srikakulam and other parts of the State. A cement bag, which was priced at around ?240 a couple of months ago is now being sold at ?350, putting a heavy burden on builders as well as homebuyers. The same cartel had reportedly engineered a steep hike in cement prices in 2014 just prior to the elections, with industry experts saying that the same situation is playing itself out once again. Normally, the government intervenes and makes cement companies reduce their prices after holding discussions with stakeholders. However, sources allege that the cement cartel is taking advantage of the Election Code, as builders are now unable to approach the government to lobby for a reduction in prices. Normally, summer is considered to be the peak season for the construction industry, but almost all new projects are now stalled with a sudden upward revision of material costs.