Constructions sector under worry due to increased cement price
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The National Real Estate Development Council (NAREDCO) says that the construction costs for the real estate developers have been raised up by 15-20% in the last three months because of the sheer rise in the cement prices. The cement manufacturers have increased the price of the cement for Rs. 100 per bag in the last three months and they also say that it is also creating a lack of cement in the market which is leading the projects to delay and it will definitely have an collision on our costs says the representative of DLF.
The president of NAREDCO Navin Raheja said that, the cement companies has created a alliance and has hike the prices saying that the cost of one of their important inputs coal has been raised. Since from August the cement prices are going up and up though the coal prices started to rise up from mid-October. The industry body has now registered formal complaint with the Competition Commission of India against the cement manufacturers.
In August the cement bag prices was raised from Rs. 180 to Rs. 280 and also there is a shortage of the cement in the construction market because the cement manufacturers are not giving any credit line for the suppliers. And this has led to huge problems in the market and it has also affected to the projects which is been delaying because of the cement scarcity and the fancy prices.
Source: NIMMA BENGALURU
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