Cement price up by Rs 70 per bag
A hike of Rs 50 per bag would increase construction cost by Rs 50 per sq. ft
By : DC Correspondent
Update: 2015-11-23 00:54 GMT
Hyderabad: Cement prices has shot up by Rs 70 per bag within two weeks, from Rs 250 till recently to Rs 320. Con-struction firms allege that a syndicate by cement firms is jacking up prices and want state government to regulate the prices.
“The price of cement was fluctuating from Rs 250 to Rs 320 since June 2014 but was stabilised at about Rs 250 for about five months. The prices started moving up all of a sudden over the last two weeks. There is no reason for this hike,” said Mr C. Shekar Reddy, former president of CREDAI.
Builders say a bag of cement is required to develop built-up area of 1 sq.ft. A hike of Rs 50 per bag would increase construction cost by Rs 50 per sq. ft.
“The price rise will affect property buyers from the middle and lower middle classes the most. Normally, there is a demand for flats ranging from 1,000 sq ft to 1,500 sq ft from these sections. These buyers have to shell out more money to purchase flats due to the increased cement prices,” said Mr B. Vijayanand, a builder.
“As many as 40 mega residential projects have been lined up in the West of the city. Projects are spread over 20 acres to 40 acres. Work has been stalled due to increasing cement prices," said Mr K. Kamalakar, a builder.
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