NAREDCO seeks govt intervention to check rising prices of raw materials
Cement

NAREDCO seeks govt intervention to check rising prices of raw materials

Real estate body National Real Estate Development Council (NAREDCO) urged DS Mishra, housing and concrete affairs secretary, to check the increasing prices of essential raw materials, especially metal and cement, affecting development timelines.

Industry members stated prices of necessary raw materials such as cement, metal, and bitumen increased considerably within the final 12 months, creating difficulties for many sectors, mainly infrastructure and property. Nonetheless, both these sectors are reeling from the effect of the pandemic and the resulting lockdowns.

NAREDCO told the media that the construction costs have increased over the last year with raw materials, especially steel, aluminium, copper, and cement. Industry officials mentioned costs of various grades of the metal have increased within 60-100% between July 2020 and May 2021.

In July 2020, the scorching rolled coil was rated at Rs 36,500 a tonne, and following the hike in May 2021, the cost of the scorching rolled coil rose to Rs 72,000 per tonne.

Similarly, cement costs increased 50-70% from 2020 to 2021. At present, the retail price of cement is Rs 420 per bag, whereas it was Rs 280 in FY20. The price is expected to increase in the coming months.

NAREDCO also mentioned that exports of metals could be banned for two years till the problem of excessive prices and availability in markets resolve. It is beneficial that costs of metal and cement are allotted till the provide is restored.

It further added that the import duty of steel should be decreased from 7.5% to zero for two years, and the use of imported cement should be permitted. However, Mishra ensured the builders that the ministry would examine these points and discuss them with the ministries involved.

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Also read: Pipe makers body seeks govt intervention to regulate soaring steel prices

Also read: NAREDCO seeks extension from UP RERA to complete real estate projects

Real estate body National Real Estate Development Council (NAREDCO) urged DS Mishra, housing and concrete affairs secretary, to check the increasing prices of essential raw materials, especially metal and cement, affecting development timelines. Industry members stated prices of necessary raw materials such as cement, metal, and bitumen increased considerably within the final 12 months, creating difficulties for many sectors, mainly infrastructure and property. Nonetheless, both these sectors are reeling from the effect of the pandemic and the resulting lockdowns. NAREDCO told the media that the construction costs have increased over the last year with raw materials, especially steel, aluminium, copper, and cement. Industry officials mentioned costs of various grades of the metal have increased within 60-100% between July 2020 and May 2021. In July 2020, the scorching rolled coil was rated at Rs 36,500 a tonne, and following the hike in May 2021, the cost of the scorching rolled coil rose to Rs 72,000 per tonne. Similarly, cement costs increased 50-70% from 2020 to 2021. At present, the retail price of cement is Rs 420 per bag, whereas it was Rs 280 in FY20. The price is expected to increase in the coming months. NAREDCO also mentioned that exports of metals could be banned for two years till the problem of excessive prices and availability in markets resolve. It is beneficial that costs of metal and cement are allotted till the provide is restored. It further added that the import duty of steel should be decreased from 7.5% to zero for two years, and the use of imported cement should be permitted. However, Mishra ensured the builders that the ministry would examine these points and discuss them with the ministries involved. Image SourceAlso read: Pipe makers body seeks govt intervention to regulate soaring steel prices Also read: NAREDCO seeks extension from UP RERA to complete real estate projects

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