Builders seek government intervention as steel prices surge
Steel

Builders seek government intervention as steel prices surge

Builders in Kochi have sought the centre’s interference due to the significant increase in the prices of steel and cement in India. According to them, the unchecked rising in prices will put a huge burden on the buyers.

According to the sources, in India, steel prices have increased to Rs 20,000 per tonne since last year and increased Rs 6,000 per tonne more last week.

The South India Cement Manufacturers Association said that the cement prices across the country are to be increased considerably. It suggested multiple reasons for the price hike, including unavailability of pet coke, unchecked price hike of imported coal may have caused the price hike.

The estimated increase in the production cost will be at least Rs 60 per bag of cement.

Krishna Srivastava, General Secretary of the South India Cement Manufacturers Association, said that the last few months had witnessed an unprecedented increase in the imported cost of coal and pet coke. The availability of pet coke has also decreased.

He added that the shortage of vessels, unavailability of pet coke, and high prices of coal would further increase the cement price.

He said that the increase in fuel prices would make the situation worse, making it more difficult to forecast the production volumes and capacities of the utilities.

Besides, builders in Kochi are disturbed due to the increasing input prices and their impact on real estate in Kerala.

Ravi Jacob, President of the Confederation of Real Estate Developers Associations of India (Credai)-Kochi, told the media that the rising prices of steel and cement would increase the construction cost to Rs 1,000 per sq ft, adversely affecting the consumers' needs.

He said that the price hike would leave the construction industry in a deep crisis. After the Covid-19 pandemic, the real estate sector was slowly recovering. The increasing price will put a burden on the consumers. The government's scheme of affordable housing will negatively affect the consumers with the price hike of construction materials.

Image Source

Also read: Indian Steel Association writes to PMO defending steel price hike

Builders in Kochi have sought the centre’s interference due to the significant increase in the prices of steel and cement in India. According to them, the unchecked rising in prices will put a huge burden on the buyers. According to the sources, in India, steel prices have increased to Rs 20,000 per tonne since last year and increased Rs 6,000 per tonne more last week. The South India Cement Manufacturers Association said that the cement prices across the country are to be increased considerably. It suggested multiple reasons for the price hike, including unavailability of pet coke, unchecked price hike of imported coal may have caused the price hike. The estimated increase in the production cost will be at least Rs 60 per bag of cement. Krishna Srivastava, General Secretary of the South India Cement Manufacturers Association, said that the last few months had witnessed an unprecedented increase in the imported cost of coal and pet coke. The availability of pet coke has also decreased. He added that the shortage of vessels, unavailability of pet coke, and high prices of coal would further increase the cement price. He said that the increase in fuel prices would make the situation worse, making it more difficult to forecast the production volumes and capacities of the utilities. Besides, builders in Kochi are disturbed due to the increasing input prices and their impact on real estate in Kerala. Ravi Jacob, President of the Confederation of Real Estate Developers Associations of India (Credai)-Kochi, told the media that the rising prices of steel and cement would increase the construction cost to Rs 1,000 per sq ft, adversely affecting the consumers' needs. He said that the price hike would leave the construction industry in a deep crisis. After the Covid-19 pandemic, the real estate sector was slowly recovering. The increasing price will put a burden on the consumers. The government's scheme of affordable housing will negatively affect the consumers with the price hike of construction materials. Image Source Also read: Indian Steel Association writes to PMO defending steel price hike

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