Artificial rise in cement prices to affect home prices
Builders’ body Confederation of Real Estate Developers Associations of India (CREDAI) has raised objections towards a sudden rise in cement prices by up to 40% in the last 2 months, saying such move will increase home prices and impact delivery of projects.
“CREDAI has received numerous complaints and protest mails from its members across India about cement companies hugely jacking up prices of cement thus negatively affecting deliverability of affordable projects,” said Jaxay Shah, president, CREDAI.
The association estimates cement prices to have increased by 20% to 40% in the last 2 months across India, with the cost of production of cement remaining constant.
“This unjust price rise may increase the construction cost which will have to be passed on to the consumers,” he added.
It is also in talks with Builder’s Association of India as well as National Highway Builder’s Federation for possible joint action against this artificial price rise.
The Competition Commission of India (CCI) in January last year asked 11 cement companies and industry body Cement Manufacturers Association (CMA) to pay a fine of Rs 6,714 crore for alleged cartelisation, standing by its previous orders issued in 2012, that the competition watchdog was asked to reconsider by the Competition Appellate Tribunal last December.