CREDAI may file complain in CCI against ‘Illogical” cement price hike

By Accommodation Times News Services

Cement increaseUpset with the sudden hike in cement prices, developer’s apex body CREDAI has expressed their concern over the rising prices and has urged to bring down the cost. The cement companies have raised the cost by Rs. 80 to Rs. 100. CREDAI Chairman Mr. Lalit Kumar Jain, said the decision will create an adverse effect on the real estate and infrastructure sectors which are already reeling under crisis due to high input costs.

Mr. Jain, who is also the CMD of Mumbai-Pune developer Kumar Urban development Ltd (KUL) said CREDAI will plan to file a complaint with CCI against the “illogical” price hike as this creates pressure on developers to increase sale price of homes.

“Cement prices have increased from Rs.120 to Rs.320 over the past few years,” he said.

“Usually, monsoons bring down the number of constructions, so the prices too slip. This helps to average out the yearly pricing parameter which has been the norm. It is therefore the cement price hike is unjustified,” he said.

“The costs of inputs like steel, labor, funding, etc. have been on the rise, contributing to the increased cost of homes and we are fighting against this trend” Mr Jain said.

“Steel prices have gone up from Rs. 47,000 to Rs. 52,000 per ton, labor cost has increased by 20 per cent, building products like electrical, wood, paint and sanitary ware are up by 5 per cent. Thus, the construction cost will overall see a nearly 20 percent hike,” he explained.

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