Cement manufacturers artificially hike prices by up to 40%: CREDAI

The Confederation of Real Estate Developers’ Association of India, better known as CREDAI, has alleged that cement makers have “artificially” raised prices by up to 40 per cent in the last two months across the country which could lead to an increase in construction cost of projects.

“Cement prices have witnessed a sudden jump of 20 per cent to 40 per cent in a short span of 2 months across India, while there are reports that cost of production of cement has remained constant with government according various subsidies to cement manufacturers like cost of power, coal etc,” said CREDAI in a statement.
The association observed that while the Government has laid emphasis on the housing industry and recognised its need, especially the affordable housing segment by awarding it infrastructure status, this unjust price rise may increase the construction cost which will have to be passed on to the consumers.
“CREDAI has regularly requested the Government of India for a swift intervention to put an end to the collusive practices in the industry and rein in the price hikes so that they may contribute to the Government goal of ‘Housing for All’ by 2022,” it adds.

The association said it has received numerous complaints and protest mails from its members across India about cement companies jacking up prices. “We are pained by the complaints of unjustifiable and collusive jacking up of cement prices by cement manufacturers across India which have a potential to create unnecessary roadblocks and impediments in achieving the goals of ‘Housing For All’ by 2022 envisioned by our PM,” said Jaxay Shah, President, CREDAI.

He adds, “On earlier occasions too the Competition Control of India has pulled up cement manufacturers for collusive pricing and imposed hefty fines on them. It is estimated that Rs 100/- rise in cement per bag results in increase in construction cost by at least Rs 50/- per square foot in the entire project.”
CREDAI is in talks with other ‘affected’ parties like Builder’s Association of India and National Highway Builders Federation for possible joint action against this artificial price rise, it said.

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