Builders threaten construction holiday as cement prices spiral

The Andhra Pradesh Builders' Association has threatened to declare construction holiday if the spiralling cement prices in the state are not brought down to normal levels in the next ten days.

The present price situation is the result of cartelisation by the AP cement companies through cutting down production and controlled despatches, the association alleged. While it was Rs 85 per bag in last August, now it is hovering over Rs 155.

The chairman and president of the association, K Ravinder Reddy and PVSN Murthy respectively, appealed to the state government to enforce the MRTP Act on cement companies to bring down the prices.

"We will wait for another one week to see the response. Then we will represent to the government for specific action. If that doesn't help, the association members will sit together and decide on the future course of action, besides declaring a construction-holiday along with general public whoever engaged in construction activity to build pressure on the cement companies," the association leaders said.

According to the AP Builders Association, the 'abnormal' price hike of cement companies may seriously affect the labour employment in the construction industry, besides the construction activity itself, as the cement cost alone constituted 30 per cent of the civil construction.

Ravinder Reddy and Murthy replied to a question that Rs 105 per bag was a viable price for any cement company in the state, as around 40-45 per cent of the entire cement production of India came from Andhra.

"We are not asking for under pricing. It is clear that the present prices are not driven by any external conditions, as the cartelisation of big and small cement companies is now a open-secret. We don't mind even if the prices are at Rs 140-150. But this is too much," Ravinder Reddy said.

The government will also be an equal sufferer since a lot of construction activity had been initiated in the government sector, inclusing weaker section housing and sanitation segments, they said.