Rising prices of cement and iron cripples the construction budget

Aurangabad, May 16:

Inflation is hitting ordinary consumers one after another. Inflation is so high that for the first time since independence, the price of cement has gone up to Rs 410 per kg and iron to Rs 62 per kg. This has crippled the builder's budget.

The cost of cement and iron is high in construction. Without it, concrete construction cannot be done. The monopoly of the cement manufacturing company continues. As a result, cement prices have been rising steadily since last January, reaching Rs 410 per bag. Earlier, in September 2020, the price of cement had touched Rs 400. The rise in prices of steel bars along with cement has added fuel to the construction budget crisis. Iron bar prices started rising from last February. In the last two and a half months, the price has gone up by Rs 15 to Rs 17 and now it is between Rs 60 and Rs 62 per kg. Officials of the company said that the rise in raw material prices has pushed up the prices of cement and iron. In particular, shops are closed due to lockdown, but prices are rising. The distributor said they had no idea what the situation would be like with the sudden increase in demand after the lockdown.

Corrugated sheets become expensive

There are three companies left in the country producing corrugated iron sheets. Earlier these sheets used to sell for Rs 75 to 80. But for the first time in the last 50 years, the price of corrugated sheet has gone up by Rs 30-35 and is being sold at Rs 110-120 per kg. According to the distributor Rajkumar Pandey, the price has gone up by around Rs 200 to Rs 250 per sheet.

Cost increased by Rs 40,000 per 1,000 square feet

A 1,000 square foot construction requires about 500 bags of cement. When cement was sold at Rs 330 per kg in January, it cost Rs 1.65 lakh per 500 bags. Now with the price of Rs 410, the cost has increased up to Rs 2.5 lakh that is nearly 40,000 excess that prior requirement. Similarly price of pipes, doors, windows and other materials have also increased.

Demand for reduction of GST by 10 per cent

Cement is subject to 28 per cent GST. However, CREDAI has been demanding a reduction of 10 per cent for the last four years. However, the central government has not yet taken the demand seriously. This can have an impact on an affordable housing projects.