MADURAI: An urgent appeal was made to the Tamil Nadu State Government today to check and control the abnormal increase of cement and steel prices. Mr.N.Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, has issued an important press statement in Madurai on 21st June 2021, urging the government to take necessary steps to control the cement price and also steel rod prices.
RISE IN INPUT COSTS IS NOT GOOD:
“Before the second wave of COVID 19 curfew was imposed in Tamil Nadu, the price of a cement
bag was @ Rs.360. Similarly, the price of steel used for construction was between Rs. 60,000/-
and Rs. 62,000/- per tone . But now the Cement price has been increased to Rs. 500 per bag and
the steel rod price has gone up to Rs. 78,000 per tone. The sudden hike in prices has affected
construction contractors, who are unable to complete the projects within the estimated price.
The common people, who have begun building houses with all their savings, have also been hit
by the price rise,” TN Chamber president Mr.N.Jegatheesan has said in his press release issued from Madurai today- on 21st June 2021.
Stating that cement and steel are major construction materials, he pointed out that any increase in price would impact not only the housing sector but all infrastructure projects. Cement is one of the major construction
materials used in all segments of construction industry namely, housing (55% to 65%),
infrastructure (15-25%), commercial and industrial construction (10-15%). Steel price increase
has nothing to do with any domestic issue such as rise in input costs or change in government
policy. The unusual, uncommon increase in steel prices is mainly due to excessive export of
finished steel, thereby creating a shortage.
While the construction industry across the country has been hit hard by the Corona epidemic
for more than a year and millions of mercenaries who depend on the construction industry have
been affected by the curfew, the general public who have now begun to build houses and start
construction work, are shocked by the abnormal rise in the price of cement and steel rods, while
no construction has taken place anywhere. Cement and wire prices are selling at pre-curfew
prices, especially in neighbouring states including Karnataka, Andhra Pradesh and Telangana.
It creates a doubt that the Cement and Steel rod manufacturers in Tamilnadu had formed a
cartel, by reducing their production and artificially created a shortage and been increasing
prices to improve their profit margin.
APPEAL ON BEHALF OF TRADE AND INDUSTRY:
“Hence, on behalf of the trade and industry and especially for construction industry, we request
the government to appoint a high level enquiry on the reasons of abnormal price hike on
Cement and Steel rod when there is neither any corresponding demand from the construction
industry nor any substantial rise in input cost,” Mr.Jegatheesan said. A quick and prompt action by the government in the matter to cut unethical practices will not only save
the employment of millions of construction workers but also save the construction industry,
which includes affordable housing especially during the present COVID lock down period, the TN Chamber president said in the press release here today.
