Cement manufacturers in south India have denied that cartelisation is leading to a spike in the prices of cement. They alleged that developers’ bodies are spreading false information.
Briefing reporters in Chennai on Monday, South India Cement Manufacturers Association (SICMA) president N Srinivasan said cement constituted just 2% of the total construction cost, which could not have any impact on pushing the construction cost.
“In fact, builders get cement at lesser prices. Even if cement price increases, it will raise the construction cost only by 1%,” he said.
According to SICMA, cement rates are market-driven and available for prices ranging from Rs 270 to Rs 420 per bag with each bag weighing 50 kg in the retail market.
Various developers’ bodies have been charging that the cement prices have been jacked up at least by Rs 100 per bag which led to a rise in construction cost.