MUMBAI: With prices of cement suddenly going sky high, developers apex body CREDAI Chairman Lalit Kumar Jain, expressed his concern and said he believes a cement cartel is active. Jain, who is also the CMD of Mumbai-Pune developer Kumar Urban development Ltd (KUL) said CREDAI will consider to file a complaint with CCI against the continuous price hike as this creates pressure on developers to increase sale price of homes.
“Cement prices have increased from Rs.210 to Rs.275 over the past few days, and indications are that they will go up to Rs.325 per bag in the near future,” he said.
“A rise of Rs.50 per cement bag leads to increase in cost of construction cost per sq ft by approximately Rs.20–Rs 25. We are concerned about this sudden price rise,” he said pointed out that sale prices will increase and customers may have to pay increased prices as costs of all inputs like labour and building material have gone several notches up. In these market conditions increase in input cost will harm interest of business and consumers.
He explained that it is the common man who ultimately bears the burden of such price hikes. Considering that buyer sentiment is currently low, the cement price rise defies logic.
CREDAI will consider to go to CCI to seek intervention against cartel of cement manufacturers.