The unprecedented rise of cement prices in the state has had a cascading effect in the real-estate and the construction industry with the prices of cement rising by Rs 50 in the past one week. The sudden hike owing to the high demand for coal and other raw materials are cited for the price rise in cement.

The price of cement soared from Rs 410 to Rs 460 for a sack on Thursday. In a span of one week, there was an increase of Rs 50 in the prices that has come as a double whammy to the real estate and housing sectors that was looking to revive after the aftershocks of two lock-downs that has stunted the growth of the construction industry.

“This decision to increase the prices without any intimation looks suspicious as we strongly feel that this was done with a malicious intention to support few corporate. We urge the state government to intervene in the matter urgently and ensure that the industry which has already faced a series of setbacks for the past two years gets a breather”, said SN Raghuchandran Nair, president of Trivandrum Chamber of Commerce and Industry (TCCI).

The traders say that the information about the price hike was shared verbally and not through an SMS. A meeting of the Confederation of Real Estate Developers’ Associations of India (CREDAI) Kochi chapter urged the government to intervene and control the spiraling prices of construction materials including cement, steel and aggregates.

“The rate of cement has doubled during the past one year and the price of steel has gone up from Rs 47 per kg to Rs 90 per kg. The recent Supreme Court order on minimum distance of stone quarries from residential areas will lead to acute shortage of aggregates”, said Ravi Jacob, president of Confederation of Real Estate Developers Association of India (CREDAI).

Meanwhile, the South Indian Cement Manufacturers Association (SICMA) informed that the shortage of coal has led to an increase in production cost and the price of cement may go up by a minimum of Rs 60 per bag.