Credai to file complaint with CCI against cement price rise

Criticising steep increase in the cement prices, apex realtors' body Credai has decided to file a complaint with the Competition Commission of India (CCI) against this hike.

"The sudden increase in price of cement will have an adverse impact on real estate and infrastructure sectors which are already reeling under crisis due to high input cost, developers," Confederation of Real Estate Developers' Association of India (Credai) Chairman Lalit Kumar Jain said in a statement.

He said the association will file a complaint with the CCI against the 'illogical' price hike, which creates pressure on developers to increase sale price of homes.

There has been a steep increase in cement prices from Rs 120 to Rs 320 over the past few years, Credai said.

"Usually, monsoons bring down the number of constructions, so the prices too slip. This helps to average out the yearly pricing parameter which has been the norm. It is therefore the cement price hike is unjustified," he said.

The costs of inputs like steel, labour, funding have been on the rise, which is expected to see a nearly 20% hike contributing to the increased cost of homes, which realtors are fighting against, Jain said, adding, "The construction cost will overall see a nearly 20% hike."

While steel prices that have risen from Rs 47,000 to Rs 52,000 per tonne, labour cost has increased by 20% and building products like electrical, wood, paint and sanitary ware by 5%, he said.