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Credai Hyderabad forms JAC to seek rollback of cement price hike in state

Credai Hyderabad

Credai Hyderabad, along with all its chapters, in association with the Telangana Real Estate Developers’ Association, Builders Association of India, Telangana Builders Federation and the Telangana Developers Association has formed a joint action committee to oppose the steep hike in cement prices by cement manufacturers.

According to a press release, JAC, represented by more than 600-strong developer community and more 1,000 small, medium and mega contractors has demanded the cement manufacturers to roll back the “unjustified steep hike” immediately. The increase, JAC said, will act as a negative catalyst and increase home prices impacting the delivery to homebuyers.

The release said Andhra Pradesh and Telangana, with 20 manufacturers of cement, contribute about 26 per cent of the total installed cement capacity of the country. The annual consumption of cement in the two states is approx. 22-24 million tonnes. The present political and economic scenario and the steady demand for cement do not warrant the need for such hike in the price of cement, added the release.

S Ram Reddy, President of Credai Hyderabad & Chairman, JAC, said, “The housing sector accounts for a significant consumption of the total cement demand in India. We cannot be cornered by the cartel of cement manufacturers with a steep hike of approximately 60 per cent without any changes in the input cost, demand or Government taxes.”

Reddy said the focus of the developers in the region is on affordable housing. “The steep increase in the price of cement in Telangana state will add to the cost of housing and thereby increasing the burden on all stakeholders. Considering the current low prices for property, this increased cost will create negative growth and escalate artificial pricing. To avoid such a situation, we are insisting on an immediate roll back of the price hike”, he said.