Artificial scarcity jacks up sand prices

- CREDAI Vizag chapter chief K Ramakrishna Rao alleges nexus between middlemen and field-level officials scuttled sand supply
- The price of a truck load has shot up to Rs 25,000 from Rs 11,000 marring construction activity

Visakhapatnam: Chairman of CREDAI Vizag Chapter K Ramakrishna Rao alleged that nexus between unscrupulous middlemen and field level officials badly hit the unique decision of the State government to supply sand free of cost. “It has resulted in severe shortage of sand again,” he remarked.

Speaking to reporters here on Monday, Ramakrishna Rao charged that the black marketing of sand has again raised its ugly head and a truck load of sand (five units of sand) was now being sold at an exorbitant rate.

He recalled that the struggle against shortage of sand in 2015 when it shot up to Rs 45,000 a truck load, has forced the State government to supply sand free of cost. He said the decision has not only brought down the price to about Rs 11,000 a truck load, it also increased the government revenue considerably.

Stating that, the truck load price has shot up to about Rs 25,000, he questioned why the price has shot up again, when there was enough supply of sand at all the notified sand reaches. He alleged that the middlemen and the filed level officials were creating artificial scarcity as the Vizag district has no river beds and to depend upon neighbouring Srikakulam and East Godavari districts.

He appealed to the government to take corrective measures failing which the situation would worsen and hampers the construction activity throwing a large number of skilled and unskilled workers out of employment.

Vizag Chapter president G V V S Narayana, vice president P Koteswara Rao and honorary secretary B Srinivasa Rao pointed out that CREDAI wanted uninterrupted supply sand and not at free of cost. They threatened that the CREDAI would be forced to stop the entire construction activity, if the government fails to take action against the nexus of middlemen and the field staff.

It was also proposed to form a Joint Action Committee to wage a struggle to address the issue and to overcome the artificial scarcity of sand, if the government fails to initiate immediate action, they added.

Referring to the demonetisation impact on the construction activity, the office bearers of CREDAI asserted that the cost of apartment would not come down but would go up substantially attributing the cost factor to other inputs like cement and steel. The property expo originally proposed to be held in December was re-scheduled and will be held from March 3 at the AU Engineering College Grounds, they added.