Builders to import cement from China, South Korea

Vijayawada: Vexed with steep hike of cement prices in Andhra Pradesh and artificial demand created by cement manufacturers, the builders in capital region (CR)d of Vijayawada and Guntur have decided to import cement from China, South Korea, Bangladesh for continuation of construction activity, which has been stalled for more than two months due to abnormal increase of cement prices for two months in AP.

Highlights:

• Abnormal hike in cement prices is forcing realtors to opt for foreign cement
• Average use of cement per month is 30,000 tonnes in the capital region
• The price of 50-kg bag of cement has gone up to Rs 400 during the last 2 months
• While the price of a bag is Rs 250 in China, South Korea and Bangladesh

The Joint Action Committee of three important builders associations, The Andhra Pradesh Real Estate Developers Association (APREDA), Capital Region Builders Association (CRBA) and Confederation of Real Estate Developers Association (CREDAI), has made several representations to the state government to intervene and take measures to bring down the cement prices. But, there is no effect on the cement prices.

Average use of cement is 30,000 tonnes in a month in the capital region of Vijayawada and Guntur. The builders are spending hundreds of crores of rupees to purchase cement every month. Now, the realtors say they could not cope up with the soaring cement prices. Cement prices in China, South Korea and Bangladesh are far less compared to Andhra Pradesh. A 50-kg bag of cement is available for less than Rs 250 in these countries. In Andhra Pradesh, the 50 kg cement bag price reached Rs 400 during the last two months.

The price of each bag ranged between Rs 250 and Rs 280 in January and February 2017. The realtors have firmly decided to import cement from other countries as they are vexed with the fluctuations of cement prices every year.The realtors are alleging that the cement companies have created artificial scarcity and selling the cement at abnormal price in the market. Builders are already suffering due to increasing prices of iron, building materials, hardware, sanitary ware, labour charges, taxes, land prices etc.In this backdrop, the builders are not able to spend more on cement.

The prices of cement increased between Rs 70 and Rs 100 per bag during the last three months forcing the realtors to stop the construction activity.‘We have no option but to import cement from other countries like China, South Korea, Bangladesh and Sri Lanka,” said V Subba Rao, president of the Capital Region Builders Association (CRBA). He said about 600 builders are in the capital region of Krishna and Guntur districts. He said the livelihood of lakhs of workers will be affected if the construction activity is stalled for a long time.

The builders associations are deputing a delegation to China, Bangladesh, Sri Lanka and South Korea to study and prepare the ground to import cement.Cement will be imported to Krishnapatnam port and later will be supplied by road to the capital region. High quality of cement is produced in China and South Korea at lower price than Andhra Pradesh, said Gadde Rajling, another realtor.

He said cement manufactured in China and South Korea is used for construction of 30 and 40-floor buildings to ensure quality of the structures, he added.“Not only the builders but also the common people, are suffering due to abnormal increase of price,” said another builder A Siva Reddy.He demanded that the government should take measures to check the prices of cement to avoid imports from other countries.

By Md Ameen