May 11, 2020: Realtors’ body Credai said that cement and steel rates have increased monumentally by 40-50 per cent in last few weeks despite the lockdown. It has alleged that this surge is due to price cartelisation and unfair trade practices by the manufacturers.
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The fraternity has written to Minister of Housing and Urban Affairs Hardeep Singh Puri requesting his mediation in the matter.
“We would like to bring your attention to the cartelization by the cement and the steel manufacturers by imposing a sudden increase in their selling price,” Credai said in the letter.
Read: Housing ministry suggests states to follow Maha; reduce stamp duty on property transactions
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There has been an increase of Rs 100-250 per bag cement and about Rs 2,000-2,500 per tonne of steel across states, Credai said.
The Centre has permitted construction work on sites where labourers are already available.
Given the current crisis faced by the real estate industry because of the pandemic, such an unexpected increase in prices will suffer a further blow to the developers and will lead to increase in the construction costs and overall project cost, according to Credai.
It would press many developers to stop construction work, which would further delay the completion of projects.
“Needless to say, this will have a cascading effect on the homebuyers also. Sir, this abrupt increase in the prices is highly unethical and amounts to unfair and restrictive trade practices,” the letter said.
The association emphasized on the need to control this price rise for smooth construction operations.
“We shall be grateful if the issue of price rise of cement, steel, and other raw materials can be taken up by you with the relevant ministries at the earliest,” Credai urged the housing minister.
Well it was bound to happen due to a sudden pause in trading and then sudden demand when the lock down is partially lifted. This article showcases a great idea of capping the price to stop unfair trade practices.