Srikakulam: Construction sector yet to pickup momentum

Srikakulam: The State government announced relaxation for building construction works in rural areas even during lockdown period since the district is free from Coronavirus. It may be recalled that with an aim to provide respite to rural economy the government relaxed some restrictions from April 20. But due to exorbitant increase in the price of cement people are not interested to start construction work in rural areas.

Three months ago the price of the cement bag was Rs 290 and Rs 300 for all brands of cement including the KCP, UltraTech, Maha, Sagar, Priya and Vishnu and others. Now the price for each bag crossed Rs 450 and in remote areas it is Rs 470 and Rs 480 also. With this unprecedented increase in the cement price rural people worry over manifold increase in the investment for house construction.

In the wake of Coronavirus lockdown the cement transportation was affected and companies suffered huge loss. To cover the loss the companies directed their dealers to hike the cement price up to Rs 450 for each bag. The dealers sell it in turn to customers to Rs 470 and Rs 480 including their margin, transportation and workers' wages for loading and unloading.

As part of relaxation of restrictions from the lockdown, the sales of cement, iron and other hardware material is allowed. District collector J Nivas told The Hans India, 'We have given permission for one shop in each mandal for the sale of cement, iron from 6 am to 1 pm every day.' 

Noted cement and hardware business person in the district Maturu Sridhar said, 'The Cement companies instructed us to sell on bill at the rate of Rs 450 per bag and we have to collect our margin and workers charges on it.'

'Cement dealers need to sell each bag at least for Rs 460 and above at this juncture as companies increased the price,' cement and hardware dealers' association district president Baratam Kameswara Rao and secretary Magatapalli Nanaji explained to The Hans India.

'We stopped our apartment works due to hike of cement price to prevent increase of investment,' said joint owners of an apartment, G.Ch. Naidu, B. Srinu, K. Bhaskar Rao and D. Ramana Murthy of Srikakulam.