Builders’ agitation fails to dampen retail cement sales

Hyderabad: The unprecedented step taken by builders and real estate developers in AP and Telangana to stop cement purchase over the recent abnormal price hike, has entered third day on Monday, but it has been business as usual for the cement dealers.

“Our sales have been normal for the past three days. We heard about the strike by the builders and developers, but it has not affected our sales till now. On an average, we sell 250 bags per day and our sales have been on similar level for the past three days,” Srinivas Rao of Sri Raja Rajeshwari Stones, Trimulgherry, told The Hans India.

According to him, construction work has been going on as usual and people are buying cement. “Most of the builders have stocks for one week or more. So, their works will not also be impacted adversely,” he maintained.

Several real estate bodies including Credai had formed a Joint Action Committee (JAC) to fight against steep hike of cement prices in AP and Telangana. The JAC alleged that cement companies formed a cartel and increased prices by over Rs 100 to Rs 310 per bag from around Rs 190 a few weeks ago. Describing the hike that pushed up construction cost by Rs 200 per sft as unethical and unwarranted, the JAC, which represents 2,000 developers and 1,000 builders across AP and Telangana, asked its members to stop purchase of cement from July 5 to 12 in protest against the hike. However, their agitation has not adversely impacted construction activity till now as most of the builders have cements stocks for a week. The JAC also called upon people to join it in the agitation and support the cause. However, response from common people and small builders has been lukewarm.

Another cement dealer also confirmed this and said there was no fall in sales in recent days despite the builders stopping purchase of cement. “Our regular customers and sub-dealers are lifting stock as in the past. Even some builders have also purchased cement from our shop in the past two days,” owner of Moula Ali-based Jagadamba Syndicate, said. He however refused to disclose his name.

Meanwhile, N Jaiveer Reddy, President, Credai Hyderabad, said all the members of JAC, stopped purchase of cement. “Some of our members are using the existing cement stocks for construction. However, we will stop entire construction activity from July 12 if cement companies fails to reduce the prices by that time,” he said. Reddy further stated that the JAC had not received any communication from cement companies on the contentious issue. “We are ready to discuss the issue and reach an amicable solution if cement companies forward for talks. It is OK for us if cement is priced around Rs 240. The current price of around Rs 310 is unacceptable for us,” he said.