Construction sector plunges into severe crisis as prices rise

Construction sector plunges into severe crisis as prices rise

Kochi: The construction sector is in severe crisis as prices of everything, including wire and cement, are rocketing. Prices of M sand, red sandstone, cement blocks and hollow bricks shot up, plunging the construction sector into a severe crisis. According to industry insiders, construction costs have risen by more than 20 percent in the past few days.

The biggest increase is in the price of wire. The price has gone up by Rs 35 per kg in two weeks, i.e., 2000 per quintal of wire. Traders said sales fell as prices rose. At the beginning of the Covid outbreak, the price of wire was Rs 45 per kg. It gradually rose to Rs.65.

The price of cement per bag rose by Rs 60, adding to the vows of the construction sector. During the last one week, the price rose between Rs 40-50 per bag. A bag of cement from top notch companies now costs Rs 450. Price of cement from lesser-known brands which used to be Rs 350, is now Rs 380.

The price of red sandstone and granite which also rose, is around Rs 50-60. The price of M sand (artificial sand) is also around Rs.500 per 100 feet. Prices vary locally depending on the distance of delivery.

Companies explained that the increase in prices was due to the slack in availability of raw materials following the Russian-Ukraine war. Production has also dropped significantly. After the third wave of Covid, price rises pursued recovery in the manufacturing sector.

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