Hike in material costs hits construction sector

The construction sector is badly affected in the city with the increase in the prices of building material during the last three weeks.
The prices of cement, iron and hardware increased between 10 and 20 per cent creating a tough time to the builders. Middle class and upper middle class families which have started the construction of houses are facing an uphill task to complete the houses as per the schedule and in the stipulated budget.
Due to the power holiday declared by the APSPDCL, the cement and iron production declined in the recent weeks in the state. So, the demand gradually increased for cement. Summer is the peak season for the construction sector. Cement prices per bag increased by Rs 40 to Rs 50 in three weeks.
Last month, the 50 kg bag was sold for Rs 130 to Rs 140. Now, it has increased to Rs 190 to Rs 200 per bag. The price of iron also increased between Rs 5,000 and Rs 6,000 per tonne. Last month, one tonne of iron was sold at Rs 34,000 and later it shot up to Rs 39,500.
Labour charges, which consume the lion’s share in the construction sector, also increased during the last one month. A mason used to get Rs 230 per day. Now, the daily earnings increased to Rs 280 per day while the helper’s daily income rose from Rs 150 per day to Rs 200. Metal rates are also gradually increasing.
The construction industry has been struggling for the last three years due to economic recession.
Nearly 700 apartments built in rec-ent years in the city are yet to be sold due to the meltdown. Besides, thousands of skilled and unskilled workers will be left without work if the construction works slow down in the city.
K. Nageswara Rao, a builder, said the prices of building material is likely to come down after summer as construction works will slow down in the rainy season and power supply will improve to the industries.