Steel prices fall by 10 per cent, while cement prices rise

Aurangabad, Feb 10:

Rising steel and cement prices pose a major challenge to builders and industrialists. Various industrial associations and Credai had written a letter to the central government to control the hike. After this, some measures were taken in the budget to reduce steel prices. This has shown good results, and steel prices have come down from Rs 60 per kg to Rs 51 per kg after the budget. However, as these rates are still 40 per cent expensive, this is a minor relief.

Cement and steel producing companies announced a price hike after the Maharashtra government announced a reduction in stamp duty and premium charges to alleviate the construction industry in the wake of corona disease. As a result, builders and industrialists faced a lot of financial difficulties. Many associations also raised the issue at the central level. Cement prices have risen by more than 23 per cent and iron by more than 50 per cent. In January-February last year, a 50 kg bag of cement cost Rs 230. At present, it is around Rs 350 to Rs 400 per kg. Rising demand for construction material is being taken advantage of, and prices are being hiked every month. At the beginning of the year 2020, the price of iron was Rs 38,000 to Rs 40,000 per tonne. However, it reached Rs 60,000 per tonne.

Need to reduce GST

Although the price of steel has reduced from Rs 60 to Rs 51 as provided in the budget, it is still 40 per cent higher. On the other hand, Cement, which is the most important component in construction, is kept in 28 per cent GST slabs. This tax needs to be reduced. There will be no relief till the GST is reduced. This is essential to make affordable housing available to the people, said Credai members.