Construction sector in Kerala faces crisis amid skyrocketing material prices

PALAKKAD: A bag of cement now costs up to Rs 480, while TMT steel is priced at Rs 85 per kg. With construction material prices rising sharply, the construction sector in Kerala is facing growing pressure.

The situation has been made worse by Tamil Nadu's decision to restrict the supply of construction materials to Kerala. The restriction was imposed in the name of domestic development in Tamil Nadu and began at the end of July. It is expected to continue for three months. As a result, the supply of rock, M-sand, metal, crushed stone and road construction materials from Tamil Nadu to Kerala has stopped.

Cement prices have increased by Rs 10 to Rs 15 for different brands within a week. The wholesale price of Malabar Cement is Rs 300 per bag, while it reaches around Rs 350 in the retail market. Its price was increased by Rs 5 recently. Private brands such as Ultratech, Shankar and Ramco are priced between Rs 380 and Rs 480 per bag.

Home construction to become a dream

Until last week, TMT steel was priced at around Rs 68 per kg. The price of non-branded steel has increased from Rs 63 to Rs 70 per kg. A load of M-sand now costs between Rs 5,400 and Rs 5,700, up from Rs 5,000. The price of a load of rock has increased from Rs 4,000 to Rs 4,500, while the price of metal has gone up from Rs 4,700 to Rs 5,200.

Cement blocks have also become more expensive, with the price increasing from Rs 36 to Rs 40 per block. Laterite bricks cost around Rs 9 each, but there is a major shortage due to a fall in production. The cost of building a house in Kerala has now increased to around Rs 2,500 per square foot.

Construction sector faces crisis

1. The construction sector could face a major crisis if the price rise continues. Around 25% of construction activity is currently at a standstill, according to industry sources.
2. Buildings that are already under construction cannot be completed, while new projects are also being delayed. Ordinary people and contractors are facing difficulties, while construction workers are also being affected by the crisis.