KOTTAYAM: Before the Central-State budgets and Cess coming into effect, companies have started looting people by hiking the price of cement bag by Rs 50.

Companies have given the message to distributors that the hike will come into effect on February 1. This will be a major setback for construction sector.

The cement that was priced at Rs 350-370/bag will now cost Rs 400-420/bag. For retail sales, there will be an increase by Rs 10 to 20.

An earlier hike of Rs 50, presuming that GST for cement will be withdrawn, was being given to merchants as subsidy. Companies have informed that from February 1, this subsidy will be withdrawn.

This hike will not only affect construction sector but also post-flood construction activities. Cement sold out in Kerala every month is 10 lakh tonne.

Ramco cement- 2 lakh tonne

Shankar-1.25

Chettinad - 1.25

ACC - 1

Dalmia- 75,000

L and T - 50,000