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Coimbatore Construction Industry Reels Under Rising Building Material Prices

Strategic Insights

— 1 min read

The construction industry in Coimbatore, Tamil Nadu, is facing a significant crisis due to skyrocketing prices of essential building materials such as blue metal, M Sand, and P Sand. The Tamil Nadu Stone Quarry, Crusher, and Lorry Owners Association agreed to reduce prices by ₹1,000 per unit on April 27, but the reduction was not implemented. The Joint Action Committee (JAC), comprising six organizations, has alleged that quarry and crusher owners have deliberately curtailed production to create artificial scarcity and drive up prices. The committee has urged authorities to restore the previous pricing structure and has suggested the formation of a dedicated regulatory authority to monitor prices.

Key Takeaways:

  • The prices of blue metal, M Sand, and P Sand have surged from ₹3,000, ₹3,600, and ₹4,200 per unit to ₹5,000, ₹6,000, and ₹7,000 per unit, respectively.
  • The steep increase in material costs has led to cost overruns, delays in project execution, and displacement of the workforce in the construction industry.
  • Six organizations, including the Builders' Association of India (BAI), Coimbatore Builders and Contractors Association (CEBACA), and Confederation of Real Estate Developers' Association of India (CREDAI), have formed the Joint Action Committee to collectively take up the issue with authorities.
  • The committee has urged the formation of a dedicated regulatory authority like the Real Estate Regulatory Authority (RERA) to monitor and regulate the prices of construction materials.
  • The price hike has affected various construction materials, including ready-mix concrete, paver blocks, fly ash bricks, hollow blocks, solid blocks, and precast products.

Statistics:

  • Blue metal prices: increased from ₹3,000 to ₹5,000 per unit
  • M Sand prices: increased from ₹3,600 to ₹6,000 per unit
  • P Sand prices: increased from ₹4,200 to ₹7,000 per unit
  • Average price increase: 66.6% for blue metal, 66.6% for M Sand, and 66.6% for P Sand
  • Number of organizations in the Joint Action Committee: 6

Sources:

  • Times of India, "Coimbatore construction industry reeling under soaring prices of building materials", [no date]
  • Joint Action Committee (JAC) representatives, [no date]
  • Tamil Nadu Stone Quarry, Crusher, and Lorry Owners Association, [no date]

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