Sand prices shoot up

Tribune News Service

Patiala, May 16

Two months after the Congress came to power in the state, prices of sand and gravel continue to soar. The price has increased to Rs 19,000-20,000 per truck or 800 cubic feet from Rs 14,000 last month for the same quantity. 

Though the government, after the change in guard in Punjab two months ago, has succeeded in curbing the levying of “goonda tax” by the miners, the mining activity has slowed down due to a decline in profitability.

 “The demand is low but supply is a problem. Therefore, rates are high. We have been told that those involved in the illegal trade of sand and gravel are no longer interested in it and the new entrants are reluctant to invest,” said a dealer in Patiala. 

Demonetisation of the high-value curency has also hit the sector hard. Investors are still holding back investments. “Rates of the construction material are expected to come down but till date, not much has changed,” said the dealers. 

“The government is contemplating various measures to improve the supply situation, including an increase in number of legal mines, using modern digging techniques and enforcement of stringent rules to ensure that illegal mining becomes unviable,” said a senior official. “We are planning to give permits for desilting and dredging of sand to the Irrigation Department to ensure adequate supply in the market at controlled rates,” he added.