Brick prices likely to go up, but contractors think otherwise
Tribune News Service
Amritsar, April 2
Even as the Association of Brick-Kiln Owners apprehends soaring up of brick prices due to unseasonal rain in the region, real estate contractors describe it as too early a call.
The rain has hampered the production of bricks, resulting in a set back to the brick-kiln industry in the state, observed the executive body meeting of the Punjab Brick-Kiln Associations. The price hike could range up to from Rs 1,000 to Rs 1,500 per one thousand bricks.
According to Kuldeep Makkar, chairman, Punjab Brick-Kiln Associations, “The brick-kiln industry in the state is going through a struggling phase. Already almost 70 per cent of brick-kiln units are closed down due to non-friendly central and state policies and now this unseasonal rain has added more woes to the lot of the owners.
There had been a steep downfall of up to 40 per cent in brick production due to the conditions not favouring the industry, said KK Khanduja, senior vice-president, All-India Brick and Tiles Manufacturers Association, who is also the senior vice-president of the Punjab Brick-Kiln Owners Association,
“The industry in Punjab has also been going through a tough time due to an unfriendly industrial policy towards the brick-kiln owners. Already lack of a Single-Window System has forced the brick-kiln owners to go through 12 departmental checks,” he remarked.
Meanwhile, people associated with the real estate projects and townships said that any rise in the cost construction material would adversely impact the industry, which is already passing through a rough phase.
Sanjay Joshi of Impact Project said the reaction of the brick-kiln industry was too early. He said they were exaggerating the problems being faced by the industry. He said post-harvest, many plot holders were waiting to start construction on the plots which they have bought in different pockets of the city.
“Currently, the retail market price of 1,000 bricks is between Rs 4,500 and Rs 4,800 and a raise of Rs 1,000 would take it to nearly Rs 6,000”, he quipped.
In this scenario, people will only hold back their plan of construction and the inventory of open plots would continue.
A retail construction-material dealer, Harpinder Singh, said any unwarranted rise in the cost of construction material would ultimately hit the quantum of construction. He said the brick-manufacturing season has just started and plenty of time lay ahead.
He said any unnatural increase in the prices of construction material would be a dampner on the construction activity and would only hold up the inventory. He added that they were expecting a good construction season this time after some respite was offered on housing finance by the government and lifting of the requirement of the NOCs by the state government.
