Cement boycott in Hyderabad

Q: I heard this news lately that the builders in Hyderabad have decided not buy cement till July 26. Is that true guys? Why?

Shiva Kumar, Hyderabad

21st July 2014

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Yes but the cement companies are also justified in their case. Especially after the unstable fuel prices, it was becoming increasingly difficult for any cement company to make a solid profit. Especially in the last quarter of 2013 and the first quarter of this year, cement companies failed to make any profit at all. I don’t know how much longer the builders can carry on this boycott, because any kind of construction work is not possible without cement. I don’t think the cement companies are going to yield, the builders will have to cut their losses and move on.

Lokesh Gowda, Hyderabad

23rd July 2014

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Actually as many as 20,000 houses and apartment building constructions have gotten affected because of this boycott decision. A huge number of small-time labourers are suffering as well. According to these builders, what is happening is that a cartel is being formed by all cement manufacturers, and they think that the government needs to get involved in this business because otherwise. The JAC is also claiming that failing any reduction in the prices of cement by the end of this week, they will resort to other means.

Geeta Naidu, Hyderabad

22nd July 2014

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Yeah, and this boycott keeps on getting extended. Initially it was till 12th July, then it got extended till 20th, and now it has been further extended till the 26th. This was actually started by the members of the Joint Action Committee (JAC), who are demanding that this price increase should immediately be revoked. I hope this issue gets solved asap, because at the moment a lot of construction projects are suffering because of this boycott.

Sriram Gowda, Hyderabad

22nd July 2014

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Yes, you heard right. These builders have all stopped buying cement for quite some time now. Its in protest of the cement price hike. The price of cement has been on the continuous rise for some time now. It rose from Rs 200 per bag to Rs 300 on July 2. Thats a 50% increase! Most realtors and builders across Hyderabad started their boycott shortly after that, around 5th July.

Suresh Kota, Hyderabad

21st July 2014

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