The New Nation - Internet Edition

Staff Reporter

Not the international market inflation but syndicates of local dealers and manufacturers are responsible behind the current price hike in building materials. Government needs to take immediate action to save the housing sector, said members of the Real Estate and Housing Association (REHAB) and other developers.

Since the last week of December-2007 till January 30, 2008, price of 60 grade iron rod, which is one of the most essential building materials, has witnessed increase by Tk16,000 per ton.

Local dealers and manufacturers are to be blamed for this abnormal increase as international market price did not rise in this way, said REHAB President Mukarram Husain Khan.

"Local dealers and manufacturers of this particular but most essential element of construction have frozen their trade. It has caused artificial crisis in the market. The item, which was sold at Tk 48,000 per ton by the end of 2007, is now selling at Tk 63,000 per ton," he said.

"Yet, syndicated dealers and manufacturers have cut off all supply, expecting the price to reach as high as Tk75,000 per ton," he added.

He was addressing a press conference on the abnormal price hike of building materials at the National Press Club yesterday.

According to some reports published in several national dailies in last couple of days, unscrupulous syndicates of 20 to 22 iron manufacturers, along with their main dealers have stopped production to cut off market supply.

This was revealed, when law enforcement authorities had raided some of their factories and exposed huge amount of raw lots, dumped to create imaginary crisis in the market.

We run our business on advance booking with a marginal time period of two to three years. Present price hike is going far beyond our consideration, added the REHAB President. "If Government don't take immediate action against those evil aspects, we will have no option but to modify, our service cost. It will result in significant increase in cost of flats and apartments, which means further decline of customer number," added Mukarram Hossain.

Echoing his statement, REHAB General Secretary Engineer Tanvirul Haque Probal further explained the situation, while addressing the press conference.

Directly or indirectly, over 25 lakh unskilled and semi-skilled labours are employed in the construction sector, who eventually support over one crore families.

If the construction sector faces any major downfall, they will also lose their source of living, he said.

According to him, following rods, price of other essential construction materials have also increased significantly in last couple of years.

"Price of each bag of cement increased by 10 to 20 per cent, from the price recorded in 2007," said the REHAB Secretary General.