With cement prices hitting the roof in the country, the work in most of the areas like housing and roads is badly hit. From Rs 160 per bag of cement in 2005 to Rs 180 in 2006, it has gone up to Rs 280 to Rs 300 today. Besides, even if people are ready to buy paying this price, there is a severe shortage in the State.

Speaking to Deccan Herald, Karnataka State Contractors Association (KSCA) president A S Chinnaswamy Raju said that the State government, in spite of being aware of the problem, was keeping mum. Despite several letters and reminders, the government had not responded, he added.

Builders’ Association of India, Karnataka Centre chairman A Chamaraja Reddy said that the soaring prices of cement had hit the small and big contractors very hard and charged that the escalation was mainly due to artificial shortage caused by the manufacturers themselves.

They said that while the Andhra Pradesh and Tamil Nadu governments had taken steps to see that the demand of the respective states was first met, the Karnataka government had done nothing of the sort.

Bruhat Bangalore Mahanagara Palike Contractors Association president R V Srinivas said, many of the works taken up by them had come to a standstill as they were not able to factor in the escalation cost because the BBMP refused to hike the standard rate.

According to Mr Raju, one way of overcoming this problem was to import cement from countries like Pakistan, Russia or Korea. But the problem here is that the minimum quantity that can be imported is 12,500 tonnes which works out to 30,000 bags, which the contractors are ready to import. However, the problem is of storage, as once the cement is brought from Chennai ports, there is no place to store such a large quantity.

The only way out, according to Mr Raju and Mr Reddy, is for the Industries Department to make arrangements to store the cement. The cost of this imported cement would be around Rs 180 per bag and thus the cement shortage can be met, they added.

Another major problem is that of sand. KSCA secretary Kempanna said that the cost of a load which was Rs 6,500 had gone up to Rs 13,000 a load. Earlier, the price of sand was always 20 pc of the cost of jelly. But now, if jelly cost Rs 20 per Cft, sand cost Rs 35 per Cft.

The association leaders alleged that the sales tax department was harassing the small contractors asking them to pay 12.5 pc tax on jelly which is a non-registered item.

One way of overcoming the shortage is to use crushed jelly in place of sand which is already being done in Mumbai, said Mr Raju. But even for this, the government should come forward to encourage the contractors to use them by giving concessions. Further, the industry leaders have warned that if their demands are not met, they would launch an agitation soon.