|
The construction sector with its remarkable growth performance -- nearly 9.0 per cent a year for more than a decade -- has been playing a significant role in the country's socio-economic development. The sector does also play a major role in the absorption of skilled and unskilled workers. But for the last couple of years, it is in real difficulty because of unusual hike in the prices of construction materials, mainly those of M.S rod and other iron and steel products. Of late, there has been yet another addition -- cement.
The price of 40-grade mild steel (MS) rod, which is widely used in the construction of residential buildings other than high-rise ones, was Tk. 17,000 a tonne three years back. The price of the same soared to Tk. 45,000 a tonne early last year, causing serious disruptions to construction activities. However, the prices of iron and steel products came down marginally late last year for a brief period. At the very onset of construction period this year, the price of 40 grade MS rod soared again to Tk. 39,000 a tonne. The plight of those seeking to build houses or other infrastructures has multiplied by the recent increase in the price of cement. Over the period of last couple of weeks, the price of a 40-kg bag cement bag increased by Tk. 35 to Tk. 40.
The abnormal increase in basic construction materials has seriously affected the usual pace of growth of the sector that employs hundreds of thousand unskilled workers all over the country. Many had to suspend their on-going construction work and other prospective builders have adopted wait-and-see policy in view of the high prices of steel products and other construction materials. But how far are these price-hikes justified? The rise in the price of raw materials in the international market is very often cited to justify the hike in the prices of the finished goods in the local market. The rise in the prices of different commodities is nothing unusual. But the local producers and traders, in most cases, tend to demonstrate their unscrupulous intention of making undue profit cashing in on the rise in the raw materials in the international market. They avail themselves of every opportunity to fleece the consumers.
What pains the people most is that the producers and traders are not ready to share the benefits of duty cuts or tax reductions with the buyers. The manufacturers and traders almost in each and every case of price-rise do demand either cut in duty or full exemption of the same to help 'reduce the price'. But as soon as the government grants such facilities, they prefer to stick to their previous price tags. The same happened in the case of MS rod also. Last year, the government reduced duty on billet but the general buyers got nothing out of it. Then again, how can one explain the rise in the prices of cement? The country already has overcapacity in cement production. In a cut-throat competitive environment, many small cement producing plants are finding it difficult to survive. But on the plea of rising clinker prices in the international market, the cement factories have raised the price of cement during the peak construction season.
The traders of MS rod and other iron and steel products, according to a report published Saturday in this daily blamed 'syndicated' price manipulation of scrap metals by the ship-breakers in Chittagong for the latest hike in the price of iron and steel products. The concerned government agency should see whether such an allegation is true or not. True, the government has no business in business. But it is both moral and legal obligation on the part of the government to ensure that commodity prices remain with in the reach of the common man and the concessions made to benefit the consumers actually reach them.
|