A slump in construction industry has impacted business activity of firms selling tiles, plumbing equipment, hardware, electrical goods, glass material, wooden furniture and others in Vizianagaram.
Almost all the shops witnessed a significant drop in sales, as a majority of the builders have stopped construction activity owing to the steep hike in prices of steel, cement and other material.
Steel which was available at ₹55,000 per tonne six months ago is now priced at around ₹85,000. A cement bag which was priced at ₹280 is now being sold at ₹430. Hike in fuel prices have added to the increase in the prices of all materials. The labourers are also reportedly insisting on extra wages as their expenses and transport charges have gone up.
Chinna Veedhi, which is normally the busiest street of Vizianagaram, has been wearing a deserted look for the last three months.
“Usually, summer is the peak season for us as builders concentrate on the completion of structures before the onset of monsoon. But this year, the sales have dropped by almost 75%. We are unable to clear dues to the suppliers in the absence of buyers,” said a shop owner dealing with plumbing material.
Confederation of Real Estate Developers Association of India (CREDAI)-AP Chapter State General Secretary K Subhash Chandra Bose said the slump in real estate sector had impacted business activities of nearly 250 ancillary industries and suppliers of materials. “Apart from cement and steel, prices of almost all other materials including tiles and electrical material have gone by around 35%. That is why builders are unable to complete existing projects. There is little chance for them to take up new projects,” he said.
