The current lockdown has hit cement dealers hard with a large number of cement bags facing damage in godowns across the State.
Cement companies offer a shelf life of three months for their product, but civil engineering experts and contractors say cement will lose up to 20% of strength after one month. Cement dealers have called for an immediate government intervention to save the industry from an impending collapse.
Around 12 lakh packets are at construction sites and with retailers. These include those whose three-month expiry date is over. Its quality will be compromised by 30% if it is used after six months, says Varghese Kannampilly, president, Kerala Government Contractors’ Association.
“Though construction codes specify a three-month deadline, cement can deteriorate in two months or a lesser period if stored improperly,” says a Public Works Department official.
Although the government offered lockdown relaxations for dealers of building materials, including cement, the district administrations in Malappuram and Kozhikode have hardened their stand as the districts continue to be in the COVID-19 Red zone. But in Kannur and Kasaragod, where COVID-19 hit harder, the administrations have permitted the cement dealers to clear stocks.
Price rise
“We are trying to convince the Malappuram and Kozhikode Collectors of the situation, seeking their help to tide over the crisis,” says Sirajudheen Ellathodi, general secretary, Kerala State Cement Dealers Welfare Association.
Even when the lockdown has crippled the struggling industry, the companies have increased the price of cement up to ₹50 a bag.
“The price hike came into effect on Wednesday. It is against an agreement made last year between the companies and the government that no further price increase would be made without the permission of the government,” says Mr. Sirajudheen.
Those who bought cement for ₹375 a bag before the lockdown will have to pay ₹425 when they resume their work after the lockdown. “This steep price hike is definitely going to serve a huge blow to the people,” says Mr. Sirajudheen. Manufacturers had assured the government in 2019 that the price would be raised only after due consultations. With the assurance being breached, the Walayar-based Malabar Cements must increase its production and steps must be taken to import cement, Mr Kannampilly says.
Cases
Several dealers have dared to clear their stocks. Nearly three dozen cases have been registered across the State against dealers for violating the restrictions. Nine dealers have been booked in Malappuram district and one of them has been fined ₹25,000.
Apart from the financial loss, damaged cement can cause environmental threats also,” says Mr. Sirajudheen.
