More than anyone else, the government itself is concerned over the implications of rising cement prices on the cost of irrigation projects and also on its other pet programmes like housing. It has made a commitment to build a whopping 1.5m houses for weaker sections during this year alone.
Cement prices in the state have already spiraled to around Rs 155 a bag across the state from Rs 120 a bag prevailed just before the onset of the present construction season. But more than the current price levels, the future scenario is very grim forcing the government to find a quick way out. The prices are expected to touch Rs 160 per bag in Hyderabad and other places in the state soon.