Constructors allege syndicate of rogue businesses behind rising rod prices

A syndicate of rogue businesses in league with each other have pushed up rod prices, the apex body of construction industry entrepreneurs has alleged.

The Bangladesh Association of Construction Industry or BACI made the allegation at a media briefing at Dhaka Reporters Unity on Thursday.  

BACI President Monir Uddin Ahmed said the price of mild steel or MS rod was Tk 63,000 per tonne on Tuesday morning but shot up to Tk 72,000 in the afternoon.

“It proves that a syndicate is raising the price in collusion,” he said.

According to him, the price of MS rod was between Tk 48,000 and Tk 50,000 in September last year, but increased by Tk 20,000 to 22,000 per tonne in six months.

“We generally make five percent profit, but the hike in rod price is causing us 25 percent losses. We will have to close business if this continues,” Monir said.

According to the Trading Corporation of Bangladesh, grade-60 MS rod was being sold in Dhaka at Tk 71,000 to Tk 72,000 per tonne on Thursday.

The price of this kind of rod was between Tk 62,000 and Tk 65,000 a week ago.

The customers are paying Tk 58,000 to Tk 60,000 for a tonne of grade-40 MS rod, up around Tk 7,000 from last week’s Tk 52,000 to 53,000 per tonne.

BACI Executive Member Shafiqul Haque Talukder said the MS rod manufacturers in Bangladesh were increasing prices of their products ‘abnormally’ and ‘without following any rules’.

He said the manufacturers had blamed the rise in rod prices on the rise in prices of raw materials, US dollar gaining against taka, bank loan interest rates, transport fare and delay in unloading at Chittagong Port.

“Rod prices can go up by 7 to 8 percent, but it can never rise by 50 percent,” he argued.

Shafiqul alleged cement companies have also raised prices by Tk 60 per bag after the rod prices shot up.

“We’ve information that the manufacturers of tiles, electric cables, sanitary and other construction materials are also planning to raise the prices of their products after seeing the hike in rod prices.”

He urged the government to act quickly to stop rod price hike.

“Otherwise,” Shafiqul warned, “we will have to stop doing business from Apr 15.”

But Monir promptly added that it was not a protest programme.

“Business will automatically stop if the prices continue to rise,” he clarified.