Brick prices soar by 30% ahead of kilns closure
As per government’s decision, brick kilns are yet to close – in wake of smog – from November 7 but prices of bricks have already been jacked up by over 30% in the provincial capital and adjoining districts.
Market survey shows A-grade bricks are being quoted between Rs14,000 to Rs14,500 per 1,000 units. A brick dealer, Muhammad Iqbal, said brick prices are showing increasing trend owing high-demand in the market. “Almost all contractors and builders have placed huge orders ahead of the closure of brick kilns to avoid shortage of commodity or break in their projects,” he maintained.
A builder, Waqas Javed, told The Express Tribune that brick prices have been swelled by Rs3,000 to Rs3,500 per 1,000 pieces during the past couple of weeks. Brick kilns are selling at ask price even to their regular customers. “Brick kilns are not yet closed but brick prices have been jacked up from Rs11,000 to Rs14,000 or higher per 1,000 units. We are being told that prices would further increase after the closure of brick kilns for a month from November 7,” he highlighted.
He pointed out that the government has recently announced incentive package to encourage investment and generate new employment opportunities in the construction sector but black-marketing of basic raw materials would negatively impact the growth of the construction sector. The government should take strict action against profiteers exploiting situation on the pretext of smog induced closure of brick kilns, he stressed.
Meanwhile, Punjab Minister for Industries Mian Aslam Iqbal warned brick kiln owners that the government will not tolerate any increase in brick prices. Speaking to a delegation of Brick Kiln Owners Association office-bearers on Wednesday, Iqbal said the government will initiate stringent action against brick kilns violating price regulations. “Brick kilns involved in profiteering will be sealed if any complaint is reported. The district administrations and agencies engaged in fixing brick prices have already been issued directions to launch a crackdown,” he disclosed.
The minister also directed Punjab Small Industries Corporation to early start provision of soft loans for transfer of traditional brick kilns to the latest zigzag technology. He indicated that the corporation is about to launch a soft loan programme for the transfer of brick kilns to zig-zag technology.
Earlier, the government had announced to transfer all brick kilns to modern zig-zag technology by December 31, however, it badly failed to achieve even half of the kilns to zig-zag technology till today. An official of the Punjab Environment Protection Department (EPD) disclosed that hardly 10% of brick kilns have been converted. The process is delayed owing to coronavirus induced lockdown in the country.
Published in The Express Tribune, November 5th, 2020.