Supply-side syndicate behind unusual price hike of MS rod: BACI

The Bangladesh Association of Construction Industry (BACI) on Friday said the price of MS rod, a key input component in construction, has been hiked unreasonably by 25-30 per cent in just two months (November to December) by a supply-side syndicate in the country.

They strongly protested against the unusual price hike of MS rod by the syndicate in such a short time during a press conference at Dhaka Reporters Unity (DRU) in the capital, reports news agency UNB.

BACI president engineer SM Khorshed Alam said various development works including construction of infrastructure have been hampered due to the increase in price.

“Around 20-25 per cent is spent on rods to build any infrastructure. Due to the sudden price hike, the expenditure of this sector has jumped more than before. So it’s almost impossible to continue the ongoing development work,” he added.

He also said the price of each tonne of MS road was Tk 49,000-50,000 before November 2020. But now it has jumped to Tk 68,000 per tonne following the syndicate’s move.

“The annual demand of MS rods is around six million tonnes in the country. Our members use 50 per cent of the demand for construction work,” he added.

Engineer Khorshed urged the government to adjust prices in all works as per PPR as soon as possible.

“The policy makers should bring MS rod prices in moderate stage adjusting tariff, VAT and AIT discussing with Bangladesh Steel Manufacturers’ Association (BSMA) in a short time. Duty free rod should be imported through TCB to speed up the construction work,” he said.

BACI president also said in order to compete in the construction work of foreign companies, it is necessary to ensure partnership with local industries and the rate schedule of different organisations should be updated as per current market prices.

BACI former president engineer Munir Uddin Ahmed and general secretary Md Sahidul Islam and others were present.