Surging Material Costs Cripple Coimbatore’s Construction Sector; Industry Demands Government Intervention

The construction industry in Coimbatore is reeling under unprecedented cost pressures as the prices of essential raw materials such as jelly, M-sand, and P-sand have nearly doubled in recent months. This sharp rise is disrupting individual, commercial, industrial, and even government infrastructure projects across the district.

In a united response to the crisis, six prominent industry bodies the Builders Association of India (Coimbatore), Coimbatore Builders and Contractors Association, Coimbatore Civil Engineers Association, Coimbatore District All Civil Engineers Association, CREDAI – Coimbatore, and Sulur Civil Engineers Association have formed a Joint Action Committee (JAC) to take up the matter with authorities.

On May 8, the JAC submitted a formal representation to Coimbatore District Collector Pavan Kumar Giriappanavar, urging him to escalate the issue to the State Government and seek immediate relief by bringing down construction material prices.

According to the JAC, prices have surged alarmingly jelly has risen from ₹3,000 to ₹5,000 per unit, M-sand from ₹3,600 to ₹6,000, and P-sand from ₹4,200 to ₹7,000. This domino effect has also pushed up the prices of related construction components, including ready-mix concrete, fly ash bricks, paver blocks, and other pre-cast materials.

Although a price cut of ₹1,000 per unit was promised by the Crushers and Lorry Owners’ Association during a meeting held on April 27 at the Tamil Nadu Secretariat chaired by Water Resources Minister Durai Murugan this reduction is yet to be implemented on the ground.

“The construction industry is being pushed to the brink,” said Abhishek, Convenor of the JAC. “With mounting costs, projects are stalling, and labourers are losing jobs, often without viable alternatives.”

To prevent further disruption, the JAC has proposed the establishment of a dedicated regulatory authority akin to RERA to monitor material pricing and ensure fair practices across the supply chain.

Until decisive action is taken, industry insiders warn that the current price volatility could have long-term consequences on infrastructure development and employment in the region.