Parvathipuram (Vizianagaram): Civil contractors of Andhra Pradesh are making a beeline to Odisha to purchase cement owing to lower prices, leaving the local traders fuming.

Construction activity in Vizianagaram district is picking up, especially so in Parvathipuram. Subsequently, the prices of cement too shot up keeping pace with the construction works. However, the price of cement in neighbouring Odisha state was comparatively lower. Major contractors and individual house owners who noticed the price difference in the two states started heading to Odisha to purchase cement and bring it to the construction sites. What started as a trickle has now turned into a flood with individuals renting out jeeps and cabs to bring cement bags while major contractors are using trolleys and DCM vans for bulk purchase of cement bags.

The distance between Parvathipuram and various towns in Odisha range from 30 to 40 kilometres. The transporters travel to Venkampeta, Alamanda, Neelavadi, Narayanapatnam and Koraput for the purchases. Each bag of cement, for instance, is sold at Rs 340 in Parvathipuram while it is only Rs 240 in the neighbouring state. Nagarjuna, Ramco and Vishnu are among other major brands that are following this price variation in the two states.

Decline In Cement Sales

The spurt in outside state purchases, has left local cement traders fuming. They allege that the cement companies have formed a cartel to sell cement at higher prices to AP dealers. The action of the cement companies and that buyers activity of transporting from Odisha has severely hit the cement dealers in Vizianagaram.