Demand, supply chain disturbed as sand prices soar to ₹40 per cubic foot

The previous Congress government at a cabinet meeting on November 10, 2021, had decided to slash rates of sand and gravel to ₹5.50 per cubic foot to provide these minor minerals at cheaper rates to the people

With the demand-supply equilibrium disrupted, the sand and gravel prices have skyrocketed and touched ₹40 per cubic foot against the fixed price of ₹5.5 per cubic foot. The steep hike has hit the construction activities in the entire state.

With the demand-supply equilibrium disrupted, the sand and gravel prices have skyrocketed and touched ₹40 per cubic foot against the fixed price of ₹5.5 per cubic foot. The steep hike has hit the construction activities in the entire state.

The reason behind the soaring prices is the AAP’s ban on illegal mining operations, it is learnt.

In a tit-for-tat and to put pressure on the government, mining contractors have also limited the extraction of sand and gravel from legal mining sites, leading to the hike in the prices.

The previous Congress government at a cabinet meeting on November 10, 2021, had decided to slash rates of sand and gravel to ₹5.50 per cubic foot to provide these minor minerals at cheaper rates to the people.

Earlier, the government rate of such minerals was ₹9 per cubic foot.

Notably, the mineral contractors were awarded through e-auction to various concessionaires in accordance with the Punjab Sand and Gravel Mining Policy, 2018.

“The sand prices have soared. It is bringing a bad name to the government as construction activities have taken a hit in the state. The government must act as the process won’t come down until the demand-supply gap is not bridged. Ëxtraction takes place before monsoon, said Jagtar Singh, a civil contractor.

He added that that many contractors have stopped work due to the hike, though it is the best time to recarpet roads. However, gravel is not available in the market.

Sources in the mining department said that most of contractors are under pressure since the AAP has called for strict action for the illegality, adding that DCs will be held responsible, which is why everyone is treading with caution.

On the issue, secretary (mining) Rahul Bhandari said that government is aware of the issue and he has already asked the deputy commissioner to check the rising prices and exhort the contractors to supply adequate material in the market.

“We have to ensure illegal mining does not take place but at the time we have to also make sure that the common man is not suffering,” he said, adding that the prices will come down in a week as he is taking steps to increase the lifting of sand and gravel.