Punjab Housing to Become Costlier as Brick Prices Rise 15% Due to Coal Price Surge

Firozpur, March 28: Punjab's brick kiln industry is currently in the grip of a severe crisis. Soaring coal prices and increased taxes have led to a sharp rise in production costs, forcing kiln operators to hike brick prices. This decision will directly impact common people, especially those planning to build or currently constructing their homes.

The Firozpur Brick Kiln Owners Association held an urgent meeting at the Shera Punjab Restaurant in Firozpur to discuss the crisis and its potential solutions. The meeting was chaired by District President Rakesh Aggarwal.

Coal Prices Double in Short Span

During the meeting, Rakesh Aggarwal highlighted the severity of the situation:

• Coal prices have risen from ₹14,000 per ton to ₹26,000 per ton – nearly a 100% increase in a short period

• A truckload of coal that cost ₹5 lakh earlier now costs ₹9.40 lakh

• GST on coal has been increased from 5% to 18% , further adding to costs

• Royalty fees have also been increased, worsening the financial burden

Aggarwal also alleged that some traders are taking advantage of the Iran-Israel conflict to artificially inflate coal prices and earn huge profits.

Brick Prices Hiked

Given the rising costs, the association unanimously decided to increase brick prices:

Category	Old Rate (per thousand)	New Rate (per thousand)
Standard	₹7,000 – ₹7,200	₹8,000 (inclusive of GST)
Major Cities	–	₹9,000

The kiln owners emphasized that this was a compulsory decision driven by rising costs, not an attempt to increase profits.

Industry Under Threat

Punjab has approximately 18,000 brick kilns. However, in recent days:

• 50 kilns have already shut down

• If the situation continues, many more kilns are at risk of closure

• Thousands of workers' livelihoods are at stake

Kiln owners warned that continuing operations at old rates is impossible under current conditions.

Impact on Construction and Real Estate

The brick price hike will have a cascading effect on:

• Individual home construction: Families building their own houses will face higher costs

• Real estate sector: Increased construction costs will make housing projects more expensive, ultimately passing the burden to buyers

• Middle-class and low-income families: Already struggling with rising cement, steel, and other material prices, this additional hike will make home ownership even more challenging

With cement, steel, and now brick prices all rising, the total construction cost is set to increase significantly.

Demands from Government

Kiln owners have put forward several demands to the government:

1. Control coal prices – Take immediate steps to regulate coal rates

2. Reduce GST – Roll back the GST hike from 18% to 5%

3. Lower royalty fees – Provide relief on royalty charges

4. Protect the industry – Take measures to prevent further kiln closures and safeguard workers' livelihoods

Expert View

Real estate experts note that rising input costs directly impact housing affordability. With brick prices increasing by 15%, a typical house construction project could see a cost escalation of 5-8% overall. This comes at a time when property prices and registration costs are already rising across several states.

Outlook

If the government does not intervene soon, the brick kiln industry in Punjab may face further closures, leading to supply shortages and even higher prices. For common people, the dream of building a home will become more expensive, adding to the already high cost of living.

Kiln owners have urged the government to act swiftly to save the industry and protect the livelihoods of thousands of workers dependent on it.