Fly ash bricks burn bigger holes in homebuyers’ pockets

Indore: Building a house may get less affordable in the state as a new price hike for fly ash bricks is set to take effect. Govt infrastructure works and commercial developments across Madhya Pradesh too may become costlier from June as fly ash brick manufacturers announced the hike citing a sharp rise in diesel and transportation costs.

In a meeting late Thursday, the Fly Ash Brick Manufacturers Cooperative Society approved a rate increase from around Rs 6,000 per 1,000 bricks to Rs 6,500-7,000 per 1,000 bricks, excluding GST.

Industry estimates suggest that 8,000-10,000 fly ash bricks are required for the construction of an average 1,000 sq ft flat. With the revised pricing, brickwork costs alone could rise by 8-10 per cent in several projects, adding pressure to housing and infrastructure development.

Nearly 80 per cent of the fly ash bricks manufactured in Madhya Pradesh are consumed within the state, while the remaining 20 per cent are supplied to neighbouring states including Maharashtra, Rajasthan and Gujarat, making the rate revision significant for construction activity beyond MP as well.

“Transport expenses have increased by more than 20 per cent in recent weeks. Since fly ash bricks are supplied in bulk and freight forms a major component of pricing, manufacturers are left with little option but to revise rates,” said Abhishek Purohit, vice-president of Fly Ash Brick Manufacturers Cooperative Society Ltd.

Indore’s fly ash brick manufacturing sector is among the largest in the region, producing nearly 20 lakh bricks daily. The city has more than 350 manufacturing units, while Madhya Pradesh has nearly 8,000 units.

Manufacturers said the industry is also facing rising logistics costs for key raw materials including cement, gypsum, limestone, crusher sand and fly ash. The higher freight burden is affecting both inbound raw material movement and outbound brick supplies.

Gaurav Mohta, president of the Fly Ash Brick Manufacturers Cooperative Society Ltd said, “Since a portion of our production is also supplied to neighbouring states, higher brick prices will eventually increase project costs for developers, contractors and govt infrastructure works.”

Industry officials said fly ash availability remains dependent on thermal power plants across the state. Indore-based manufacturers source nearly half of their fly ash requirement from the Shree Singaji Super Thermal Power Project in Khandwa and the Khargone Super Thermal Power Station. Captive power plants across Madhya Pradesh, along with NTPC units in Sarni and Gadarwara, are also major suppliers.

Builders said the latest increase will add to the pressure from rising steel, cement and labour costs.

“Fly ash bricks have become the standard walling material in most residential and commercial projects. Any increase in brick prices directly impacts project costs and eventually affects housing affordability,” said Anupam Tyagi, a developer at Indore.

Industry experts said fly ash bricks are gradually replacing traditional clay bricks due to environmental regulations, lower weight and better thermal efficiency.