Mangaluru: Red laterite stone prices remain high despite capital reduction

Mangalore Today News Network

Mangaluru, Oct 29, 2025: Even though the government has reduced the capital requirement and simplified the licensing process for red laterite stone quarrying, suppliers continue to charge double the earlier price, making it difficult to carry out construction works. The Dakshina Kannada District Civil Contractors’ Association has urged the district administration to take measures to control prices.

Speaking at a press conference at the Press Club on Tuesday, Association President Mahabala Kottari expressed dissatisfaction and warned that if no action is taken, a protest would be inevitable.

Earlier, due to illegal laterite stone quarrying, officials had imposed strict restrictions, increasing the capital requirement to ₹265 per unit, which caused hardship for quarry operators. The shortage of red stones also stalled construction works for nearly three to four months. Later, quarry operators and contractors held discussions with the Deputy Commissioner, district in-charge minister, and people’s representatives, following which the capital was reduced from ₹265 to ₹90–₹100. The permitted quarrying depth was also increased from three feet to six feet.

However, despite this reduction, the price of red laterite stones has not come down. Stones that earlier cost ₹30 now cost ₹55. As a result, the cost of constructing a 1,200 sq. ft. house has increased by around ₹3 lakh. Contractors who had agreed to fixed-price construction contracts are facing severe financial strain. “If we raise prices, common people will struggle to build homes. The district administration should intervene and fix a fair rate,” Kottari said.

He also raised concerns about the high price of sand in CRZ (Coastal Regulation Zone) areas. The price of three units of sand has skyrocketed from ₹6,500 to ₹23,000. “Non-CRZ sand also contains a lot of gravel and clay, leading to more loss,” he added.

Responding to a question about the new GST rates, he said, “Although GST on cement has been reduced from 28% to 18%, cement prices have still increased, so we don’t benefit. GST on iron remains unchanged at 5%.”

Association Vice President Dinkar Suvarna, members Satish Kumar, Secretary Ashok Kulal, Treasurer Suresh J., and members Venkatesh and Subrahmanya were also present.