INDORE: The cost of building a house in the state may rise as fly ash brick manufacturers announce a price increase. This change could have a wider impact, making government infrastructure projects and commercial developments in Madhya Pradesh more expensive starting June.
During a meeting on Thursday, the Fly Ash Brick Manufacturers Cooperative Society agreed to raise the price from approximately Rs 6,000 to Rs 6,500-7,000 per 1,000 bricks, excluding GST.
Industry estimates indicate that for constructing an average 1,000 sq ft flat, about 8,000-10,000 fly ash bricks are needed. The new rates could result in an 8-10 percent increase in brickwork costs across various projects, putting additional strain on housing and infrastructure development.
Approximately 80% of fly ash bricks produced in Madhya Pradesh are used within the state, while the remaining 20% are distributed to nearby states including Maharashtra, Rajasthan, and Gujarat. This hike is therefore significant for construction activities both in and out of Madhya Pradesh.
“Transport costs have surged by over 20% recently. With fly ash bricks shipped in bulk and freight constituting a substantial portion of pricing, manufacturers have no alternative but to adjust their rates,” stated Abhishek Purohit, vice-president of the Fly Ash Brick Manufacturers Cooperative Society Ltd.
Indore has one of the largest fly ash brick manufacturing sectors in the region, producing nearly 20 lakh bricks daily, with over 350 units within the city and around 8,000 across Madhya Pradesh.
Manufacturers have reported rising logistics costs for essential raw materials like cement, gypsum, limestone, and fly ash, which affects both inbound and outbound supplies.
Gaurav Mohta, president of the Fly Ash Brick Manufacturers Cooperative Society Ltd, noted, “As part of our production is also sent to neighboring states, elevated brick prices will inevitably raise project costs for developers, contractors, and government infrastructure projects.”
Industry experts point out that the availability of fly ash relies heavily on thermal power plants in the state. Indore manufacturers obtain nearly half of their fly ash from the Shree Singaji Super Thermal Power Project and the Khargone Super Thermal Power Station, while captive power plants across Madhya Pradesh and NTPC facilities in Sarni and Gadarwara are other major suppliers.
Builders have expressed concerns that this latest increase will compound pressures from rising steel, cement, and labor costs.
“Fly ash bricks are now the preferred walling material in many residential and commercial projects. Any price rise in bricks directly impacts project expenses and, ultimately, housing affordability,” remarked Anupam Tyagi, a developer based in Indore.
Experts highlight that fly ash bricks are increasingly replacing traditional clay bricks due to environmental regulations, reduced weight, and enhanced thermal efficiency.
