Construction companies in Kerala have been hit by the sharp rise in the prices of cement and steel. The shortage of river sand, which is extensively used in the State, has further added to the problems. The cement prices have gone up by Rs25-30 per bag to Rs155-165. Except for Malabar Cements, a state-owned company, almost all companies have raised their prices. The busy construction season resulting in heavy demand for cement, 15 percent sales tax and 15 percent additional sales tax are said to be reasons for the steep hike in cement prices.