Flat buyers would now have to shell out more as stone chip prices have surged by around 25 per cent within three months.

Sources said the state government’s ban on issuing new licences and renewal of old licences for stone mining has led to the rise in price.

Suppliers with valid licences are demanding high price while those dealing illegally in the stone chips business, too, are charging exorbitantly, said sources.

The hike in stone chip prices is leading to a corresponding upsurge in construction cost. “There is a huge shortage of chips in the market,” said Nanhey Kumar, the proprietor of Kaushiki Constructions Private Limited.

“In some cases, the prices have shot up by 50 per cent. This has led to an average hike of Rs 100 to Rs 150 per sqft of construction. The flat buyers now are required to pay Rs 300 extra per sqft,” said Sachin Chandra, the president of Patna chapter of Builders’ Association of India.

“Those few people possessing mining licences are commanding high prices. The rest of the quarrying is done illegally. After quarrying, trucks loaded with stone chips are covered with plastic sheets to hoodwink the police,” said Rakesh Kumar, a stone chip supplier.

Rakesh added: “A tractor load of stone chips of 100 cubic feet (cft) was being sold for Rs 4,600 three months ago. Now it is being sold at Rs 6,200.”

Tuntun Singh, another stone chip supplier, said: “A person involved in illegal stone quarrying at Sasaram is paid Rs 500 to Rs 1,000 extra for ferrying chips between midnight and 5am. The supplier ferrying the chips on a vehicle has to pay a similar amount as bribe to the motor vehicles inspector to get away.”

Tuntun added that he sells 100cft of stone chips at Rs 6,000, which was Rs 4,600 around three months ago.

Another reason for the volatile market is the risk involved in transportation.

“Our truck was seized around three months ago while coming from Sasaram and we had to cough up Rs 50,000 for bail. Those ferrying stone chips illegally charge hefty transportation cost. As a result, the cost has gone up from Rs 4,800 per 100cft around three months ago to Rs 6,000 now,” said Anil Kumar, a stone chip seller.

Mines and geology department additional secretary Ghanshyam Prasad Daftuar said: “The department had issued an official order to ban issuing fresh licences and on renewing existing licences for stone mining in 2011. The period of most licence holders would expire by 2014.”