24 September, 2020

Shots Of Mortar

Charged with cartelisation, it's judgement day for cement firms

Gireesh G.V.
Shots Of Mortar
The Charges
  • Cement prices have gone up substantially due to cartelisation
  • Prices have risen by a much higher margin, compared to the hike in costs
  • Cement firms have deliberately slowed down production in a bid to create a supply-demand mismatch
  • Pricing and supply-related decisions have been jointly taken by firms during their CMA meetings
The Counters
  • Such allegations are baseless and there's no evidence to prove it
  • Demand from infrastructure and housing sectors has hiked prices
  • Monthly capacity utilisation was a high 94% during 2006-07; in March 2007 it was over 100%
  • No such decisions were ever taken; industry is hiking capacities to meet the additional demand


It seems almost everyone has turned against them. Way back in February this year, finance minister P. Chidambaram had loudly hinted that cement prices were unusually...


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