24 September, 2020

Shots Of Mortar

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

Gireesh G.V.
Shots Of Mortar
outlookindia.com
-0001-11-30T00:00:00+05:53
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...
unsub

THIS ARTICLE IS PRICELESS...

To read this piece, and more such stories in India's most exciting and exacting magazine, plus get access to our 25-year archives goldmine, please subscribe.


In this article:

More from Shuchi Srivastava


Latest Magazine

September 28, 2020
content

other articles from the issue

articles from the previous issue

Other magazine section