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Shots Of Mortar

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

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

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Published At:
US