SEARCH

Cities » Bangalore

Updated: June 17, 2013 11:57 IST

Cement price dips, but it’s no concrete advantage to consumers

Sharath S. Srivatsa
Comment (1)   ·   print   ·   T  T  
HIGH-RISE:The price of a bag of cement, which was around Rs. 250 nearly two years ago, suddenly started moving upwards. File Photo: Mohammed Yousuf
HIGH-RISE:The price of a bag of cement, which was around Rs. 250 nearly two years ago, suddenly started moving upwards. File Photo: Mohammed Yousuf

The spiralling cement prices, which was a cause of concern, has now dipped by more than Rs. 20 a bag, bringing some relief to both consumers and construction industry stakeholders.

The cost per bag here was between Rs. 330 and Rs. 350; it is now between Rs. 300 and Rs. 330, depending on the grade and brand.

The decline in prices comes as cement manufacturers and their association were asked by the Competition Appellate Tribunal in May this year to pay 10 per cent of the Rs. 6,307.32 crore fine imposed for cartelisation on manufacturers by the Competition Commission of India in June 2012.

According to the Builders’ Association of India (BAI) national managing committee member M. Ramesh, the price of a bag, which was around Rs. 250 nearly two years ago, suddenly started moving upwards without any justification.

“It reached a peak price of Rs. 350 without any abnormal increase in their raw material or operational cost. The BAI approached the Competition Commission against the cartelisation and the commission agreed with the argument. A hefty fine was imposed both on 11 companies and the Cement Manufacturers Association.”

Meanwhile, the decline in prices, he said, would help a large number of developers as well as individuals planning to construct homes.

Mr. Ramesh said cement comprises about 10 to 15 per cent of the raw material cost in construction and a usual 10 square-house requires about 400 to 500 bags.

Stating that the commission’s order on cartelisation could deter companies from raising prices abnormally in future, he conceded that the benefit of declining price of cement may not be passed on to consumers by contractors/ developers.

RELATED NEWS

Elections hit construction industryMay 5, 2013

More In: Bangalore

Every price has increased! Even brinjal vegetable which was sold
Rs 5 per KG two years ago is now available not less than Rs 20
per KG even during its season! Why target Cement alone? Steel,
bricks, Sand, TV,fridge,Houses,Flats - Everything has increased!
Are these builders increase their property prices based on input
costs only? Why real estate prices are sky rocketing when
apparently the input costs or construction costs are not
increasing that much? Let BAI bring out a transparent mechanism
for pricing the properties developed by their members.

There is no check for real estate prices. Who will bell the cat?

from:  Varadarajan
Posted on: Jun 18, 2013 at 10:34 IST
This article is closed for comments.
Please Email the Editor

Bangalore Connect Newsfeed

Karnataka

Mangalore


O
P
E
N

close

Recent Article in Bangalore

Mystery in beauty

Ashoka pillar in Jayanagar is lit up »