MUMBAI: The Builders’ Association of India on Wednesday called for a total ban on exports of cement as shortages in the local market were leading to frequent price hikes. The association also asked the government to set up a regulatory authority to control high cement prices.
“An important factor affecting the building industry is the fact that after December 2008, the government levied an 8% duty on imports. This indirectly helped cement manufacturers and led to unjust price hikes,” said association secretary Anand J Gupta.
The ongoing cement price hikes have hit the construction industry hard. Currently, the housing sector consumes 55% of cement while infrastructure sector uses 35%, with the remaining 10% going towards other products.
The builders’ association also alleged that the domestic cement industry appears to have ignored an earlier order of the Monopolies and Restrictive Trade Practices Commission on continued price hikes.
In February last year, the MRTPC had held that all cement producers with the exception of one, acted in collusion to raise the price of cement.
Source : The Economic Times