Big players in the steel and cement industry are indulging in cartelization to jack-up prices, Union road transport minister Nitin Gadkari has said raising concerns about its impact on infrastructure projects.
Responding to a suggestion from the Builders Association of India of Western Region that the government should set up a regulator for these cement and iron on Saturday, Gadkari said, “We are in the process of finding out the solution for that. Your one of the recommendations is for a regulator for steel and cement, which is also a good suggestion. I will look into it… I will take it to the finance minister and Prime Minister.”
Earlier, Gadkari had written to the PM citing how companies were artificially jacking up prices and had sought his intervention.
Builders’ body Credai has urged the Union government to immediately step in and control the prices of cement and steel, the two commodities that are key to undergirding physical infrastructure.
In a letter to the Prime Minister’s Office, Credai has flagged the issue of a steady and rapid price rise of cement almost every month since 2019 and claimed that it will be difficult for realtors to remain price-correct while dealing with the post-lockdown impact. According to the builders’ body, the price of cement in January 2019 per tonne was Rs 40,000, which shot up to Rs 58,000 in December 2020.
“Since January 2019, every month, cement prices have gone up. Builders are already facing various financial pressures. It is obvious that the steel companies are acting in concert to increase the prices. There is absolutely no rationale for a price increase of this magnitude in a pandemic-ravaged economy,”
“Ultimately the cost of this will have to be borne by the homebuyers and other end users. Not only have we asked the PMO to intervene, but we shall also be writing to the Competition Commission of India (CCI) to take cognizance of this pricing issue of cement companies.