Real Estate raises voice against Cement Cartel

• New Delhi, July 02, 2016: The cement manufacturers have formed a price cartel and have been demanding increased prices for cement. Even after taking advance payment from the builders, these manufactures are not supplying cement which is hindering the construction works. They by forming cartel seemed to be working together in controlling supply and prices. By decreasing the production of cement, it seems cement manufacturers are creating a false shortage of cement in the market. They made a cartel creating an artificial shortage of cement to increase the price and earn unjustified profit.

Suresh Garg, Secretary, CREDAI Western UP (Chapter of CREDAI-NCR), said “It is unfair that the cement manufacturers are indulging in practices that control the prices of cement. In every 10 to 15 days they are unduly increasing the rates of cement by Rs 20 to 25. This has resulted in huge hike in the rates of cement from Rs 190 per bag to Rs 300 per bag in last four months. Another setback is the decision of the cement companies to cut production by up to 70% at a time when developers hard pressed to deliver projects on time. There seems to be no grounds for restricting supply, which is adversely affecting the construction work.

A major part of the housing construction activity in the country is going on in NCR and Western UP – the region is at the centre of affordable housing development. The majority of the work in Western UP is going on in the regions like Noida, Greater Noida, Ghaziabad and Yamuna Expressway. These inappropriate price hike techniques will impact the construction works in these regions severely.

Corporate Comm India (CCI Newswire)