BAI calls for mechanism to regulate prices, India

BAI calls for mechanism to regulate prices, India
Published: 13 October 2010

Shocked over the cement prices going up by a hundred per cent within a month, the Builders’ Association of India has urged the State government to intervene immediately to control the soaring prices by introducing a regulatory mechanism on the lines of Telecom Regulatory Authority of India (TRAI).

Briefing reporters  on Tuesday, Radhakrishnan, spokesperson for the association, said: “This increase doesn’t have any basis, as neither the prices of raw materials for cement nor the power tariff has gone up in recent months,” he pointed out adding that the price rise had hit the construction industry to the core.

Charging that the cement manufacturers were responsible for escalating the prices by creating an artificial scarcity, he said, “Cement production has plummeted by 40 per cent in the State for the sake of scarcity of materials.”  The manufacturers have created a cartel for making lump sum profits in this manner, which has made an impact in the neighbouring states of Andhra Pradesh, Karnataka and Kerala.

Radhakrishnan claimed that the cement prices have not only affected the construction activities of common people, but also that of the public constructions.

“The Government must import its cement requirements besides warning the private manufacturers against unprecedented price hike to solve the prevailing crisis,” he said.