The Confederation of Real Estate Developers’ Associations of India has moved fair trade regulator Competition Commission of India (CCI) against cement manufacturers for arbitrarily increasing cement prices.

In its submission to the Commission, Credai pointed out that the cost of raw material used in manufacturing cement has come down since January 2015 but manufacturers have not passed on this benefit to customers. 

Credai alleged that cement companies were working together in controlling supply and prices. Despite low demand, cement prices in major cities across the country have risen by 20-40 per cent in the last couple of months.

Perennial issue In 2012, the Commission had asked cement manufacturers to ‘cease and desist’ from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market.

CCI had then held that the cement manufacturers had formed a price cartel and imposed a fine of nearly ₹6,000 crore on them.                       

“It is unfair that cement manufacturers indulge in practices that control prices. CCI has warned the cement manufacturers’ association in the past as well, but it is unfortunate that they seem to be continuing with price and market manipulation,” said Getamber Anand, President, Credai National.

According to Credai, given the low demand, there seems to be no grounds for supply restrictions and the recent increases in cement prices . 

Recently, a unit of the builders’ association had unanimously decided to stop procurement of cement from companies such as Lafarge and UltraTech, which had unilaterally raised prices.

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