Govt inaction blamed for cement price rise
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Thiruvananthapuram: Kerala's consumers are said to pay the highest price in the country for cement, and their being forced to pay such a heavy price is attributed to government inaction. Absence of market intervention has been blamed for the unusual rise in cement prices.
In other states, the governments have been promoting and strengthen public sector undertakings in order to arrest the rising price of cement, whereas in Kerala the only public sector firm, Malabar Cements is steeped in corruption, and is adopting an approach favourable to private players in the cement market.
The market share of Malabar Cements is a mere 8% of the state's total, and this is seen as the loophole by which private companies get a free hand to jack up prices.
In Tamil Nadu, two public sector companies function effectively, namely Arasu and TNPL. Further, the government purchases cement from private companies and sells it under the rebranded name "Amma" at an affordable price. In Karnataka also, the intervention by public sector is strong and effective.
It is because of the absence of any such action, that even in Kerala's difficult times during the flood and its aftermath, cement companies are trying to raise prices and amass huge profits. In the light of complaints on this score, the government is calling a meeting of cement companies.
Industries Minister EP Jayarajan is calling a meeting of paint companies on 6 Sep, which will be followed by that of cement firms. Reports circulating say that the companies are hurriedly trying to raise cement price before the meeting, so that they can then lower it as if in response to the government's call, and yet maintain a high price. Currently, cement price in Kerala is higher than that in other states by about Rs 100 per bag.
At the same time, a call for control of prices of construction materials has been aired by bodies in the field. They are going to meet Industries minister collectively and their main demand is to have a regulatory board to implement a price control.