India: The real estate developers' association Credai has moved the Competition Commission of India (CCI) against cement manufacturers that it claims have unduly increased the cost of cement. Credai has also highlighted the violation of CCI's 'cease and desist' order of 2012 by cement manufacturers, according to a statement from the industry body.
Credai said that the cost of raw materials used in cement manufacturing fell between January 2015 and September 2015, but that cement companies have not passed on the benefit to customers. Hinting at a cartel-like operation, it was also alleged that cement companies seem to be working together to control supply and prices. Housing and other real estate sectors account for nearly half of the cement demand in India. Despite low demand, cement prices have jumped by 20 – 40% in top cities across the country in the past couple of months.
"It is unfair that the cement manufacturers indulge in practices that control the prices of cement. The CCI has warned cement manufacturers in the past as well, but it is unfortunate that they seem to be continuing with their price and market manipulation," said Credai national president Getamber Anand.
At its annual general meeting in September 2015, Credai's board took the decision to stop procurement of cement from companies like UltraTech, Lafarge and others that unilaterally increased cement prices in the past month.
