The Hindu Business Line : ‘Price control has no place in free market’

Mumbai/Delhi/Chennai, May 2 The cement industry feels that moves to control prices have no place in a free market, even as the Centre is likely to meet industry representatives to discuss the issue of rising cement prices.

Industry representatives felt that cement prices have gone up over the last one year because of rising input costs. There is a continuing mismatch between demand and supply.

Mr Vinod Juneja, Managing Director, Binani Cement, said “The Industries (Development and Regulation) Act stands no place in a free economy.

“It should have been repealed long back. Inflation is a global phenomenon and the contribution of cement to it is negligible.”

‘cut duties’

If the Government was keen on bringing down prices, it should have cut excise duty by 5 per cent, as demanded by the industry.

Mr Shailendra Choksi, Director, J.K. Lakshmi Cement, said “In the last one year, cement prices were up just 2.7 per cent against an increase of 20 per cent in input cost, contributed mainly by factors which were under Government control.”

Coal, freight and excise duty have pushed up cost of production. Coal prices were up 130 per cent, freight 6.5 per cent and excise duty 40 per cent in the last one year, he said.

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