The real-estate developer’s association CREDAI has filed a complaint with the Competition Commission of India (CCI) against cement manufacturers that it claims have been manipulating the price of cement. It believes that the cement firms are working in tandem to control both supply and price, and has also highlighted the violation of CCI’s cease and desist order of 2012.
According to CREDAI, the cost of raw materials has decreased between January and September 2015, yet customers are not feeling this benefit. Housing and other real estate sectors make up nearly half the cement demand in India, yet despite a huge slowdown in this area decreasing demand the prices of cement have jumped by 20 – 40%.
Last month CREDAI’s NCR chapter decided to stop buying cement from companies like Ultratech and Lafarge for unilaterally increasing cement prices in the last month.
Having accused these companies of anti-competitive business practices, CREDAI has urged CCI to look into the grounds for supply restriction and the recent price increase in cement given the low demand.
Edited from various sources by Rebecca Bowden
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