New Delhi, Nov 3 (PTI) To ensure fair competition and consumer benefits in the cement industry, the Competition Commission of India (CCI) has decided to conduct a pan-India market study on the cement sector.
According to CCI, given the criticality of cement for many vital sectors, well-functioning and competitive cement market is of utmost importance.
The fair trade regulator on Friday said that it has decided to conduct a pan-India market study on the cement sector.
“Cement is a critical input in crucial sectors of the economy such as housing and infrastructure.
“These sectors have well-known forward and backward linkages with a range of other industries, thereby having the potential to influence the overall growth trajectory of the economy,” according to an official release.
The market study aims to investigate the structural features of the cement market, as well as potential collusion issues, to ensure fair competition and consumer benefits in this critical industry. It will also provide valuable insights into the state of the cement market across different regions of the country.
The study’s objectives cover various aspects, from market structure to pricing dynamics, and through these objectives the study aims to ensure a fair and competitive environment in the cement sector.
Further, by engaging with stakeholders and identifying barriers to competition, CCI can determine the necessary enforcement and advocacy measures to benefit both consumers and the industry as a whole.
This study will involve a combination of secondary research and consultations with stakeholders across the country, utilising qualitative and quantitative data from primary and secondary sources.
CCI will carry out the study with the assistance of an external agency to ensure a comprehensive and objective analysis of the cement market.
This will help CCI to make informed decisions and recommendations based on the study’s findings.
In August 2016, the fair trade regulator had slapped the penalty of over Rs 6,700 crore on 11 cement firms, including ACC, Ambuja, Ramco and JK Cement, as well as industry body Cement Manufacturers Association (CMA), for indulging in cartelisation.
Last month, Union Minister for Road Transport and Highways Nitin Gadkari said big players in the steel and cement industry are indulging in cartelisation to jack-up prices.
“…the steel industry and cement industry… whenever they get the chance, they make the cartel and increase the rate,” he had said. PTI HG HVA
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