India is the world's second largest producer (22.44 Crore tonnes per annum) of cement, after China, in the world. Tamil Nadu is the 3rd third largest cement producing state, after Andhra Pradesh and Rajasthan, in the country. But, cement prices in Tamil Nadu are among the highest in the world.
According to Mr. N Nandakumar, Secretary, CREDAI ( Confederation of Real Estate Developers Association of India). - TN chapter,'' Against an installed capacity to produce 34.38 million tonnes of cement per annum in the Tamilnadu, about 20 major cement plants and 4 small plants manufacture only 20 million tonnes per annum. Underutilization of the installed capacity, cartelization, syndication and rationing of supply have resulted in a rapid rise in cement prices,"
Cement costs Rs. 290 - Rs.. 300 per 50kg bag in Tamil Nadu. In the North India, it is available at Rs. 190- Rs. 200 per bag.
Cement being a decontrolled commodity, state and central governments can do little to regulate prices.
Mr. Nandakumar also said "The state, which gives licence for mining limestone, has every right to interfere if the cement manufacturers indulge in unfair trade practices. If they do not fall in line, the issue should be escalated to the CCI (Competition Commission of India)"
Cement consumption is growing at 7% per annum world over, in India it is increasing at 9%. The volume of cement entering the international trade is just 6-7% of the total global production. The rest is consumed in the respective domestic markets. Large-scale imports are the only immediate solution to tide over the current crisis.
According to Mr. N Nandakumar, Secretary, CREDAI ( Confederation of Real Estate Developers Association of India). - TN chapter,'' Against an installed capacity to produce 34.38 million tonnes of cement per annum in the Tamilnadu, about 20 major cement plants and 4 small plants manufacture only 20 million tonnes per annum. Underutilization of the installed capacity, cartelization, syndication and rationing of supply have resulted in a rapid rise in cement prices,"
Cement costs Rs. 290 - Rs.. 300 per 50kg bag in Tamil Nadu. In the North India, it is available at Rs. 190- Rs. 200 per bag.
Cement being a decontrolled commodity, state and central governments can do little to regulate prices.
Mr. Nandakumar also said "The state, which gives licence for mining limestone, has every right to interfere if the cement manufacturers indulge in unfair trade practices. If they do not fall in line, the issue should be escalated to the CCI (Competition Commission of India)"
Cement consumption is growing at 7% per annum world over, in India it is increasing at 9%. The volume of cement entering the international trade is just 6-7% of the total global production. The rest is consumed in the respective domestic markets. Large-scale imports are the only immediate solution to tide over the current crisis.
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