Ban cement export: builders' association

By Staff
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Google Oneindia News

Mumbai, Apr 11 (UNI) The Builders Association of India (BAI) today called for a ban on cement exports and has asked to reduce import duty on it from the existing 15 per cent to five per cent. Besides, there was also a need to appoint a cement regulatory authority, the BAI stated, while highlighting the fact that spiralling prices of cement had pushed up construction costs in the country.

BAI Chairman Mumbai Anand Gupta told journalists that cement prices which were around Rs 125 to Rs 145 per bag in 2004-05 had risen steeply to Rs 220 per bag now. ''Even at this high price, cement is not easily available. Cement producers demand advance payment and delivery is given only after 10-15 days,'' he alleged.

Pointing out that cement costs constituted anywhere between eight per cent to 30 per cent of the total cost of any project depending upon the type of work involved, Mr. Gupta charged the cement industry of ''profiteering''.

''In order to improve their falling profitability, cement producers have formed an arrangement to jack up the price per bag without disturbing production,'' he alleged, adding that ''cement manufacturers are choking up supply in big consumption centres at different times thereby creating artificial shorage.'' Stating that the steep increase in cement prices has adversely affected the construction industry by not only wiping out its profits but in a majority of cases causing even losses, Mr Gupta called upon the authorities to initiate action against erring cement players under the MRTP Act.

UNI JJ KU VKG2158

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