Himachal wants cement put on controlled commodity listJanuary 2nd, 2012 - 7:53 pm ICT by IANS
Shimla, Jan 2 (IANS) Himachal Pradesh Chief Minister Prem Kumar Dhumal Monday asked the central government to include cement in the controlled items list within the Essential Commodities Act to check its rising prices.
In a letter to Prime Minister Manmohan Singh, Dhumal said cement produced in the state was available at cheaper rates in neighbouring Punjab and Haryana than in the hill state.
“In 2002, cement was decontrolled under the Essential Commodities Act, 1955. It was presumably done to facilitate market competition in cement production and marketing on the analogy of government of India’s general policy of economic liberalisation,” he said.
This policy, the chief minister said, had harmed consumers instead of benefiting them.
“In a free market economy, it is assumed that the market forces would throw up the ideal retail selling price of cement at any given location on account of competition amongst several suppliers. Such ideal free market conditions did not exist at any locations in Himachal,” he said.
“The cement companies have been fixing retail selling prices at various locations in the state in an arbitrary and irrational manner and as a result, an ironical situation has arisen while three major cement producing companies were located in the state,” wrote Dhumal.
He urged the prime minister to bring pricing back within the purview of the Essential Commodities Act.
The state has four mega cement plants - Barmana (ACC), Darlaghat (Ambuja), Rajban (CCI) and Bagha (Jaypee). The aggregate capacity is 10.66 million tonnes a year
During the recently concluded state assembly session, Food and Civil Supplies Minister Ramesh Dhawala said cement rates in the state vary from company to company and the freight rates were high.
He said a bag of cement should not cost more than Rs.250, inclusive of all taxes. But Ambuja Cement was selling a bag of cement from Rs.309 to Rs.350, ACC from Rs.305.98 to Rs.354, and Jaypee from Rs.295 to Rs.326.
The cement companies say high transportation cost in the hill state was the reason behind the higher prices.
- Include cement in essential commodities: Dhumal - Dec 22, 2011
- Cement price in Himachal reduced - Jan 05, 2012
- Himachal truckers increase freight charges - Sep 18, 2012
- Himachal's cement production to go up - Mar 22, 2012
- Rs.6,000 crore penalty on 11 cement firms for price fixing (Lead) - Jun 21, 2012
- Competition panel levies Rs.6,000 crore penalty on cement firms - Jun 21, 2012
- Truckers strike continues in Himachal - Oct 20, 2010
- Himachal favouring business group, says Congress - Apr 04, 2011
- Graft, scams hog limelight in Himachal assembly (Himachal Pradesh Newsletter) - Apr 01, 2012
- Ambuja Cements' third plant commissioned in Himachal - Mar 28, 2010
- Retail chain to sell Brand Himachal - Sep 16, 2011
- Heated exchanges in Himachal house on pulses scheme - Mar 28, 2012
- Food prices: State to sell onions, crack down on hoarders - Jan 13, 2011
- Himachal earns over Rs.130 crore from cement firms - Apr 06, 2011
- Check cement price rise in Chhattisgarh, demands Congress - Nov 22, 2011
Tags: assembly session, cement companies, cement plants, cement production, chief minister, civil supplies minister, economic liberalisation, free market economy, freight rates, government of india, haryana, locations in himachal, manmohan, manmohan singh, market competition, prime minister manmohan, prime minister manmohan singh, retail selling, rs 250, state assembly