Illustration: Ajay Mohanty
The Competition Commission of India (CCI) has launched a pan-India market study on the cement sector, which is prone to collusion due to its structural features, the antitrust watchdog said.
Considering the critical importance of cement to many vital sectors, the CCI will conduct a fact-finding exercise to develop a comprehensive understanding of the functioning of the cement market across different regions in India and the state of competition.
CCI said some of the objectives of the survey are to study the market trends including movements in cement price, costs, production, capacity, capacity utilization and profitability. The study will also examine the evolving market structure of the sector, as well as pricing in trading and non-trading segments, among other issues.
“Cement is a crucial input in crucial sectors of the economy, such as housing and infrastructure. These sectors have known forward and backward linkages with a range of other industries, giving them the potential to influence the overall growth trajectory of the economy,” the CCI said.
The research will be a combination of secondary research and stakeholder consultation.
The cement companies have often been accused of cartel formation.
In 2016, CCI had found 10 cement companies and the Cement Manufacturers Association in violation of the provisions of the Competition Act, 2002 that prohibit anti-competitive agreements, including cartels.
First print: November 3, 2023 | 8:42 PM IST