18th April

Cement Cartelization?

The article tries to find an answer to whether the accusation of builders on the cement manufacturers of cartelization is actually true or not. It also advocates for greater conviction of Competition Commission to not only discover cartels but also chase them down.

While builders have accused cement manufacturers of cartelization, the cement producers cite demand increase, especially in the rural market, as the primary reason for increased prices. The argument also seems valid considering the fact that the rural market has been insulated from the slowdown owing to farmer loan waivers, disbursement of pay commission arrears, rural work programs and good farm incomes. Cement industry has often been accused of cartelization. More then 50% of industry controlled by the top five players ACC-Ambuja Cements, Grasim-UltraTech and India Cements while the rest is distributed among large number of players. Thus, the big players, theoretically, are in a position to dictate prices. However, such accusations have to be proven more directly, through confession of the players itself of the price fixing. Although Competition Commission has all the necessary tools to check cartelization, it lacks the conviction to act against those involved in the cartels after discovering them. 

Cartels are dangerous in economic slowdown, as evident from the fact that relaxation in anti0trust laws in US lead to prolongation of the Global Depression. Thus the competition authority needs to be watchful.

Democracy and its detritus

The article advocates resolution of some of the elements that were successful in creating a bloody day on April 16, the first phase of elections, expresses grief over the cynicism, violence and dirty politics that elections bring along with it.

62% voters turn around for 124 LS seats is a very positive figure considering the violence spread by Maoists that killed 16 people despite heavy deployment of paramilitary forces. However, this election brought with it some of the nastiest mudslinging among the aspirants, coupled with hate-mongering on several occasions. However, the most distressful was the violence by Maoists that claimed 16 lives. It is big time we need to address the issue of Maoists if these people have such guts to act despite heavy security. There is an objective of forming a representative government, however, it would see a lot of post-poll break ups and make ups before the final government takes on the power.

However, the season of violence and utter cynicism has started once again among the stirring aspirants as they go for the battle.