Cement rate creates differences between Builders and cement companies

The rising prices of cement have caused war between cement companies and builders. On a charge made by real estate dealers, verdict is expected from the competition commission of India next week. In the past six months the cement makers have hike their prices by 50 per cent reported by Builders. There has been 20 per cent rise after the Union budget. The makers blame the collusion for shortage of supply. According to cement companies the complaint is ridiculous. They say that prices are controlled by many factors like supply, demand, and excise duty and freight rates. There was a time when the cost of a 50 kg cement bag is Rs 170. Before the budget it was Rs 250 and now it has risen up to Rs 300. Excise duty has gone up by 2 per cent while the cement prices have risen up to at least 20 per cent. Due to the uncertainty in the prices cement makers are now introducing a new cost clause in their buyer- builder agreement. There was no cartelization and price of cement in the national capital region was not more than Rs 260 to 270 per bag. Cement is not a commodity hence prices of cement may fluctuate time to time. The price of cement accounts for three to four per cent of whole real estate project costing.