CCI to Conduct Pan-India Market Study on Cement Sector

To ensure fair competition and consumer benefits in the cement industry, the Competition Commission of India (CCI) has decided to conduct a pan-India market study on the cement sector. According to CCI, given the criticality of cement for many vital sectors, a well-functioning and competitive cement market is of utmost importance.

Objectives of the Study

The market study aims to investigate the structural features of the cement market, as well as potential collusion issues, to ensure fair competition and consumer benefits in this critical industry. It will also provide valuable insights into the state of the cement market across different regions of the country.

The study's objectives cover various aspects, from market structure to pricing dynamics, and through these objectives, the study aims to ensure a fair and competitive environment in the cement sector. Further, by engaging with stakeholders and identifying barriers to competition, CCI can determine the necessary enforcement and advocacy measures to benefit both consumers and the industry as a whole.

Methodology

This study will involve a combination of secondary research and consultations with stakeholders across the country, utilizing qualitative and quantitative data from primary and secondary sources. CCI will carry out the study with the assistance of an external agency to ensure a comprehensive and objective analysis of the cement market.

Significance of the Study

This will help CCI to make informed decisions and recommendations based on the study's findings. In August 2016, the fair trade regulator had slapped a penalty of over Rs 6,700 crore on 11 cement firms, including ACC, Ambuja, Ramco, and JK Cement, as well as the industry body Cement Manufacturers Association (CMA), for indulging in cartelization.

Last month, Union Minister for Road Transport and Highways Nitin Gadkari said big players in the steel and cement industry are indulging in cartelization to jack up prices. "...the steel industry and cement industry... whenever they get the chance, they make the cartel and increase the rate," he had said.

The CCI's decision to conduct a pan-India market study on the cement sector is a significant step towards ensuring fair competition and consumer benefits in this critical industry. The study's findings will help CCI to take necessary steps to address any anti-competitive practices and promote a healthy and competitive cement market in India.