400 per bag of cement in June, reached Rs 815 in January

When the government cement industry did not produce regularly, the private cement did 'syndicate'.

माघ ४, २०८१

राजु चौधरी

400 per bag of cement in June, reached Rs 815 in January

Recently, the price of cement, which is essential for the construction of physical infrastructure, has increased. Although there is no specific reason, the data shows that the price has doubled in 6 months. In July, the price of cement was Rs 400 per bag. Rajan Poudel, Director General of Commercial Supply and Consumer Protection Department, said that the price doubled after 6 months. Currently, the price of a bag of cement is up to 815 rupees.

The price of cement has become arbitrary, the industrialists decide the price. They cited limestone, loadshedding, transportation costs, etc. as reasons for the price hike. As the winter ends, there is a game to reach Rs 1,000 per bag," said Poudel, "this has caused problems for the common people." But consumers cannot be cartelized. As they cited loadshedding, transportation expenses, etc. as reasons, no action has been taken under the Consumer Protection Act. For this, the price can be controlled according to the Competition Promotion and Market Protection Act 2063.

Price can be controlled by one industrialist increasing the price by another. But the meeting of the board as directed by the Act has not been held. Nothing has been done by the Act. The act was made to discourage carteling. But the board was not formed. That's why there was a problem,' said Paudail. 

Premlal Maharjan, president of the National Consumer Forum, said that the price of cement is about to reach 900 rupees per bag. The price of cement, essential for physical infrastructure, is increasing to 900 rupees. This is very unnatural," he said. "When the government-owned Hetaunda and Udaipur cement industries did not regularize their production, a private syndicate was seen." 

As the condition of the government cement industry is miserable, the price is seen in the market. After the situation of the two cement industries deteriorated, a five-member expert team under the coordination of Engineer Khagendra Bahadur Basnet of the Ministry of Industry, Commerce and Supply has suggested to improve management by bringing in strategic partners in Udaipur and Hetaunda Cement. It has also been suggested that both industries should be merged to make them competitive. 

The Industry and Commerce and Labor and Consumer Welfare Committee under the House of Representatives sent a letter to the Ministry on 15th December 2080 to study the current situation of Udaipur and Hetaunda Cement, which is almost closed. After that, the ministry made a decision at the secretary level on December 16 and formed a 5-member study team and made a report. In order to compete with the private sector, it is also suggested to merge both industries and operate in a new way. But still no progress. Chairman Maharjan says that the private cement industry is cartelizing for the same reason. 

Maharjan said that the illegal price increase should be stopped immediately by the cement businessmen. "Nepal Electricity Authority is going to artificially raise the price artificially by showing the reason that it is going to collect the fee for using the dedicated line. This is an illegal act," said Maharjan, "The cement industry that increases the price should be brought under the ambit of action." The Federation has protested against it by holding a press conference on Wednesday. "Although the price of any raw material related to the production of cement, sand and other construction materials has not increased, the price of cement has increased by 200 rupees per bag in a month due to cartelization and black market," the statement issued by the federation said, "the current price increase should be canceled immediately." Legal remedies should be sought for those involved in the black market.'  Since

, the cement industry has always explained that they cannot sell at a loss. According to them, Huasin Cement Industry operating in Dhading reduced the price and others also reduced the price. 

It is not always a matter of selling at a loss. Even now we are not making a profit, we have only recovered the past losses," said an official of the Cement Production Association who did not want to be named. "We have only slightly increased the price to reduce the losses. Price varies according to cement. Now cement per bag has been sold from 750 to 815 rupees.'

राजु चौधरी चौधरी कान्तिपुरमा उद्योग, वाणिज्य तथा आपूर्ति एवं उपभोक्ता, कृषि तथा आर्थिक बिटमा लेख्छन् ।

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