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Question from 101 to 104 are based on the following:
White cement is the basic raw material for producing cement tiles and cement paint which are used extensively in building construction. The main consumers of white cement are therefore,cement title and cement paint manufacturing units. These consumers, mostly in the small scale sector, are today facing a major crisis because of a significant increase in the price of white cement during a sort period. The present annual licensed production capacity of white and grey cement in a country is approximately 3.5 lakh tones. The average demand of 2-2.5 lakh tones. This means that there is idle capacity to the tune of the lakh tones or more. The price is therefore, not aphenomenon arising out of inadequate productioncapacity but evidently because of artificial scarcitycreated by the manufactures in their self interest.The main reason for the counting spurt in cementprice is its decontrol. As it is, there is stiffcompetition in the cement paint and tilemanufacturing business. Any further price revisionat this stage is bound to have a severe adverseimpact on the market conditions. The Governmentshould take adequate steps to ensure thatsuitable control are brought in. Else it shouldallow import of cement.
White cement is the basic raw material for producing cement tiles and cement paint which are used extensively in building construction. The main consumers of white cement are therefore,cement title and cement paint manufacturing units. These consumers, mostly in the small scale sector, are today facing a major crisis because of a significant increase in the price of white cement during a sort period. The present annual licensed production capacity of white and grey cement in a country is approximately 3.5 lakh tones. The average demand of 2-2.5 lakh tones. This means that there is idle capacity to the tune of the lakh tones or more. The price is therefore, not aphenomenon arising out of inadequate productioncapacity but evidently because of artificial scarcitycreated by the manufactures in their self interest.The main reason for the counting spurt in cementprice is its decontrol. As it is, there is stiffcompetition in the cement paint and tilemanufacturing business. Any further price revisionat this stage is bound to have a severe adverseimpact on the market conditions. The Governmentshould take adequate steps to ensure thatsuitable control are brought in. Else it shouldallow import of cement.
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