Will it bring curtains down on state cartel?

Chennai: At least twice in the last decade the government had tried its bit to protect the people from the cartel-induced spiraling cement price. Only the party in power has changed. And so did the nature of the schemes launched, but cement price continues to go through the roof. The only difference was the price. It was Rs 230-250 per 50-kg bag in 2008 (DMK regime) and '340-360 now. The DMK regime tried to offset criticism over rising retail price by selling it for Rs 200 then.

Chief minister Jayalalithaa has offered to sell it at Rs 190 per bag now. While it’s a tad too early to predict the outcome of the Amma cement scheme unveiled on Friday morning, statistics released by the government indicate that TN requires up to 18 lakh metric tonnes of cement per month. While the previous government supplied 15.91 lakh tonnes between 2008 and 2011, the Amma cement scheme promises 2 lakh tonnes per month.

CPI(M) MLA K. Balabarathy who was among the first to pick holes in subsidised cement sale, said the Centre should summon the manufacturers and tell them what price to sell at. “The government gives them land, raw material, water and, to an extent, also labour. So, it’s the state which must fix the price and not the profit loving manufacturers,” she reasoned adding, “The state, if necessary, should take help from Centre to fix the retail cement price.”

Former PWD minister and senior DMK leader Durai Murugan said, “When the opposition made a hue and cry about rising retail cement price, kalaignar (then CM) invited the manufacturers and threatened to import cement from China if they don’t sell it at Rs 200 per bag. They agreed. Then came the GO in January 2008 and we sold over 15.91 lakh tonnes in three years.” Former Madras institute of development studies (MIDS) professor Jayaranjan argues, “the problem can’t be fully solved if the state sells cement or any other goods. The regulatory bodies ought to be empowered like in western markets. Till then the cartels will continue to dictate pricing.”