Minister rejects demand:

'No cement price hike'

Suraj A Bandara

Minister Johnston Fernando

Internal Trade Minister Johnston Fernando while rejecting the demand for a price increase of a 50 kg bag of cement by Rs.35 as requested by three cement companies recently, has instructed the Consumer Affairs Authority (CAA) to raid traders who sell cement beyond the controlled price of Rs 750 and bring them to book.

The decision was taken by the minister after a lengthy discussion with the relevant officials and authorities at the ministry auditorium yesterday.

CAA sources also said that it had no plans to increase cement prices despite illegal price hikes and as instructed by the minister, the CAA will expedite islandwide raids to crack down on cement hoarders and those selling cement beyond the stipulated price.

Legal action will be taken to curb illegal price hikes, but, the regulated price would not be raised. Cement price has been capped at Rs. 750 - the regulated price for a 50 kg bag - although the industry has called for a revision of price to Rs. 785.

The minister pointed out that the present cement shortage was an artificial one and alleged that certain organized groups are attempting to sabotage the country's progress by resorting to such actions.

Tokyo Cement, Lafarge and Ultratec recently made a request to the CAA that the price of cement be increased, citing an increase in production costs.