NIMCET 2016 — English PYQ
NIMCET | English | 2016Questions 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 tiles and cement paint manufacturing units. These consumers, mostly on the small scale, are today facing a major crisis because of a significant increase in the price of white cement during a short period. The present annual licensed production capacity
of white and grey cement in the country is approximately 3.5 lakh tonnes. The average demand is 2 — 2.5 lakh tonnes. This means that there is an idle capacity to the tune of one lakh tonnes or more. The price rise is, therefore, not a phenomenon arising out of inadequate production capacity but evidently because of artificial scarcity created by the manufacturers in their self-interest. The main reason for the continuing spurt in cement price is its decontrol. As it is, there is stiff competition in the cement paint and tile manufacturing business. Any further price revision at this stage is bound to have a severe adverse impact on the market conditions. The government should take adequate steps to ensure that suitable controls are brought in else it should allow the import of cement.
Why is the price of cement going up?