It is an action to address concerns over rising cement prices at the retail level. The Chamber of Cement Manufacturers has reached an agreement with the Ministry of Trade and Industry (MoTI) to publish recommended distribution and retail prices for cement. This collaborative effort is to stabilize prices and prevent negative economic implications.
The deal was negotiated during a meeting between the trade minister and the leadership of the Chamber.
A joint statement issued by the MoTI outlined key points of the agreement:
Regular consultative meetings:
Both parties agreed to hold consultative meetings with industry players regularly, particularly before individual companies announce ex-factory price increases. This collaborative approach aims to foster transparency and open communication within the industry.
Exploring uniform pricing formula:
The Chamber and the Ministry will collaborate to explore the possibility of introducing a uniform cement pricing formula. This formula will ensure consistency and uniformity in retail pricing across the country, considering key cost variables.
Monitoring distributors and retailers:
The Ministry emphasized the importance of stakeholders monitoring and controlling distributors and retailers, particularly in terms of recommended ex-factory price margins for various product grades. This measure is intended to prevent unjustifiable price increases.
Adoption of quality standards:
Both parties committed to actively adopting market-wide quality standards and weights for cement products. This step aims to reduce the production and distribution of substandard products, ensuring that consumers receive quality cement.
The Minister for Trade and Industry, Mr. K.T. Hammond, urged stakeholders to be mindful of the widespread effects of price increases and emphasized the importance of justifiable and reasonable price adjustments. The Ministry assured the public that necessary measures, in collaboration with the Chamber of Cement Manufacturers, would be implemented to maintain reasonable and justifiable price levels.
This collaborative effort is a commitment of both the government and industry players to address concerns related to cement pricing and ensure the stability of prices for the benefit of consumers and the overall economy.
