Ad Here  
Preserving for the future Sri Lanka votes for change Focus on quality of power - its only around 170-180V Quality education through the PPP mode Tribute – M V Murugappan Diamond jubilee of Egmore Samskrt School Kinetic Karnataka A professional at the helm of IRDA... A yen for wastage… Measuring roof tops in terms of KW/MW Shipping woes of Chennai companies Paytm karo... Shanti and Sadhana through Music An enemy’s enemy is a friend The power-full Hindujas Wanted: a second airport for Chennai More Shakthi to Das’ elbow Music happens Recognition to role of NBFCs.... A Grand Finale for SN’s MS centenary at the US… Cutting the nose to spite the face EEC at the National Media Centre B H Kothari - a tribute SoA @ 80 Tribute – UCAL Selvan… Moily’s bold thrust Tatas moving out of urea production... Cement prices continue to rise… Tough task taking states together PPP mode for upgrading Corporation Hospitals A C Muthiah – his munificent bequeaths to science Auto components surge… Godspeed, Chief Minister JJ L&T- the specialty of special purpose vehicles Haul over the coal Solar thermal shines… Rs.1600 crore paper board plant of TNPL Liberal imports idling indigenous capacities Alexa – Talking Wikipedia Welcome changes that testify to Jayalalithaa’s return to health Why this malaise in medical education? Convulsions in The Hindu Kulandai was a giant No engine for this car Online not in line with brick and mortar businesses... TN accounts for the largest recruits by the IT sector Tribute – Manikam Ramaswami The why of tax incentives F C Kohli - his concerns all embracing Parliament in paralysis... Sweeter prospects for sugar Tatas moving out of urea production... Mu Sigma – is no more A friendly business group Road development slows down GNS - 100: our first subscriber Reliance’s TV – 18 ready to launch Tamil News Channel The rise and rise of KCP IPL type auction for VCs? Like Hinduism: many paths to reach God... Breaththrough in malaria control Airlines in India: cost and space Bihar – Nitish Kumar adopts the Lalu model Eternal support for capitalisation of PS banks GM Technology at last! The sea- saw battle continues... A Grand Finale for SN’s MS centenary at the US… Boy, can you beat these? The Gulf aviation boom Towards speedy justice Where a state respects its litterateurs… When online building permits work…. Plummeting profits of PSBs Pharma – overdose of copying West Bengal: mindless malignancy Russi Mody – a tribute No mega rail project for Tamil Nadu When the President was rendered homeless… Don’t seem to feel the pulse… Of course, Gujarat is vibrant Banning booze... Gas is the way forward An inexplicable neglect Rahman at CIC Maximising the micro pricing … Wise Presidents Come elections, come advertisements... Make standards certification mandatory... A welcome initiative by the judiciary Gay abandon in pricing How Air-India loses customs... S V Raju – a ‘good’ true liberal Editor's Notes Poor representation for Kerala and TN in Cabinet Secularism and anti-Hinduism This scant respect for Law When small is no larger beautiful.. Land reclamation from sea appears cheaper! No Maha Koottani in TN... Editor's Says Welcome focus on core competence ONGC at KG Basin R Sridhar steps down as CEO of Shriram Capital Return to king coal for urea... Naidu’s return augurs well for Seemandhra Valli, they are more marginalised Mersal magnified Noble nonagenarians... L&T: focus on infrastructure and more infrastructure… MHC should not return to its old indisciplined ways Another Indian music maestro at the UN CIPET hqrs to stay at Guindy – for the present? Permanent secretariat for TN GIM The ‘Jayanthi Tax.’ When Ratan Tata visited SRM The rise and fall of Annamalai University Shaming of Tamils by Tamil farmers at Delhi to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Scientists urged to take up farmer-oriented research TN-leverage strength of BHEL, NLC... TGS- The king storyteller The Jan Dhan bonanza Delhi returns to BJP Things happen by accident and not by design... For whom the bell tolls? Why land prices zoom in TN? Inflation: are we emulating Argentina and Brazil? Modi and the lady A think tank for Chennai Not just in-laws (and outlaws); they’ve renowned academics at the helm! Insurance companies bleeding, yet no decision on increasing FDI limit! Robber barons everywhere Vibrant Gujarat CSR and CMI: promise of another Srinivasan Ramanujan... Five star activism stalls development activity Strengthen the base... PC’s preference for professionals Streamlining mandatory third party cover Where is Rajaji? Increasing non co-operation of state leaders The few handicaps... Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai TELANGANA at last…BUT TIAM turns a full cycle Fortune for Indian Airlines …and of a popular trade leader Solar, solar everywhere … Fuel for thought EVM is tamper-proof Infrastructure funding – lessons learnt Marketing expert Balagopal is no more The star of Spencers is no more Align crops to agro climate endowments… Tax agriculture Nuclear power at the nucleus Welcome thrust on trade in Modi’s foreign visits... A proud Madrasi Computation of GDP – conundrums continue When nations steal growth from one another… Kudos to NDTV... There was flood of milk. Reason: no milk commissioner! IPL - no surprise this scam Multi-faceted Venkat CRS, a jewel among managers, is no more. Dr C Rangarajan returns to Chennai TN – agglomerate land holdings without alienating ownership Lesson from Chandrababu Naidu A rich pool of talent not utilised…. Quality silica from Neyveli Should we change the official year? New IT products of Ramco in the pipeline… Lalu’s envy, India’s pride Whistle-Stop Tour of Raghuram Rajan Revive development banks... Muffled voices for merit… CII projects higher growth… Revving up the manufacturing sector Telangana in top gear… WTO Meet: resolved to meet again China invests in India Small units prefers to remain small... Put expensive assets created to use... Shale gas and its shallow future Excel Generators provide the vital back-up More tributes to GR The balancing act All eyes on Sankara Nethralaya Protest masters... The brown list of Venkitaramanan Adapt Vajpayee dinner diplomacy Naidu will soon build a new Hyderabad The nuclear option More heat than light Discoms deserve better… Air Asia India will set new benchmarks for budget travel Limit foreign borrowings to hi-tech, export potential projects... Odisha: spectacular win by Naveen Patnaik Fall in crude prices help in oil sector reform Polls and promises Tribute Adharma of opposition politics For whom the MIDS bell tolls? Fortune 500 review Cleaning Ganga – relocate tanneries and install electric crematoria More Shakti to resource mobilisation... Poor quality of university VCs Contrarian cousins Delhi is distant… Readers' Mail Padma Bhushan for A Ramakrishna Funding the un-funded The Ports’ Pasha expands into Tamil Nadu Modi storms Silicon Valley Sweet news for TN sugar mills He continues the focus on social amelioration The Swadeshi Trump The ‘Ayyo-yes’ is no more London, London Narayan Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Engineering seats go abegging Roaring Ro-Ro facility An informal presentation - analytical, forward locking... A more liberated TN… Build close rapport with business leaders Colour-Chem’s colourful KRVS Bihar elections - the Rajaji formula worked Intellectual of rare qualities A glass full of corruption S Ramanathan – a versatile musician, musicologist Delhi Chalo... Delhi is distant He saved millions from starvation... Medical costs hit the roof... Welcome GST Remembering Indira Sivasailam... Which side are you, Montek? Building loyalty through the stomach When TN politicians can emulate Kerala's Tihar, Puzhal not different from Parappana Agrahara Making ‘my Amaravati’... IAS invades NDDB... Demise of a media baron... Silver Years of Madras Musings Waning interest in public discussions…
Gay abandon in pricing

Even while arguing the case for such protection I point to the need for higher level of cost efficiencies in our manufacturing systems. For long Indian steel, Indian cement and wide range of commodities  manufactured in the country were cheaper than imported goods. Post 1991, this comfort has vanished. Even while capacities expanded massively, there has been a gay abandon in pricing. Real estate has been the most atrocious culprit as land prices have hit the roof. Price of every commodity needed for construction – cement, steel, sanitaryware, electrical items, bricks and even sand has hit the stratosphere. From the early 1980s to date, cost of construction has zoomed from Rs 300 per sq. ft. to close to Rs 3000 per sq.ft.

Look at one component of this, cement: its price has shot up from Rs 28 per bag of 50 kg to Rs 400 today!  And manufacturers complain of steep fall in demand which forces them to operate at around 60 per cent of capacity. So you witness a curious phenomenon: prices rise when there is huge demand and capacity utilisation zooms to 110 per cent. And you also suffer a huge price increase when capacity utilisation drops to 60 per cent! This is true of steel whose prices shot up from around Rs 3000 a tonne to close to Rs 50,000 a tonne in the above period.

At the retail level there is such a gay abandon in prices with little concern either on the part of the policymakers or industry. This needs quick and immediate attention.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236