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

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