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