Crack whip on steel cartel, demands FICO

Tribune News Service

Ludhiana, June 16

The Federation of Industrial and Commercial Organisation (FICO) has sent a communication to Prime Minister Narendra Modi, demanding immediate attention on matter of rising steel prices.

The organisation said the government should take suitable steps to scrutinise the business strategies of steel companies to check if they had cartelised to jack up prices artificially.

Head of the organisation Gurmeet Kulas, general secretary Rajiv Jain and chairman KK Seth said the steel companies had been blaming the sharp rise in raw material cost on surge in iron ore prices.

“The steel manufacturing giants having monopoly are exporting as much as possible to get the maximum profits. The dependent domestic manufacturers are bearing the brunt as steel is available to them at exorbitant rates. The steep hike in steel prices is not market-driven. Stimulus packages have increased the consumption in global market,” reads the communication.

The prices of steel are at unprecedent highs owing to increased demand amid low allocation of production for the domestic market coupled with minimal imports due to import restrictions imposed by the Centre. — TNS

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