Finance Minister Nirmala Sitharaman on Friday told Competition Commission of India (CCI) officials that while cartelisation is likely to pose a threat, there is a need to ensure that there is no monopolistic or dualistic tendency for price hikes.
In today’s context, when the government is pushing for infrastructure development to spur demand, cartelisation is likely to pose a threat, a CCI statement quoted Sitharaman, who served as the regulator’s 13th president in the capital. Spoke at the Annual Day celebrations.
Cartelization refers to an understanding between market participants on pricing, production or supply that adversely affects competition, in areas with limited players or where players have cross-holding or where industry bodies send price signals to businesses .
The minister underscored his concerns that despite India having great potential to meet both domestic and export demands, input costs are rising, the statement said. Sitharaman highlighted that there is a global shortage of commodities due to the pandemic, and now, after the war in Eastern Europe, the supply chain has been adversely affected. The Minister said that there is a need to look into these and ensure that there is no monopolistic or dualistic trend leading to price rise and supply side manipulation.
Sitharaman urged CCI to understand the technical nuances of the digital age and whether these markets are being used in a fair, effective and transparent manner for the benefit of consumers. He urged CCI to always be sensitive but firm in its approach.