As the public grapples with yet another increase in cement prices, marking the fourth hike in just over two years, voices are rising for an end to Trinidad Cement Ltd’s (TCL) monopoly in the market.
The initial increase occurred in December 2021, with subsequent hikes implemented each year thereafter, resulting in a cumulative surge of over 30 percent.
Against the backdrop of scorching midday sun on Harris Street, San Fernando, on Monday, Shammie Ramdass, 55, toils to cast a vehicle ramp, using TCL premium plus cement. Meanwhile, Bickram Ramnanan, 78, oversees the project from his pickup tray.
Expressing frustration, Ramnanan criticizes TCL’s dominance, stating, “They just have a monopoly and they’re doing what they want to do. It’s not fair to the construction business.”
Many, like Ramdass and Ramnanan, believe that Rock Hard Cement, imported from Turkiye, offered superior quality and cost-effectiveness until its cessation of operations in 2021, citing challenges from government and discriminatory policies.
TCL’s recent price hike, announced earlier this month, saw increases of 6.63 percent for eco cement and 7.69 percent for premium cement. Eco cement’s ex-factory price rose from $49.10 to $52.88 VAT inclusive, while premium plus cement increased from $53.81 to $57.38.
Reflecting on the absence of competition, Dansteel Marabella manager Jimmy Cumming emphasizes the importance of consumer choice, stating, “Once there is competition, people have a choice.”
Terrence Kalloo, CEO of Built to Last Roofing and Hardware in Freeport, echoes similar sentiments, asserting that Rock Hard’s presence served as a check on TCL, keeping prices in check.
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The series of price hikes, including a 15.6 percent increase in December 2021, followed by increments of seven percent in August 2022 and five percent in March 2023, have raised concerns about affordability and market dynamics.
Amidst the turmoil, the Ministry of Trade and Industry waived the 150,000-tonne importation quota, yet retained the 20 percent Common External Tariff (CET). However, hardware stores find importing cement impractical due to the high tariff.
Efforts to reach TCL for comments on the price increase and market dynamics proved futile, with the company opting not to respond to queries.
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Hardware stores reported changes in customers’ buying patterns leading up to the hike, with increased purchases observed, especially among contractors requiring large quantities of cement.
While some hardware stores in Port of Spain maintained prices for the moment, others adjusted prices immediately, reflecting the challenges faced by both businesses and consumers amidst TCL’s monopoly and successive price hikes.
