ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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THE PRESS-One-Sided View

be it a monopoly firm, a cartel or a government agency. In the past, the Joint Plants Committee (JPC), which recommended price adjustments to the government, had a strong consumer representation (e g, a large consumer like the railways was represented on it). With the sidelining of JPC, the producers like SAIL and TISCO and the producers1 association of the mini-steel plants will largely determine the price of steel. The government will not be able to use imports to keep prices in check because of the foreign exchange constraint. In Europe, domestic prices of steel are guided by the European Coal and Steel Community (ECSC) quotations. The basis of pricing is a cost- plus approach. A similar basis of pricing of steel exists in the domestic markets of Japan and the US. It is only in the international market that the price of steel is largely determined by the forces of supply and demand (i e, the so-called free play of market forces).

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