The Hindu : Business : Cut cement prices: Govt.

Online edition of India's National Newspaper
Wednesday, May 03, 2006

Business

Business

Cut cement prices: Govt.

Special Correspondent

Export ban may be considered

Kamal Nath

NEW DELHI: The Union Government has given cement manufacturers a fortnight to bring prices to realistic levels, while hinting at the possibility of a ban on exports. Commerce and Industry Minister Kamal Nath has said the industry is "profiteering" and there has been an "abnormal" rise in cement prices in the northern and western regions over the last few months.

The Ministry's views were conveyed to the cement industry at a meeting of cement companies and builders' association here on Tuesday.

Speaking after the meeting, the Secretary, Industrial Policy and Promotion, Ajay Dua, said the Government was concerned over the abnormal rise in prices since last November and could consider a ban on cement exports to improve the domestic supply situation.

At the same time, he said, the Government would not like to take a view on this proposal immediately as India should not lose export markets which took time to develop.

Mr. Dua noted that input costs had risen by 15 per cent while cement prices had shot up by as much as over 40 per cent in the northern and western regions.

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