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Cement prices can be cut significantly: Chidambaram

Special Correspondent

No move to withdraw steel export duty

Cement firms agreed to reduce price by Rs. 3-7.50 a bag
“Duty cut on crude oil will not impact retail prices”

NEW DELHI: Even as the cement industry agreed to cut prices to help the government tame inflation, Finance Minister P. Chidambaram on Thursday said there was still scope for a further reduction.

“I do think that there is a scope for significant reduction in cement prices,” he said at a press briefing here.

The Minister’s comments came just a day after cement companies agreed to shed Rs. 3-7.50 a bag (of 50 kg). However, to a question whether the government would entertain the industry’s request for lowering the excise duty on cement, he said, “I do not know.”

On the issue of import duty cut on crude, Mr. Chidambaram reasoned that such a step would have no impact on the administered retail prices of petroleum products.

Fiscal measures

In recent months, the government, in its bid to hold the price line, has effected a slew of fiscal and administrative measures such as slashing import duties on edible oils, banning export of non-basmati rice and cement, and imposing a levy on steel export.

Asked whether the government would accede to the steel producers’ request to withdraw the export duty, Mr. Chidambaram made it clear that there was no such proposal as yet. The levy, he pointed out, was imposed on the recommendation of the Steel Ministry. “If there is a rethinking, I suppose, the Ministry of Steel will send me a proposal.”

Request to PM

Earlier this week, Steel Secretary R.S. Pandey said the primary steel producers’ request for withdrawal of the export duty was under government consideration and a decision was expected soon.

The request was conveyed by steel makers at the meeting they had with Prime Minister Manmohan Singh, following which the prices of flat product were cut by Rs. 4,000 a tonne and of reinforcement bars and structurals by Rs. 2,000 a tonne.

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