The government has withdrawn tax refunds on cement exports that it had allowed only the previous day. This has been done to increase availability of cement in the domestic market and check price rise.

The directorate general of foreign trade had on Monday notified duty entitlement pass book scheme (refund of local taxes) on cement exports.

''The amendments stand withdrawn with effect from June 2 itself,'' a fresh notification said.

The commerce ministry had lifted the 46-day old ban on cement exports on 27 May. However, it had allowed shipments only through ports in Gujarat, which account for 95 per cent of the total cement exports. 

The government today said it is alive to the situation of soaring prices and may take further measures if required to tame inflation that has crossed 8 per cent.

Inflation for the week ended May 17 stood at 8.1 per cent against 7.82 in the previous week.

"The government is conscious of the situation and if required, we would take steps to contain inflation," minister of state for finance P K Bansal said on the sidelines of a function organised by the National Housing Bank and Helpage India.

The government is "alive to the situation" and has taken steps, both fiscal as well as administrative, to bring down the rate of rising prices, he said.

The government has taken various measures various measures to tame inflation since it first announced a decision to slash import duty on edible oils and ban export of non-basmati rice on 31 March.

The government has also been asking manufacturing sector to hold the price line.