The government may consider banning export of cement in
a bid to cool prices, even as cement manufacturers have
demanded a reduction in duties to bring down prices.
to reporters' questions, commerce and industry minister
Kamal Nath said the government is considering a ban on
cement exports. "We will look at that cement export
ban if it helps bring down cement prices," he said.
manufacturers have, meanwhile, sought tax concessions
to bring down prices, and have assured to pass on to the
consumers all benefits of any tax concession that the
government may consider.
are willing to pass on all benefits of tax concession
that the government may give us to consumers," Manoj
Gaur, president of Cement Manufacturers Association, said.
produces raised prices by Rs10-12 per 50 kg bag in some
states from March 1 after the government increased excise
duty on cement in the budget a week ago.
minister P Chidambaram had invited a delegation of cement
producers on March 6 in a bid to persuade them to lower
the prices as part of the efforts to curb inflation.
manufacturers in the country are very competitive despite
being taxed at the highest rate in the entire South East
Asia, Gaur said, adding that there was no import of the
commodity despite it being given the benefit of 'nil'
cement sector is using capacity to the fullest, he said,
adding that 80-100 tonnes of capacity would be added at
an investment of Rs50,000 crore in the next four-five
a government hard put to check rising prices of commodities
jacking up of cement prices by the manufacturers has come
as a headache.
last week, the government banned futures trading in wheat
and rice after the UPA partners blamed speculation for
Congress party, which heads the coalition government at
the centre, also lost two key state elections because
of what UPA chairperson Sonia Gandhi rising prices of
food and other essential items.
in Grasim Industries Ltd., India's top cement producer,
ended one per cent lower at Rs2,104.40, while number-two
ACC Ltd. dropped 4.7 per cent to Rs813.95 and Gujarat
Ambuja Cements Ltd. fell 8.5 per cent to Rs104.15 on BSE
which lost 9 per cent