Government weighs cement export ban as producers seek duty cuts to cool prices

07 March 2007

Mumbai: 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.

Replying 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.

Cement 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.

"We 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.

Cement 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.

Finance 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.