Mumbai: The government has vowed to break the logjam of `cartelisation' by the cement and steel industries and said it would take 'tough' measures against hoarders to check spiralling prices.

"The cement and steel manufacturers are behaving like a cartel... If their behaviour does not change, government will not hesitate to take tough measures," finance minister P Chidambaram said during a debate on prices in the Lok Sabha.

Chidambaram said it is for state governments to take drastic steps against hoarding and the centre would even sacrifice revenue to control inflation that has surged to over seven per cent.

"When cabinet committee on prices (CCP) meets, I expect some more measures to be taken," Chidambaram later told reporters.

Chidambaram said inflation has gone up because of rise in international prices of commodities such as wheat, rice, edible oil and metals, apart from speculative activities in the market.

The government had last week banned cement exports as a move to bridge the demand-supply gap in the sector and check rising prices.

However, a notification by the Directorate General of Foreign Trade said the ban on export of cement will not be applicable to sale of the building material to units in special economic zones from the domestic tariff area, considered as deemed exports.

"Cement is not permitted to be exported. However, this restriction shall not apply to supplies of cement from domestic tariff area to units in the SEZs, SEZ developers and co-developers for use within the zone only," the DGFT notification said.