Cement producers assure government of price cut

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After prevailing upon steel producers to reduce prices, the government on Thursday got assurance from cement producers also that they would substantially cut prices voluntarily.

“We have talked to cement producers and they have assured us that very soon in the course of 2-3 days, after consulting among themselves, they would put forward their proposals of how best the cement prices can be brought down further,” minister of state for industry Ashwani Kumar said on Thursday.

The cement manufacturers along with steel producers have been accused of raising prices through cartel, would get back to the government after discussing as to what extent they could cut prices.

However, the cement manufacturers could not be contacted on the issue. The assurance from manufacturers came after government announced to take tough action against them, besides banning exports and allowing duty free import of cement. Through these measures, he said, about 3.65 lakh tonne of cement has been made available in the market. The cement prices have gone up from about Rs 150 a 50 kg bag to about Rs 220-260 per bag in the past two years.

“In the course of coming few days, significant reduction in prices of cement can be expected,” the minister said. On the industry’s demand to lower tax burden, he said government was “open to consider every measure.” He further said the ministry has submitted a proposal to the finance ministry in this regard and a final decision would be taken by the Cabinet.