BUILDING BLOCKS

New Delhi, March 7: Commerce minister Kamal Nath today said the government could consider a ban on cement exports if it helped bring down prices.

He said while the cement companies were free “to make profits, it was profiteering that the government was against”.

The minister said, “We would consider all options to bring down prices.” The government would examine whether the increased levies can be absorbed by the cement firms, he added.

Nath said the government did not want “the cement companies to take advantage of the supply-demand mismatch”.

The government is worried over rising prices with the Opposition parties and Left allies repeatedly voicing concerns.

Demand for cement is growing at 10 per cent annually as the country is expanding its infrastructure to sustain high economic growth.

Cement makers had raised prices by Rs 10-12 per 50 kg bag in some states from March 1 after finance minister P. Chidambaram increased excise duty on cement in the budget last week.

Finance and industry ministry officials have asked cement makers to cut prices and help government fight inflation. However, cement producers earlier said they could not cut prices after the duty rise and instead pledged to raise capacity.

The government has continued talks with the industry to cool prices.

“We are waiting for the cement manufacturers to get back to us,” Nath said.

Budget response

The finance ministry today asked cement manufacturers to cut prices, saying they should respond positively to the budget proposal of dual duty structure for the sector.

“Excise hike (announced in the budget) is meant to be a message for cement producers... I hope they will respond,” revenue secretary K.M. Chandrashekhar said.

Price pressure

Cement manufacturers have assured Chidambaram that they would pass on to consumers all benefits of any tax concession that the government may consider for bringing down the prices of the construction material.

“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 while debunking reports that the cement producers had agreed to cut prices.