Indian cement cos told to cut prices ?

Indian cement cos told to cut prices ?
Published: 06 April 2009

The government has warned cement manufacturers that it will not extend any stimulus package to the industry unless they reduce the price of the building material, reports the Economic Times of India.
The warning followed the three rounds of price increase by cement companies in the past two months despite the government’s move to contain its price by reducing excise duty on cement.

The department of industrial policy and promotion (DIPP) has told the Cement Manufacturers’ Association (CMA) that their decision of price increase was uncalled for, especially after the government reduced excise rates on various types of cement, a government official said.

With the general elections round the corner, the government is keen on keeping prices of key commodities under check. It had also given a similar warning to carmakers last week against their decision to raise prices of vehicles.

The government said that the price hike was unjustified at a time when construction activities had increased due to the two stimulus packages announced by the government. In the past two months, cement prices have gone up by Rs 15/50kg bag.
Source: Economic times of India