Centre steps up pressure on cement companies

By OUR CORRESPONDENT

New Delhi, May 8: After steel it’s the turn of the cement companies. The government expects the cement companies to cut prices to control the soaring inflation.

The minister of state for industry, Dr Ashwani Kumar, said representatives of the Cement Manufacturers Association (CMA) have responded positively to suggestions of reducing cement prices. He said the government has asked the industry to hold prices in the interest of all stakeholders. For this it is advisable that the industry shuns windfall profits, said the minister. "In the coming days a significant further reduction in prices of cement can be expected," said the minister.

Steel companies on Wednesday had slashed the prices of steel products upto Rs 4,000 per tonne.

CMA president and Shree Cement managing director, Mr H.M. Bangur, told this newspaper that the cement companies have started cutting prices. "The softening process has started. In Gujarat, companies have cut prices by Rs 7 to Rs 8 per bag and in Delhi by Rs 2 to Rs 4 depending upon the local conditions," said Mr Bangur. On whether there could be more substantial cuts in the coming days, he said, "I can’t say anything on it. But my own feeling is that the softening process will continue."

Dr Kumar said that controlling price rise is the foremost priority of the government. He said the full effect of measures taken by the Centre to curb price escalation is likely to be felt in the coming weeks.

However, the positive effect thereof on the price of various items and commodities is already noticeable, he added.