The Hindu Business Line : Talks on with cement producers to cut prices: Chidambaram

Mangalore, May 12 The Union Finance Minister, Mr P. Chidambaram, has said that the Government is still talking to cement manufacturers on reducing prices. “But I have made it very plain, that, if they (cement manufactures) do not voluntarily cut the prices, we are prepared to take administrative measures,” he said.

Addressing presspersons here on Monday, Mr Chidambaram said, “the administrative measures cannot be announced now. It will be announced only when they are taken.”

It is universally acknowledged that steel and cement manufactures put up the prices seeking advantage of the demand-supply situation. “As far as steel is concerned, we have already taken some steps. We have been able to persuade them to cut back price. We have also restricted the export of steel products. I think steel prices will now moderate,” Mr Chidambaram said.

When asked for his response to Dr C. Rangarajan’s statement that inflation will come down to 6 per cent in the next three to four months, he said: “I have great respect for Dr Rangarajan. I sincerely hope that his words come true.”

To a query on Mr Montek Singh Ahluwalia’s opposition to ban on futures trade, he said that even if the Abhijit Sen committee had not reached any conclusion on futures trading, the popular perception is that futures trading would affect prices. “If a parliamentary committee says that futures trading is affecting prices, then in a democracy, we have the responsibility to listen to that sentiment,” Mr Chidambaram said.

GROWTH RATE

Stating that industrial growth has moderated, he said all countries are showing moderation. In 2007-08, the growth rate was 8.7 per cent and above, and 2008-09 will also show a growth rate of over 8 per cent, nearly 8.5 per cent. “That will still give me for the five-year period, the batting average of 8.6 or 8.7 per cent,” he said.