New Delhi, Mar 9 (UNI) Cement companies have agreed not to hike prices for one year with effect from today, Commerce and Industry Minister Kamal Nath announced today.
"Cement manufacturers have agreed to hold the price line at current levels for one year. They have committed to absorb all input costs and levies," he told reporters here.
The announcement came following a two-hour meeting with the Minister and Department of Industrial Policy and Promotion (DIPP) officials held with senior representatives of the cement industry, including the President of the Cement Manufacturers Association, on the spiralling cement prices.
Cement companies emerged the largest losers of the day lower between two and 9 per cent on the stock markets in Mumbai.
Already investor sentiment is against the cement stocks which have shed a quarter of their market cap since the Union Budget 2007-08 announced a hike in excise rates.
But many of them who had raised prices recently did not budge on the issue of rollback of the post-Budget hike after increase in excise on cement bags costing Rs 190 or more.
The cement producers, however, agreed to pass on the benefit of any cut in excise duty and other statutory levies, to the consumers.
"They also agreed that if any concession is given to them by way of excise duty and other statutory levies, they would also pass on the benefit entirely to the consumers," he said.
Mr Kamal Nath urged the producers to reduce the cement prices which had risen significantly following February 28, when additional excise duty of Rs 200 a tonne was levied on cement costing more than Rs 190 a bag (MRP).
Seeing the adamant mood of the cement producers, he had said that the government might ban exports of cement if the price spiral continued.
Referring to the increase x x x EDS: here pick up from line one of para five of DI 18/DC 13, ECONOMY-CEMENT-PRICES NATH.
UNI
"Cement manufacturers have agreed to hold the price line at current levels for one year. They have committed to absorb all input costs and levies," he told reporters here.
The announcement came following a two-hour meeting with the Minister and Department of Industrial Policy and Promotion (DIPP) officials held with senior representatives of the cement industry, including the President of the Cement Manufacturers Association, on the spiralling cement prices.
Cement companies emerged the largest losers of the day lower between two and 9 per cent on the stock markets in Mumbai.
Already investor sentiment is against the cement stocks which have shed a quarter of their market cap since the Union Budget 2007-08 announced a hike in excise rates.
But many of them who had raised prices recently did not budge on the issue of rollback of the post-Budget hike after increase in excise on cement bags costing Rs 190 or more.
The cement producers, however, agreed to pass on the benefit of any cut in excise duty and other statutory levies, to the consumers.
"They also agreed that if any concession is given to them by way of excise duty and other statutory levies, they would also pass on the benefit entirely to the consumers," he said.
Mr Kamal Nath urged the producers to reduce the cement prices which had risen significantly following February 28, when additional excise duty of Rs 200 a tonne was levied on cement costing more than Rs 190 a bag (MRP).
Seeing the adamant mood of the cement producers, he had said that the government might ban exports of cement if the price spiral continued.
Referring to the increase x x x EDS: here pick up from line one of para five of DI 18/DC 13, ECONOMY-CEMENT-PRICES NATH.
UNI
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