The government has convinced cement as well as secondary steel firms to slash prices, as part of its efforts to reduce prices.

Cement makers would slash prices by Rs 7.5 per 50-kg-bag in total but a few states, whereas the secondary steel companies would cut prices on all flat products and galvanised sheets by Rs 4,000 per tonne.

Both the steel and cement manufacturers said that they would keep prices stable for the next three months.

After confronting a three-and-a-half year high inflation of 7.61%, the government has made changes in the customs and excise duties on different items together with many administrative steps that includes a ban on futures trading of a few farm products.

After his meeting with cement makers, Kamal Nath, Commerce and Industry Minister, said, “We had discussion with cement industry, which has stated that in the last one year, the price increase has been only two per cent. However, to combat and address the issue of inflation, they have agreed in certain states (to cut prices).”

Mr. Kamal Nath stated that the cement industry was scattered crosswise India with different prices in states. In some states, the prices will be diluted between Rs 3 and Rs 7.5 per bag from the level existing on April 1, 2008.

The recent price cut will not be applicable to the companies that are already providing cement at low rates in states including Tamil Nadu and Andhra Pradesh.

The cement rates in states like Uttar Pradesh, Rajasthan and Madhya Pradesh should immediately fall, he said.

Representatives of leading cement makers such as ACC, Jaypee, Ambuja Cement and Dalmiya Cement were also the part of meeting with the minister that lasted over an hour.

Nath said that the government would explore various matters of coal linkages and the abatement of excise duties for the cement sector.

“This is the only industry where abatement has not been applied yet. We will look into these issues as well,” he said.