The Hindu Business Line : Govt mulls more cement imports: Kamal Nath

New Delhi, Jan. 9 The Government is contemplating importing more cement to meet the supply-demand mismatch that has led to rise in cement prices, the Union Minister for Commerce and Industry, Mr Kamal Nath, has said.

“We are reviewing cement prices from time to time. While cement companies can make profits, profiteering cannot be allowed,” Mr Nath, said on the sidelines of the sixth Pravasi Bharatiya Divas function here on Wednesday.

The Minister’s statement comes days after the Tamil Nadu Government threatened to nationalise cement companies if private producers failed to check the prices of the construction material.

He added that the long-term answer to the solution lies in expanding the domestic capacities.

“With new capacities coming in, I think there will be softening in the area and the supply-demand mismatch is due to the huge increase in construction sector activity,” Mr Nath said.

Cement prices are currently in the range of around Rs 240 per 50 kg bag, but cost less than Rs 200 about a year ago. According to the Wholesale Price Index for the week ended December 22, cement prices have risen 10.7 per cent year-on-year.

The Government has also been attempting to reduce cement prices by introducing dual excise duty and allowing zero duty imports.

There also have been allegations of cartelisation by cement companies to raise prices. Last month, even the Monopolies and Restrictive Trade Practices Commission had charged cement companies of colluding to fix prices in concert, amounting to cartelisation.