Date:02/04/2008 URL: http://www.thehindu.com/2008/04/02/stories/2008040261641200.htm

National

Government for 10-20% cut in steel prices

Special Correspondent

NEW DELHI: The government on Tuesday said that it was looking for a 10 to 20 per cent reduction in the prices of steel products as a part of the package under consideration to contain the inflationary spiral.

Steel is one of the key commodities that contributed in a big way to the spurt in the inflation rate to 6.68 per cent.

Commerce Secretary G.K. Pillai said: “The government is keen to control inflation. Steel prices have to come down. I think the possibility is that steel prices can easily come down between 10-20 per cent...We may not [have to] wait even for 30 days”.

Noting that the government was ready to help the steel producers in holding the price line, he said: “Everybody understands that steel prices are a little high. Iron ore producers, steelmakers are making good profits. They have to decide whether they want to reduce prices voluntarily or [the] government will do it for them…The message has gone to them clearly that there is a need to work out a system by which the prices come down. Otherwise, the government will have to take measures on its own to bring it down.”