Govt to check steel price rise1 min read . Updated: 27 Jul 2008, 05:33 PM IST
Govt to check steel price rise
New Delhi: Amid indications from steel companies that they might increase prices from the second week of August, the government has said that it would take steps to ensure that prices of steel do not rise further.
The Minister of State for Steel Jitin Prasada told PTI that all possibilities for development in the steel sector would be kept in mind and “efforts would be made to ensure that its prices do not go up".
Admitting that there had been a rise in prices of coking coal and iron ore, he said that in case prices rise further, government may consider to regulate the sector.
Meanwhile, according to sources, the government had asked the Steel Authority of India (SAIL) and some private companies not to increase prices of steel for some more time so that inflation can be controlled.
Inflation has already touched 11.89% which is the highest in the last 13 years.
This comes in the wake of reports that primary steel producing companies are planning to increase prices due to a rise in price of raw material and transportation. The companies had not increased prices since 7 May.
Sources said that the government did not want any hike in the steel prices as this can stoke inflation further.
Concerned over the increase in prices, the government had imposed a 15% duty on exports but later on the demand of the industry it was withdrawn from flat products.