Govt mulls cheaper metals, cement imports

Commerce and Industry Minister Kamal Nath today said the government will continue its war on galloping inflation by easing supply pressures through more liberal import and fiscal regime for cement and metals.

"The prices are rising because the supply has not kept with the demand in a rapidly growing economy. We at Department of Industrial Policy and Promotion (DIPP) are trying to see where these supply gaps are coming from. If need arises, imports will be made more flexible," Nath said.

Nath did not agree with the view that the rising inflation was a sign of overheating of the economy.

While the Reserve Bank is fighting inflation by tightening the money supply, the government has decided to ban exports of wheat and milk and allowed freer imports of maize. Today it also cut prices of petrol and diesel.

The DIPP has identified cement, metals and paper as products that are fuelling inflation and is in touch with Finance Ministry and other ministries dealing with them on increasing the supply of these essential commodities.

While the government has taken a few steps in case of cement, it is contemplating easing imports of ferrous and non-ferrous metals further.