CCP meet defers decision over price control differences

April 15th, 2008 - 5:24 pm ICT by admin  

New Delhi, Apr 15 (ANI): The government has postponed the meeting of the Cabinet Committee on Prices (CCP) due to sharp differences between the ministries of Commerce and Finance to control spiralling steel prices.

The CCP was scheduled to meet on Tuesday to discuss measures including imposing an export duty and lowering excise on steel to check prices.

The meeting has been postponed, as the Finance Ministry is not in favour of reducing excise duty on steel fearing loss of revenue. The Finance Ministry is of the view that duty alone will not be able to check rising prices of steel as domestic prices are largely influenced by the international prices, sources said.

There was a proposal from the steel makers to ban export of iron ores to ensure cheaper raw material for domestic production and future expansion. While pressure is mounting from certain quarters for either increasing the export duty or banning the iron ore shipments, the commerce ministry is against any such move, sources added.

The Commerce and Industry Minister Kamal Nath had said last week that the iron ore variety, which is being exported, is not of use to domestic steel makers and a ban would serve no purpose to contain inflation.

The iron ore prices have seen a sharp rise in the global markets, leading to the revision of rate by the domestic miners. (ANI)

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