Chidambaram calls for patience on prices - Hindustan Times
close_game
close_game

Chidambaram calls for patience on prices

None | By, New Delhi
Mar 15, 2007 03:14 AM IST

Chidambaram had introduced dual excise duty on cement depending on the sale price, a move that prompted the cement industry to raise cement prices to absorb the additional burden, reports Aloke Tikku.

Finance Minister P Chidambaram on Wednesday asked the Opposition not to come to hasty conclusions on the effectiveness of measures taken to rein in cement prices.

HT Image
HT Image

In his budget proposals, Chidambaram had introduced dual excise duty on cement depending on the sale price, a move that prompted the cement industry to raise cement prices to absorb the additional burden.

Hindustan Times - your fastest source for breaking news! Read now.

On Wednesday, BJP leader and former finance minister Yashwant Sinha criticised Chidambaram for the move.

Sinha had opened the debate on the Budget proposals in the Rajya Sabha, severely criticising the finance minister for the government's inept handling of inflation and promised to withdraw the fringe benefit tax and the banking transaction tax when the BJP returned to power.

Should the government be silent when manufacturers raise cement price by 40 per cent in eight months, Chidambaram asked, pointing that he had indeed used fiscal measures to moderate prices.

"I may succeed, I may not succeed. Don't come to any conclusions now," the finance minister emphasised. Sinha had earlier lauded efforts by commerce minister Kamal Nath to get the manufacturers to freeze prices in future; Chidambaram, however, hinted that he would like to see lowering of prices, not just a freeze and renewed his appeal to cement manufacturers to moderate prices.

Initiating the discussion, Sinha had earlier described inflation as the central issue that should have guided the Budget as it has the potential to hurt growth. He also rejected the impression that the UPA government had inherited an inflationary situation from the NDA. Attacking the government for its failure to check inflation, the former finance minister recalled 10 per cent plus inflation during the early nineties when Manmohan Singh was the prime minister.

Sinha suggested that the government was relying too much on good monsoon to check inflation but wondered what would be done in case the production does not rise.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Aloke Tikku has covered internal security, transparency and politics for Hindustan Times. He has a keen interest in legal affairs and dabbles in data journalism.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, March 27, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On