Click to play videoNew Delhi: Planning Commission deputy chairperson Montek Singh Ahluwalia on Tuesday warned action would be taken against steel producers if they don’t curtail prices.
Steel prices have increased by 50 per cent rise in the last one year, contributing about 25 percent to the wholesale price index-based inflation. “It would be in the interest of steel manufacturers if they reduce prices...otherwise the Competition Commission could take action against them," Ahluwalia said.
Pointing out that steel prices have gone up substantially this year, he said steel manufacturers were exploiting the market by raising the rates to encash the rise in demand.
There is a usual tendency among manufacturers to raise prices whenever there is rise in demand and shortage of supply, but steel manufacturers have raised prices beyond all limits, he said.
The steel prices have gone up by about 50 per cent in the past one year, and contributing to about one-fourth to the wholesale price index based inflation, now hovering over 7 per cent.
Cement prices, however, have not been raised as much as they were last year, Ahluwalia said. When asked how could a "non-functional" Competition Commission could take action against steel producers, he said it could be made functional through government support and could take action against any 'alleged cartel'.
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