Supply gap behind rise in cement price: Chidambaram

New Delhi: The Finance Minister, Mr P. Chidambaram, has indicated that there may not be any let-up in cement prices in the near term in the light of demand outrunning cement capacities in the economy.

'Cement companies are working to near capacity. Demand is outrunning capacity. There is even in the case of cement a demand supply mismatch... unless new capacity comes in,' he told newspersons after a meeting of the Cabinet Committee on Prices.

He was responding to a question on whether the Government plans to take any step in the wake of recent spurt in cement prices and the consequent impact on inflation and the economy.

Mr Chidambaram said that supply-demand mismatch applied not only to essential items but also to commodities like cement. However, he parried queries on the 'remote possibility' of introducing any 'price control' on the cement industry.

Commenting on the general price situation in the economy, Mr Chidambaram said that the recent spurt in prices was being caused by supply-demand mismatches and internationally high commodity prices.

'If you look at each commodity - both articles of food as well as metals and minerals - the world prices are high. With regard to all that, we are taking a number of steps.'