India to reduce steel prices to control inflation

New Delhi/ Aurangabad, Apr 19: Commerce and Industry Minister Kamal Nath has said the government is considering steps to reduce steel prices to control inflation. "The steel prices have gone up and that is demonstrated by the balance sheet. We want steel companies to make profit, but we do not want steel companies to be profiteers," Nath said.

Finance Minister P.Chidambaram had earlier said that India expects demand and inflation to be moderate following a recent monetary tightening by the Reserve Bank of India. Meanwhile, in Aurangabad, a revenue official said food grains worth millions of rupees was unearthed during a raid. "Though the investigative committee, and the administration have given orders to take action against those hoarding stocks more than the permissible limits, we have searched 175 places of which 12 places have been found to be violating the orders. We have seized 10,641 quintals of wheat and pulses valued at 21.8 million rupees," said an official, who conducted a raid on a godown.

India's widely watched inflation rate accelerated to 7.41 per cent last week, before tapering off to 7.14 per cent a couple of days ago.

The inflation rate has nearly doubled since December 2007, but the Central Government has said that it could bring it down to five per cent within the next two months.

ANI