Govt's move will reduce profitability of industry:Commodity traders

Mumbai, Feb 28 (UNI) Commodity traders today lamented that Government's efforts to arrest price hikes and control inflation in the Commodities sector would actually reduce the profitability of the industry.

''For instance, increasing excise duty on cement from Rs 400 to Rs 600 for prices above Rs 190 per bag and reducing from Rs 400 to Rs 350 is a negative move, as cement prices per bag in most places is above Rs 190 at present. With demand strong, we believe the increase in duty would be largely passed on to customers. However, continous efforts by the Government to curb the price increase and reduce the profitability of the industry is visible,'' a Commodities trader here said.

''However, increase in allocation for Bharat Nirman, rural housing and roads is a positive development for the industry,'' he added.

UNI