Industry Sec expresses concern over rising prices

Mumbai, Mar 30: Union Commerce and Industry Secretary Dr Ajay Dua today expressed concern over rising price of manufacturing goods.

Talking to the reporters on the sidelines of a seminar on globalisation which was held by the EXIM Bank here, Dr Dua expressed satisfaction over the inflation rate that has remained static in the recent past.

The country's wholesale price index rose 6.46 per cent in the 12 months to March 17, matching the previous week's increase, as per the data which was released by the government in New Delhi today.

The figure was slightly below than the estimated mark of 6.50.

Mr Dua's concern is basically over the increase in the prices of items like steel, non-ferrous items, aluminum, paper, cement among others. FDI is likely to cross the mark of USD 17.1 billion by the end of this month, compared to USD 7 billion of last year- a hike of 268 per cent, he added.

Commenting over the Railway's Ministry's recent announcement of bringing hike in the freight, he said that it was also cause behind the price-hike of certain manufacture goods after they had gone for a roll-back post budget this year.

Also, he added that it was all a market-driven act. Steel prices had gone up during early this year, however only to come down post budget and again they are rallying for another hike.

Replying to a query relating to the supply side constraints, he said,''There has been increase in transportation as well as energy cost of late which has helped rise in the price line of manufacturing goods to a certain level. Giving the example of coal price hike, he said that it has witnessed 58 per cent compared to previous year's price.

UNI