Govt may restrict petrochem exports
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09/07/2008
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Business Standard (New Delhi)
BS Reporter / New Delhi July 10, 2008, 0:44 IST As part of its efforts to contain inflation, the government may consider imposing export curbs or duties on petrochemical products like polymers, a crucial raw material for plastic manufacturing, among other items. Sources said a meeting with industry representatives may be held at the finance ministry to discuss price-related issues of the petrochemicals sector and seek the industry's views before a policy decision is taken. While official sources were not available for comment, it is understood that the meeting will have representation from leading Indian petrochemical companies. The government has been concerned over rising prices across industrial sectors and has taken several steps in the past to contain prices in segments like steel, cement and cotton. With prices of crude oil reaching new highs, prices of petroleum products have also risen. The domestic plastic industry has raised a demand for being allowed cheaper imports. Between January 5 and June 14, the economy has witnessed a build up of inflation of 8.5 percentage points, according to a finance ministry analysis.