PM, Montek Sound Stern Action, Cos Deny Cartelization, Blame Input Cost As rising steel prices are fuelling inflation in a major way, PM Manmohan Singh on Tuesday warned the domestic steel industry, saying it should not take advantage of global surge in steel prices. He said steel companies should not take advantage of global market manipulations and go for short term windfall gains, which in turn put upward pressure on prices. Indirectly telling the industry to cut prices, Singh said such behaviour of the steel producers hurt consumers and disrupt the process of stability, which is essential for economic growth. While PM was speaking in a Tata Steel function in Jamshedpur, The Planning Commission deputy chairman Montek Singh Ahluwalia also aired the similar view on Tuesday in Delhi and warned that the Competition Commission could take action against steel producers in case they do not lower prices. A similar line was taken by FM P Chidambaram in Parliament recently, when he said cement and steel firms are acting in a cartel. However, in a written reply to Lok Sabha recently, minister of state for steel Jitin Prasad defended the industry and said there is no evidence on cartelisation by steel companies in determining prices. Ahluwalia on Tuesday said it would be in the interest of steel manufacturers if they reduce prices. Otherwise, he warned, the Competition Commission could take action against them. Following the warning from PM, Tata Steel MD B Muthuraman said,