Mumbai: The government may consider banning export of cement in a bid to cool prices, even as cement manufacturers have demanded a reduction in duties to bring down prices.

Replying to reporters' questions, commerce and industry minister Kamal Nath said the government is considering a ban on cement exports. "We will look at that cement export ban if it helps bring down cement prices," he said.

Cement manufacturers have, meanwhile, sought tax concessions to bring down prices, and have assured to pass on to the consumers all benefits of any tax concession that the government may consider.

"We are willing to pass on all benefits of tax concession that the government may give us to consumers," Manoj Gaur, president of Cement Manufacturers Association, said.

Cement produces raised prices by Rs10-12 per 50 kg bag in some states from March 1 after the government increased excise duty on cement in the budget a week ago.

Finance minister P Chidambaram had invited a delegation of cement producers on March 6 in a bid to persuade them to lower the prices as part of the efforts to curb inflation.

Cement manufacturers in the country are very competitive despite being taxed at the highest rate in the entire South East Asia, Gaur said, adding that there was no import of the commodity despite it being given the benefit of 'nil' customs duty.

The cement sector is using capacity to the fullest, he said, adding that 80-100 tonnes of capacity would be added at an investment of Rs50,000 crore in the next four-five years.

For a government hard put to check rising prices of commodities jacking up of cement prices by the manufacturers has come as a headache.

Only last week, the government banned futures trading in wheat and rice after the UPA partners blamed speculation for spiraling prices.

The Congress party, which heads the coalition government at the centre, also lost two key state elections because of what UPA chairperson Sonia Gandhi rising prices of food and other essential items.

Shares in Grasim Industries Ltd., India's top cement producer, ended one per cent lower at Rs2,104.40, while number-two ACC Ltd. dropped 4.7 per cent to Rs813.95 and Gujarat Ambuja Cements Ltd. fell 8.5 per cent to Rs104.15 on BSE which lost 9 per cent