FM asks industry to hold price line

Finance Minister P Chidambaram today asked manufacturing companies to hold the price line, and try to cut prices if possible to complement the excise rate cuts in Budget 2008-09."Those industries that have enjoyed a deep fiscal cut should hold the price line," Chidambaram said at a Ficci post-budget meeting here.His appeal was directed towards industries like pharma, two-wheelers, auto, buses, chassis and paper, which will benefit from deep excise rate cuts.Besides food articles, manufacturing is also contributing significantly to inflation, which is now hovering around 4.8%, the Finance Minister said.Chidambaram asked the industry to increase volume if they cannot offset rising input costs through prices. Cautioning that the industry should not take advantage of the supply-demand mismatch, he said: "Try to meet rising demand in 2008-09."