Cement producers operating in Himachal Pradesh (HP) have agreed to reduce the price of cement in the northern Indian state to bring it more in line with prices in neighbouring states, an official has said.

"Ambuja, ACC and Jaypee have agreed in principle to reduce the price with immediate effect," a government spokesperson told local press.

The move comes as chief minister of Himachal Pradesh, Virbhadra Singh, toughens his stand on cement being sold in Himachal Pradesh at rates higher than in neibouring states.

The companies agreed to lower the rates in border areas of the state from INR15-35 or bring them on a par with the cement rates prevailing in the neighbouring states. Prices in other parts of HP have been reduced from INR15-25, he said.

The official also said that it was agreed at the meeting that he companies would submit quarterly statement of comparative cement price rates being sold in border areas and other parts to the State Director for Industries. Official sources said the rates of cement in the state vary from company to company.