A day after the cement companies agreed to cut prices between Rs 3 and Rs 7.5 per bag of 50 kg, Finance Minister P Chidambaram said on Thursday there is big scope for further reduction in retail prices.

"I do think that there is a scope for significant reduction in cement prices," Chidambaram told reporters here.

Asked whether the government would consider the industry request to cut excise duty, Chidambaram said, "I do not know".

Chidambaram said he has not received any 'official' communication on reduction in prices, but "I have read in the newspapers that they have agreed for small cut in cement prices. There is scope for significant reduction."

At a meeting with Commerce and Industry Minister Kamal Nath, the cement manufacturers had yesterday agreed for a small roll back in prices.

Nath had said though price increase was only two per cent in the last one year, the industry had agreed for a reduction in prices.