Archive for November 17th, 2009

CORN………. “The Un-discovered Legend” Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Here we would touch upon the importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

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CORN………. “The Un-discovered Legend”

Maize, also known as corn, is a cereal which is an important crop after rice and wheat.

The domestication of maize has been dated back as far back as 12,000 years ago. Today, maize is widely cultivated throughout the world, in a greater size with top producing countries like United States, China, Brazil, France, Indonesia, India and South Africa.

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Indian Scenario:

Andhra Pradesh is now the largest producer contributing around 21% of annual maize production.

India ‘s area harvested of maize and yield have risen by mainly on account of rising production of single cross hybrids seeds, its demand and increasing acceptability among farmers.

In India, its cultivation extends from the hot arid plains of Rajasthan and Gujarat to the wet hills of Assam and Bengal.

There are three distinct seasons for the cultivation of maize:

the main season is kharif;

next is Rabi in Peninsular India and Bihar and

in spring in northern India.

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Normally, higher yields have been recorded in the rabi and spring crops.

Over 85 per cent of the maize acreage is sown under rain-fed conditions during the monsoon when over 80 per cent of the annual rainfall is received.

However, this year due to the erratic monsoon production has been affected, as a result of which maize prices have been in uptrend since the withdrawal of monsoon from the country.

During 2008-9, Indian exported 3 million tonnes of maize and 12,000 tonnes of maize seed worth of Rs 2,400 crore and Rs 2,000 crore respectively.

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Stay Tuned for more on this.

In next blog we would touch upon the issues like Potential source of demand for Maize crop, Industrial Demand and PVO (Price-volume-open Interest) of MAize crops.

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RBI Emphasizes on Managing the Economic Recovery, For Now :)

RBI emphasizes more on Managing economic Recovery

 

The Reserve Bank of India, country”s Central bank, has said that managing economic recovery is now its focus area and the first phase of monetary tightening will arrest inflation without hurting growth.

RBI Executive Director Deepak Mohanty was found quoting  that at present, the focus around the world and also in India has shifted from managing the crisis to managing the recovery.

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He said that withdrawing soft monetary policy, which was initiated to weather the financial crisis is the key challenge.

“The key challenge relates to the exit strategy that needs to be designed, considering that the recovery is as yet fragile but there is an uptick in inflation, though largely from the supply side, which could engender inflationary expectations,” he said.

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Besides this, Mohanty said that the first phase of exit has been initiated by RBI in its monetary policy review in October 2009.

That was done mainly by withdrawal of unconventional measures taken during the crisis.

RBI, in its monetary review in October has raised the requirement for banks to hold portion of the deposits in cash, gold and government securities to 25 per cent.

Moreover, it had also done away with special liquidity provision for banks to provide money to mutual funds and others.

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NEWS ROUND UP – ECONOMY & INDUSTRIAL SECTORS

Hello Friends here we come up with the Latest News round up from Indian Economy and various industrial Sectors of the country.

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NEWS ROUND UP

Economy

·India’s industrial output rose at a faster-than-expected 9.1 percent in September from a year earlier. Manufacturing production rose 9.3 percent in September from a year earlier.

· The green shoots visible in the economy failed to enhance government revenue with indirect tax collections — comprising customs, excise and service tax — falling almost 22 per cent to Rs 1,26,903 crore in the April- October period this year.

It stood at Rs 1,61,954 crore in the corresponding seven months of 2008-09. The overall decline was led by a 32 per cent fall in customs revenue.

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Oil & Gas

·Reliance Industries Ltd. found oil in a block in the western state of Gujarat and is assessing the commercial viability of the discovery, which may help increase domestic fuel supplies.

Five wells were drilled in the 635 square kilometer area located in the Cambay basin, about 130 kilometers (80 miles) from Ahmedabad

·Oil and Natural Gas Corporation (ONGC) has decided to merge its energy trading joint venture with steel tycoon Lakshmi Mittal with their exploration tie-up.

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Metals

·Tata Steel has approved an exchange offer for an existing $875 million of securities into foreign currency convertible bonds (FCCBs), in a move to reduce costs and ease repayment.  The move gives an option to extend the repayment schedule by two years.

·Hindalco Industries plans to raise about Rs 2,900 crore in the next three to four weeks.
In July, it had announced plans to raise Rs 2,400 crore through Qualified Institutional Placement (QIP).

The issue could not take place due to the volatility in the stock markets.

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Capital Goods

· Larsen & Toubro Limited (L&T) has secured a contract worth Rs 1,635 crore to build a coal-fired plant for Madhya Pradesh Power Generation Co. Ltd.

The project will be executed on turnkey basis and L&T’s scope includes design, engineering, manufacture, supply, erection and commissioning of balance of Plant Package (BoP) systems.

·L&T one of the failed suitors for scam-hit Satyam Computer, sold 2.32 per cent stake in the IT company (now Mahindra Satyam) for over Rs 306 crore, exactly a month after the lock-in perid on sale of its holding ended.

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Refineries

· MRPL is planning to invest Rs 6,000-8,000 crore starting from early 2011.

The company is looking at raising around Rs 5,000 crore to support its expansion plan, for setting up a polypropylene plant and installing a single buoy mooring (SBM) at the Mangalore port.

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FMCG

· Emami is diversifying into the cement business and will invest Rs 1,750 crore to set up production units in the next three years.

As part of the new plan, group company Emami Cement will set up a fully integrated cement plant in Chhattisgarh with an installed capacity to produce 3.1 million tonnes.

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Finance

· Power Finance Corporation has decided to lend Rs 50,000 crore, over two third of its total asset base, to fund various proposed power projects in the country.

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