Archive for January 18th, 2010

PM Adviosry Panel Suggests Drop in Inflation Rate to 7%

PM Adviosry Panel Suggests Drop in Inflation Rate to 7% by March End

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The Prime Minister”s advisory panel said inflation could fall to 7% by fiscal-end, in the midst of projection that inflation could touch the double-digit mark.

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However, noting that food prices which have pushed inflation to 7.31% for December are expected to ease in the coming months stated PMEAC Chairman C Rangarajan.

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Whereas, the Reserve Bank of India (RBI) should take some money control measures to tame the rising prices.

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Meanwhile, his optimism is in contrast to alarming projections given by market analysts.

Citi said that if the uptrend seen in fuel and metals continues, inflation could enter the double-digit range in the coming months.

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HDFC Bank Economists stated that inflation is expected to touch 8.5% by March-end.

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Moreover, Rangarajan said the rise in inflation is mainly because of the increase in prices of food articles, which is largely due to supply shortfalls.

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Rangarajan expected the RBI to take back some special refinance facilities from the system while the RBI has projected inflation to be around 6.5% by this fiscal-end.

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The RBI had offered refinance facility to various sectors of the economy, faced with credit squeeze in the economy due to financial crisis that broke out in September 2008.

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🙂

China May Become World Largest Economy by 2030 : Report

China May Pip USA to Become World largest Economy by 2030

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As per the latest report by Deutsche Bank, the economic and financial status of emerging market economies such as India and China will continue to do well in the future and the recent downturn will help accelerate the trend.

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Report also suggests that the (BRIC) economies” increasing size will be making itself increasingly felt in the world markets, ranging from trade and investment to commodity markets.

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Meanwhile, the BRIC economies of Brazil, Russia, India and China are likely to achieve significant growth in future.

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Meanwhile, BRIC nations are already ranked among the top 10 on a PPP (Purchasing Power Parity) basis.

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The impressive economic growth rates and greater participation in global trade and financial flows by the BRIC economies are re-shaping the global economic and financial architecture of these economies.

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It is expected that with the constant present growth of the BRIC economies, political, economic and financial realities  of the world is going to change to the extent that China will replace the US as the World’’s largest economy by 2030.

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All the four big BRIC economies carry at least one investment grade rating, currently, at the same time.

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Moreover, China’’s and Russia’’s international status has been enhanced due to their substantial holdings of government controlled foreign assets.

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Area Sowing of Rabi Crops Crosses Last year Level

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Area sown under Rabi wheat picks up

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Area sown under Rabi wheat picks up

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Sowing of Rabi wheat, rice, coarse cereals and pulses has crossed last year’s level but there is a decline of about 6.2 per cent in the acreage of oilseeds.

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The shortfall in oilseed is mainly due to the decline in acreage of mustard in Rajasthan on account of poor weather conditions.

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A crop and weather watch group coordinated by the Ministry of Agriculture reviewed the situation on Friday.

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It was informed that as against a coverage of 88.85 lakh hectares in oilseeds last year, so far 83.33 lakh hectares had been sown this year.

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The shortfall was in mustard, groundnut, safflower, and Seamus sowing.


The area under pulses, however, increased to 125.60 lakh hectares this rabi, against 120.84 lakh hectares in the corresponding period last year.

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The highest area coverage was in Madhya Pradesh, followed by Uttar Pradesh and Karnataka.

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In the case of wheat, the area sown so far is 260.71 lakh hectares compared to 255.62 lakh hectares last year.

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Sowing in Uttar Pradesh was delayed owing to a late harvest of the kharif sugarcane crop.

The area under coarse cereals stood at 326.20 lakh hectares as against 324.04 lakh hectares in the corresponding period last year.

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Rabi rice was sown in 4.55 lakh hectares against 3.61 lakh hectares last year.

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In Other major Commodities Updates there is news of government allowing import of refined sugar at zero duty up to December 31 this year.

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Govt allows duty free sugar imports till Dec end

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The government allowed import of refined sugar at zero duty up to December 31 this year in the wake of sweetener prices nearing Rs 50 a kg in the retail market.

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The Cabinet Committee on Prices (CCP) also decided to permit UP mills to process imported raw sugar outside the state due to restrictions there.

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Import of white sugar was allowed till March 31 this year earlier.

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🙂

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