Posts Tagged ‘consumers’

INFLATION…. “THE SILENT CREEPER”

Hello Friends here we come up with another write up on “SMC Gyan Series”.

🙂

.

INFLATION…. “THE SILENT CREEPER”

.

Topic is INFLATION…. “THE SILENT CREEPER”

.

Here, we would go through the Brief of like what are the impacts of inflation on economy in current scenario and what are the reasons for the inflation?

.

🙂

.

It is an alarming situation when the entire world is fighting with this historical economic crisis.

.

Inflation is adding additional pressure on government as well as consumers.

.

Major contributor of this whopping hike in inflation is food inflation at present context.

Mismatch between demand and supply worldwide created chaos and sent prices of many commodities at multi year highs.

.

According to the latest data, food inflation rose to 17.47 % for the week ended

November 21, 2009 against 15.58 % in the previous week owing to spiraling prices of
vegetables, pulses and sugar.

.

If we talk about overall WPI inflation, it doubled to 1.34 % in October as compared to 0.50 % in the previous month.

.

On year on year basis, food prices jumped by 13.32% in October only.

.

Rice, pulses, sugar and potatoes, onions were up by 13.22%, 22.81%, 45.70%, 96.43% and 37.60% respectively.

.

Reasons for inflation and its impact on economy:

.

•  Bleak monsoon coupled with worst drought in nearly four decades in the country situation is haunting the entire economy.

.

According to an estimate, India may see a drop of 18% in Kharif crop.

It will create further demand and supply mismatch.

People will spend less, if prices will move in the same way and ultimately it will affect most of the sector of economy.

.

•  To encourage farmers to produce more, government has recently increased the MSP (Minimum support Price) of rice, oilseeds, cotton, sugar and many more.

.

Higher MSP immediately pushed the prices up.

Though the long term impact of this step will be positive, as more farmers will produce more to get good remuneration.

.

•  Hoarding by stockist, farmers in anticipation of further hike in prices is also creating a demand supply mismatch, resulting in higher food inflation.

.

•  Government has to compete high with the large scale entry of private players, which procure grains aggressively for biscuits, millers and manufacturers of processed foods.

.

•  Declining trend of public investment in agriculture is another concern for government at present.

.

🙂

.

Next Blog we would try to know about the possible Measures to check inflation.

Stay Tuned for more and more on this 🙂

.

🙂

.

However For More latest Industry,Stock Market and Economy News Updates, Click Here

Sweetness Of Sugar – Part 1 :)

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

Sweetness of Sugar

Sweetness of Sugar

We would touch upon aspects like seasonality,cyclic nature and analysis of price trend of Sugar.

The Commodity

Sugar is the most plentiful economic sweetener and India’s second largest agro-processing industry.

There are more than 600 installed sugar mills in the country.

🙂

The Seasonality & Cyclic Nature

The crushing season in the country generally starts from October and reaches its peak in January before March end or April of the next year.

It has been seen that during this period, supply arrives in the market and resultantly prices starts falling.

The cyclic pattern of the sugar industry lasts for 3-5 years.

Currently, the domestic sugar market is entering into a severe shortage phase due to sharp decline in production.

😦

Analysis Of Price Trend

Tracking short term movements as well as the longer term trends seen in and over the last years, one can analyse and assess its prices.

Since 2006, Sugar has been widely talked displaying a continuous bullish rally both in domestic & international market.

In domestic markets, Sugar prices remained bearish in the most part of the year 2007.

Prices surged by almost 30% in the first half of 2008 & regained its sweetness with supportive factors like lower production estimates and rise in export demand.

From July 2008 sugar prices have been maintaining its bullish trend.

In January, 2009 sugar prices reached record high levels.

With an eye on the rising prices, the Central Government announced measures with aim to control sugar prices.

In the month of May, 2009 world sugar prices have surged to a near-three year high, on the back of speculative buying by
funds betting on supply shortfalls in India and Pakistan.

Since October (the beginning of the 2008-09 sugar season), prices in spot and futures market have witnessed a bull run due to lower production estimates for the season.

Market has already breached the long term bearish trend line and presently trading in an interim bullish trend channel.

Speculators, and especially large traders, have really embraced the long side of the Sugar market.

The commodity has one of the best fundamental pictures right now and it is getting a good deal of solid buying.
The sugar market is overbought but it seems that it still has room to move higher in the longterm bull market than imagined.

It has been one of the better performers of the commodities market.

The price of Sugar has more than tripled in about 3 years.

Though, Sugar seems set to lose some of its sweetness for consumers in the time to come.

Sugar prices recently touched a 28-year high of 25.39 cents per pound on September 30, 2009.

This is likely to climb up going forward, because imports by countries such as China, Russia, Mexico and India are set to rise. These countries are consuming more, but producing less of the commodity.

Sugar futures tended to do well in these years.
An investor could have increased his return variability in these years without sacrificing any of his return.

Stay Tuned for more on Sugar Market in commodity corner 😉

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Banking To Turn More Customer Friendly ;)

banking-customer-friendly

The Banking Code and Standards Board of India (BCSBI) revised the Code of Banks’ Commitment to customers, in consultation with the Reserve Bank of India (RBI) and IBA.

🙂

The move will make banking more customer-friendly, as it promises more transparency in banks’ functions and dealing with the consumers.

🙂

The reviewed code leads banks to disclose complete information on interest rates, including reference rates to which floating rates of interest are linked.

🙂

In addition, banks are also required to display customer centric policies on cheque collection, compensation and grievance redressal on their website.

🙂

Besides, they need to provide Most Important Terms & Conditions (MITC) to customers who have applied for credit facilities by way of loan or credit card and also update immediately on website, any changes in terms and conditions of products and services offered.

The banks are also required to compensate customer, apart from these, for delayed collection of cheques and also reimburse erroneous debit from ATM transactions.

🙂

RBI‘s active interest in raising standards of banking services is in line with the need to improve the customer banking experience and iron out anomalies that impede with customers’ rights.

🙂

However, the concerned revisions in the banking code have come after sustained complaints from customers over lack of transparency in certain banking issues.

🙂

Rising Sugar Prices Threatens to Make Coming Festival Season Bitter :(

Skyrocket prices of Sugar

Rising sugar prices are threatening to make the coming festival season bitter and are causing concerns for many consumers.

😦

Moreover, in order to meet increasing demand, India will be forced to import sugar in large quantities and this in all possibility will further increase sugar prices.

😦

However, local production has plunged to 14.5 million tonnes in the 2008-09 with demand at 23 million tonnes, the deadline for duty-free raw sugar imports has been extended by nine months to December 2010.

😦

Additionally, the government is going to start a fortnightly sale of non-levy sugar with the September quota set at 2.11 lakh tonnes 🙂

This year most deficits have been met by opening stocks and next year they’ll need much larger imports of about 6 million tonnes of raw sugar and 1 million tonnes of white sugar.

😦

Moreover, nearly 4 million tonnes of sugar have been already purchased by the Indian industry, while India’s sugar shopping spree abroad has sent prices of refined sugar in the global market skyrocketing.

🙂

Additionally, it is said that the world market has recorded a 28-year high and has shot up 60% to $610 per tonne in August 2009 from a level of $380 per tonne in October 2008.

🙂