Posts Tagged ‘Indian agriculture’

Centre released Rs.361 crore to the States

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

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Centre released Rs.361 crore to the States

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Centre releases Rs. 361 crore to States :

The Centre on Tuesday released to the State Rs.361 crore as its share of the 2008 kharif crop insurance.

Minister N. Raghuveera Reddy said the State and Central governments had sanctioned Rs.800 cr. under the crop insurance scheme claimed by 7.5 lakh farmers.

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Out of which, the State already released its share of Rs.356 crore a month back.

The distribution process of the released funds would be completed in two-three days.

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🙂

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In Other major Commodities Updates, we can read about the stories of flour mills across the country buying of wheat from government under OMSS via electronic auction process on NCDEX Spot Exchange and on NSEL.

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Also we will read of the story related to NCDEX, which is set to launch online spot trading in Rajasthan soon.

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Flour mills to buy wheat from govt through e-auction:

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Come January and flour mills across the country will start buying wheat from government under open market sales scheme (OMSS) via electronic auction process on NCDEX Spot Exchange and National Spot Exchange (NSEL).

State-owned Food Corporation of India (FCI) has decided to use electronic trading platform of both the bourses to offer wheat under OMSS.

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Under OMSS, FCI has offered 1.5 million tonnes wheat in the first tranche in four states — Delhi, Haryana, Karnataka, and Andhra Pradesh.

The minimum quantity has been fixed at 100 tonnes and then in multiples of 10 tonnes.

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🙂

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NCDEX to start online spot trading in Rajasthan:

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NCDEX Spot Exchange (NSPOT), a spot trading arm of the country’s largest agri commodities futures trading platform, National Commodity and Derivatives Exchange (NCDEX), is all set to launch online spot  trading in Rajasthan soon.

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The exchange has already got permission from the state government to launch spot trading in rapeseed/mustardseed, chana and guarseed in the state.

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With this, the exchange has secured permission to set up Spot exchanges in the states of Gujarat, Karnataka, Maharashtra, Haryana, Bihar, Rajasthan and Kerala.

It also has APMC cess paid contracts in Madhya Pradesh.

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🙂

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

Agri industry incurring Rs 76,500 cr annual loss

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

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Agri industry incurring Rs 76,500 cr annual loss

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Agri industry incurring Rs 76,500 cr annual loss:

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Faced with an annual loss of Rs 76,500 crore, the Indian agriculture industry needs to gear up infrastructure facilities as also the allied food processing industry on a war footing.

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A top official of National Dairy Research Institute Deemed University, Karnal has said so, on Monday.

Out of the loss of Rs 76,500 crore, equivalent to the annual budget of three big states,

Rs 52,400 crore accounts for perishable fruits, vegetables and poultry products.

The huge loss, despite annual agriculture production of 149 million tons, was mainly due to

an inefficient supply chain, very low food processing and huge post harvest loss, he said.

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In Other major Commodities Updates, we can read that Oil firms have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

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Oil firms agree to pay 25% more for ethanol:

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After years of wrangling between oil marketing companies and sugar millers over the price at which ethanol should be sold

for fulfilling the government’s commitment of 5% blending with petrol, a consensus on the price seems to have been arrived between both the parties.

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State-owned oil companies are believed to have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

Indian Oil, Hindustan Petroleum and Bharat Petroleum have agreed to raise ethanol procurement price from Rs 21.50 a litre to Rs 27 per litre.

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The companies will not float any new tender but will buy any ethanol offered at these rates.

Currently, oil marketing companies (OMCs)—

Indian Oil, Hindustan Petroleum and Bharat petroleum—pay Rs 21.50 to buy a litre of ethanol while the sugar millers were seeking a price up to Rs 31 a litre.

The state-run oil firms had previously expressed willingness to pay Rs 26 a litre, a rate which was not acceptable to millers.

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Sources said a compromise was reached at Rs 27 a litre.

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🙂

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

INFLATION – “THE SILENT CREEPER” Part 2

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Hello Friends here we come up with an extension of our previous blog, INFLATION –  “THE SILENT CREEPER”.

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Inflation Silent Creeper Part 2

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In previous Blog we had touched upon the impacts of inflation on economy in current scenario and the reasons for the inflation.

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Now in this part we would look into the possible Measures to check inflation.

Measures to check inflation:


•  To give immediate relief from inflationary pressure, government is planning to check the supply deficiency.

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It has allowed importing sugar.

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It will import rice, as rice production is expected to drop in 2010.

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Import duties on oil seeds have been slashed.

•  Money supply should be checked, otherwise in the time of scarcity excess liquidity will accelerate inflation further.

•  Distribution process should be very fast and transparent.

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Currently we need a well managed and coordinated distribution of stocks through PDS (Public Distribution System), open market sales of public stocks etc.

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Hoarding should be avoided here and government should keep an eye on this.

•  This rising inflation has become a major threat for economy.

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The only key way to check the inflation is to bridge the gap between demand and supply, which may control the price rise.

•  Unfortunately, Indian agriculture is characterized by low input and low output systems.

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Hence we have to increase the productivity.

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For example: Yield of paddy in India is only 2.9 tonnes/hectare as compared to 7.5 tonnes/hectare in US.

•  Check the rising cost of cultivation.

Increasing land, labour, fertilizers and other inputs are discouraging farmers to produce more in absence of sufficient liquidity.

•  Apart from grain, government should also create buffer stocks or strategic reserve of oil seeds and other crop, so that it can release it at the time of crisis.

Next Blog we would try to know about the other concerns in Indian economy regarding the parameters to check inflation.

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Stay Tuned for more on this.

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

Positive Undertones in the Economy – Part 2 :)

Positive Undertones In The Economy

Extending to the yesterday’s post on the positive undertones of the economy in the markets and investors tips, here we coming up with the more factors which investors should use for picking up fundamentally good stocks.

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1. Reality companies hike rates by 15%

Reality sector is witnessing a substantial demand, especially in the mature markets, after the prices dropped a few months ago.

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With the gradual return of residential property buyers, prices in NCR and Mumbai areas have moved up 10-15%.

How long these prices will sustain is hard to determine, but this indicates the confidence of investors.

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2. India..in Better Position

India can be considered as “balanced” in terms of investment and consumption with savings rate of 35% and consumption of 65% of its GDP.

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The fastest growing China leans towards investment, whereas most of the western countries are weighted more towards consumption.

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If we compare India’s Sensitive Index with its other Asian peers, Sensex is valued at 17.6 times estimated earnings where as China’s Shanghai Composite Index trades at 22 times earnings and the MSCI Asia Pacific Index is valued at 24 times.

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So, India remains very attractive and it is an opportune time for Indian companies to grab market share.

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3. Developments in the rest of the economy 🙂

If we see the positive economic numbers across the globe, it seems that world economy is moving towards recovery.

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Australian economy surprised with a jump in growth in the second quarter.

US have witnessed a growth in the current quarter GDP, US manufacturing and housing sectors appears to be gathering pace, quarter’s results came better than expected.

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European economies like France and Germany continued their gradual emergence from the worst crisis in decades and company results showed an upturn.

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4. Concerns Over Weak Monsoon!

Everyone is expecting that poor rains would push up food prices in the short-term, due to the reduced yield of kharif crop and it would add to inflationary pressures.

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But at the same time, we should also know that Indian agriculture is not limited to agro commodities only, but it is well diversified into horticulture, livestock and fisheries and their share in total output of the agricultural sector is increasing.

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Total agricultural output accounts for only 18.5 % of the gross domestic product and the kharif crops like cereals, pulses and oilseeds account for only 20% of it.

Moreover, government spending in rural areas will mitigate the effect of diminished monsoon rains.

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So, Looking at the above factors, India growth story remains strong in the long run.

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So, one can go for the companies, which will benefit from “Economic growth” like power plants, roads, service providers like banking and engineering sector.

Thanks 🙂