Posts Tagged ‘Indonesia’

RUBBER – STRETCHING & MOVING ON THE WAY AHEAD Final Part

Hello Friends here we come up with an extension of our previous blog, RUBBER – “STRETCHING & MOVING ON THE WAY AHEAD” Part 1

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RUBBER - STRETCHING & MOVING ON THE WAY AHEAD

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In previous Blog, we had touched upon the aspects like that of the investment scenario of rubber in India, price movement of the rubber in Indian market and gap in the demand and supply of the rubber in the market.

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Now in this part, we would look into the impact of the shortage of rubber industry on major industries and the scenario of the rubber production in other countries.

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IMPACT ON MAJOR INDUSTRIES:

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The acute shortages of rubber in the market & rising input cost have affected the tyre industry.

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The ticking demand from automobile industry is growing with days passing by, & the steep rise in raw material cost is exerting pressure on the companies to hike their product prices.

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Apollo has proposed a 5-10 per cent hike while JK Tyres may raise prices by 3-5 per cent.

The automobile firms are presently negotiating the price hike with the tyre companies.

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To curb this negative inflationary impact, the industry has asked permission for duty free import of one lakh tonnes.

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THE ELEVATION “Estimating the future”:

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Thailand & Indonesia accounting for over 60% of the global rubber production, have reported for a            9% & 6% fall in production this year.

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Also Malaysia output hit at 77,620 tonnes in November may pull other nations like China to make a aggressive buying from India.

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The country not confronting any shortage in the domestic market with higher relatively higher opening stock at 2.47 lakh tonnes by November-end is in a safer position as compared to other countries.

This is due to the higher import by the industry which was pegged at 1.32 lakh tonnes during the period.

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Estimating the future, in the lines of rise in domestic consumption by 3.5% as in this year  & export demand coming to the country with shortage in the major producing countries, the prices may ignite further.

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PLANNED LAYOUT “Paving the Way”:

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The government had decided to double the NR production in the country within a period of 10 years, with identifying & bringing around 4.5 lakh hectares of land under cultivation.

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The planned layout:

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1. To increase the acreage in the north-east by 26,200 hectares by 2011-12.

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2. Financial assistance to the tune of Rs 30,000 per hectare for fresh planting and re-planting activities in      these areas.

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3. Expenditure of Rs 23.47 crore for human resource development.

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4. Allocation of Rs 8.8 crore for research and development operations.

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5. An earmark of Rs 19.55 crore for assisting nursing of plantations, processing and marketing of rubber.

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6. Providing fencing to 25,000 hectares for rubber plantation and an additional 500 hectares with irrigation facilities during the eleventh five-year plan.

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7. In order to co-ordinate the development operations in the north-eastern states, an additional Rubber Production Commissioner exclusively for these area will be appointed.

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This was the final part of the topic RUBBER ………… “STRETCHING & MOVING ON THE WAY AHEAD”.

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Stay Tuned for more write ups in “Commodity Corner Series” on SMC Global Blog.

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

Global M&A Deals to Fall 56% in 2009: OECD

Global mergers and acquisitions (M&A) are projected to decline 56% in 2009 compared to last year due to sharp declines in such activities in rich and emerging markets including India.

However, the Organization for Economic Cooperation and Development (OECD) stated that the expected decline in M&A activities this year would be the largest year-on-year decline since 1995.

Meanwhile, the estimate is based on an OECD analysis of data for international M&A activities up to November 26, 2009 where the projected decline is primarily due to a 60% fall in value of cross-border M&A by firms based in the OECD area, to just $454 billion in 2009 from over $1 trillion last year.

Moreover, there has been a decline in M&A activities into and from major emerging economies while International M&A activity by firms based in Brazil, China, India, Indonesia, Russia, and South Africa fell by 62% to $46 billion in 2009 from $121 billion in 2008.

Additionally, it is said that such activities into these countries is anticipated to slide by almost 40% to little over $80 billion in 2009 from just under $140 billion last year while M&A investments have been severely hit by the financial turmoil, which has resulted in tight credit flow.

On the other hand, the latest international investment estimates suggest that total foreign direct investment into the 30 OECD countries will fall to $600 billion in 2009 from a 2008 total of $1.02 trillion.

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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Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here

Consumer Confidence In India?? Excellent & On Upswing ;)

Indian COnsumers Most Confident

Despite below average monsoon, INDIA has emerged as the second most optimistic nation across the world in terms of consumer confidence level.

Majority of people have expressed their positive opinion about job prospects, personal finances and their willingness to spend in the next 12 months. 🙂

A survey conducted by global consultancy firm Nielsen throws light in this regard.

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According to the survey, consumer confidence in India is on upswing, registering a 13-point rise to 112 index points in the second quarter, second only to Indonesia (113 points).

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“The recent elections in India have had a positive effect on Indians’ sentiments towards its economy.

With the UPA government back in power for the second-term, consumers are more confident that political and policy continuity will help recover the Indian economy,’’

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The consumer confidence in India witnessed an uptrend on three parameters—

Job Prospects,

Personal Finances and

Willingness to Spend.

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In terms of job prospects, Over half of Indian consumers are optimistic that job prospects will either be excellent (13%) or good (55%) in the next 12 months.

India ranked second after Indonesia in this regard. 🙂

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When it comes to spending habit, about 4% Indians think this is an excellent time to buy the things they want and need, and 39% think it is a good time to buy things.

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Regarding personal finances, Indians are the most optimistic globally as about 9% of Indians think their personal finances would be excellent in the next 12 months and 65% consider they would be good.

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“A stable economy has refurbished Indian outlook on the job market and their personal finances. Indians are relaxing their hold on money and are spending more than they were willing to spend in the last eight months,’’ an expert from Neilsen quoted.

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However, more or less consumer sentiments are positive all across the world, with the Global Consumer Confidence Index, rising to 82 points from 77 points in March.

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Despite below average monsoon, India has emerged as the second most optimistic nation across the world in terms consumer confidence level, with a majority of people having bullish opinion about job prospects, personal finances and their willingness to spend in the next 12 months, a survey conducted by global consultancy firm Nielsen, said on Tuesday.

According to the survey, consumer confidence in India is on upswing, registering a 13-point rise to 112 index points in the secondquarter, second only to Indonesia (113 points). “The recent elections in India have had a positive effect on Indians’ sentiments towards its economy. With the UPA government back in power for the second-term, consumers are more confident that political and policy continuity will help recover the Indian economy,’’ The Nielsen Company associate director (consumer research) Vatsala Pant said. The consumer confidence in India witnessed an uptrend on three parameters—job prospects, personal finances and willingness to spend. In terms of job prospects, India ranked second after Indonesia. Over half of Indian consumers are optimistic that job prospects will either be excellent (13%) or good (55%) in the next 12 months.

Regarding personal finances, Indians are the most optimistic globally as about 9% of Indians think their personal finances would be excellent in the next 12 months and 65% consider they would be good.

“A stable economy has refurbished Indian outlook on the job market and their personal finances. Indians are relaxing their hold on money and are spending more than they were willing to spend in the last eight months,’’ Pant said. When it comes to spending habit, about 4% Indians think this is an excellent time to buy the things they want and need, and 39% think it is a good time to buy things.

Globally consumer sentiments are positive, with the Global Consumer Confidence Index, rising to 82 points from 77 points in March.