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Govt Expects To Make Up In Next Season
NewDelhi:Country's foodgrains production is projected to decline by 10% in the kharif season of this year at 117.18 million tonne due to deficient monsoon and drought in some states.
However, the government expects to make up for the decline in output during the Rabi season (winter sown crop). Foodgrains output stood at 129.94 million tonnes (MT) in last year's Kharif season. The production of rice — a major Kharif crop — is expected to fall to 85.59 MT compared with 91.53 MT in the last Kharif (summer crops).
"As per the first advance estimate, total foodgrains production is expected at 117.18 million tonnes in the kharif season of 2012-13 crop year, lower than the last year but higher than the average production of 113 million tonnes in the last five years," agriculture minister Sharad Pawar told reporters here.
"Whatever shortfall we have seen in kharif season will be covered in rabi," the minister said.
Pulses production is estimated at 5.26 MT in Kharif this year against 6.16 MT last year, he said, adding the production of coarse cereals is estimated to fall to 26.33 MT from 32.26 MT.
Deficiency of monsoon stands at 5% so far. Karnataka, Maharashtra, Gujarat and Rajasthan have declared drought in over 390 taluks.
Asked if fall in foodgrains output will impact prices, Pawar said: "Last year's stock position of wheat and rice is extremely good. There is no problem. I am worried prices of wheat, atta and sugar are going up in the market. I do not understand the reason".
Surplus grain sale plan irrational: CPM
New Delhi: Opposing government's decision to sell 10 million tonnes of surplus food stock to bulk consumers, CPM on Monday demanded immediate reversal and said the stock should have gone to those in hunger.
"The government through this decision intends to transfer food subsidy as largesse and to benefit traders and manufacturers, including big companies, and not to those in hunger and food insecurity," CPM politburo said in a statement. Disputing government's claim that the move was intended to control prices, the party said it is "totally irrational." If government was interested in controlling prices, "a most obvious step would be to increase supplies through PDS," it added. TNN  |
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New Delhi: Keeping the festive season in mind, the Manmohan Singh government, which is on a reforms-fiscal correction mode, hit the pause button on Monday, deferring a decision on scrapping subsidy on levy sugar under the public distribution system (PDS) quota. Removing the subsidy would have meant a steep hike in the price of the commodity to Rs 23 per kg from Rs 13.50/kg.
The relief is expected to last till December.
The Cabinet also did not take up the proposal to computerize PDS, a move aimed at digitizing ration cards, and fully computerize the supply management chain of the Food Corporation of India.
But in a major relief for the common man, the Union Cabinet on Monday extended a control order on commodities from October 2012 to September 2013, which will help moderate prices of pulses, edible oils and oilseeds and ensure their availability at fair prices.
2,300cr package for former servicemen T he government has cleared a Rs 2,300-crore additional pension package for former servicemen but stopped short of granting them full one-rank, one-pension. P 10 CWC to meet today, revamp tops agenda Amidst indications of a Cabinet rejig, a CWC meet has been called on Tuesday. The reshuffle is being looked forward to as, among other things, Rahul Gandhi has said he is ready for bigger role. P 9 Cabinet clears plan to check malnutrition
New Delhi: The Union Cabinet's decision to extend a control order on commodities to September 2013 will enable state governments to continue with effective de-hoarding operations under the Essential Commodities Act, 1955. Aiming to tackle under-nutrition in children below three years, the Cabinet has paved the way for the rollout of a restructured Integrated Child Development Scheme in the 12th five year Plan (2012-17). The cabinet committee on economic affairs has cleared the plan with estimated financial implications of Rs 123,580 crore. The restructured ICDS will be launched in the next three years, starting with 200 high-burden districts identified by the government.
The flagship scheme, which focuses on maternal and child health and nutrition, will emphasize early development in all children below six years of age, improved care and nutrition of girls and women and reduce by a fifth anemia prevalence in young children, girls and women.
Vidyalaxmi has some sensible advice for those undecided on gold purchases now
Gold is shining bright. The metal rose for a third successive month in August with a gain of 4.8% — the largest one-month increase in price since January. And with the global economy in turmoil, it is only expected to rise further. "First, hot money is chasing commodities, which has pushed up the prices of gold, silver and other commodities.
Second, whenever an economy encounters a big calamity, investors tend to rush towards gold as a stable investment option," says Richa Karpe, director (investments), Altamount Capital. "Indians and Chinese have been traditional investors in gold. But now several investors in Western countries who didn't have any exposure in gold are buying it even at higher prices. Now, several family offices have advised their international clientele to have 5-10% of their entire financial portfolio to be invested in gold," Karpe adds.
There are several factors that support the higher prices of gold at current levels. Also, Indians associate buying gold with the festive season and auspicious days, which are around the corner. The expected increase in demand during the festive reason will only push up the price of gold. That is exactly why experts ask investors to hold on to their gold investments for some more time.
"I will not recommend any investor to book profit now because of the ongoing domestic and global uncertainties. They should hold on to their investments in gold for now," adds Richa Karpe.
As for new investors, experts ask them to limit their exposure in gold to 5-10% of their total portfolios. "If an investor has less than 10% exposure in gold, he/she can increase it up to 10% in a staggered manner," says Amar Ranu, senior manager (wealth management), Motilal Oswal Wealth Management.
NEW INVESTORS
"Even though the price of gold has touched new peaks, an investor can enter the market through the SIP route today as it takes care of the average cost. This is because the price of gold is going to rise further from here given the uncertainties coupled with the upcoming festive season," says Ranu. "Certain brokers are offering SIP facility in gold ETFs. However, an investor should avoid investing lump sum amount in gold today as you cannot time the market," he adds. "For retail investors, gold ETFs are the preferred vehicle for investing in gold. While they do charge an annual fee, they are more tax efficient than physical gold, easily tradable, available in small denominations and can be kept in demat accounts," says Rishi Nathany, CEO, Dalmia Securities. In case of gold ETF or a gold fund of funds, the investor will not see physical gold. Hence the custodian of the gold or the AMC should be trustworthy and be financially sound.
Investors who don't have a demat account can consider gold fund of funds which invest in gold ETFs. You can invest in physical gold by buying gold bars or coins, but it comes with disadvantages like storage costs and wealth tax. Moreover, you have to conduct due diligence on the purity of the gold before buying. "The form of investment also depends on the end-use of gold. If parents are investing in gold to make jewellery for their children in the future, I would advise them to invest in coins/bar. If it is for retirement or just another investment for retirement, I would recommend ETFs as they act like quasi cash," says Suresh Sadagopan, certified financial planner, Ladder 7 Financial Advisories.
THE WAY AHEAD
"However, as an investor you should know that even as gold prices have run up in the recent past, it does not offer you an interest income unlike other instruments. It does not even offer a dividend like equity instruments. It offers capital appreciation in line with gold prices," says Rishi Nathany.
Also investors have a tendency to chase a single asset class when it runs up in one direction. "You should stick to your asset allocation strategy. You can be marginally overweight on gold now and underweight on another asset class because of the external factors. But you should never pull out all your money from other asset classes and move it into gold," cautions Richa Karpe.
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Offers introductory fee of . 25 lakh against NSE's . 1.5 crore for equity and derivatives, puts net-worth requirement for brokers at . 30 lakh
MCX Stock Exchange (MCX-SX) kicked off its membership drive on Wednesday with an introductory offer of . 25 lakh for its equity and equity derivatives segments, marginally lower than BSE's and significantly below NSE's . 1.5 crore for both the segments.
However, the bourse said the introductory offer would be valid only till October 18, after which the charge would be doubled.
Most brokers termed the offer "fairly good" and said pricing was an important factor as people were putting money on a new exchange that was yet to stand the test of time.
"We would like to avail of the introductory offer, which I think is fairly good," said Nirmal Jain, chairman, India Infoline. "Most large brokers typically like to be members of all the exchanges and so I'd say pricing is important, especially when it's a new bourse that has yet to reckon with competition." Agreed Motilal Oswal, chairman, Motilal Oswal Financial Services. "I would say MCX-SX's offer is pretty attractive..... Over a period of time, I think most of us would like to see product differentiation with respect to new index or some such thing."
MCX fee for trading and selfclearing members on equity and equity F&O segments stands at . 20 lakh, and the admission fee is . 10 lakh. However, a . 5 lakh rebate is being given against transaction charges, making the total charge . 25 lakh.
Compared with this, a trading member pays . 1.5 crore for accessing both segments on NSE. The net-worth stipulation for an MCX-SX trading member is . 30 lakh against . 1 crore for NSE.
After the offer period, MCX-SX will charge members . 20 lakh each as deposit for equity and equity F&O memberships and . 10 lakh as admission fee, taking the charge to . 50 lakh. The deposit is refundable, usually three years after a member surrenders his/ her membership.
Sudip Bandyopadhyay, MD & CEO, Destimoney Securities, felt most large brokerages would take MCX-SX membership. He added that the fee structure of MCX-SX could not be "too out of line" with the market. "I will take membership of MCX-SX, but I think, over a period of time, the fees would be hiked," he said. KR Choksey, chairman, KR Choksey Securities, said the response to the offer could have been better if markets were more "buoyant". Choksey added that he would wait and see how the new exchange fared before taking membership of it. |
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New Delhi/Mumbai: Continuing its upward swing, gold on Wednesday surged Rs 130 to a new all-time high of Rs 31,980 per 10 grams in the national capital on sustained buying by stockists amid a firming global trend.
However, silver met with resistance at prevailing higher levels and lost Rs 200 to Rs 60,000 per kg.
In Mumbai, the yellow metal surged Rs 160 to Rs 31,480, also a new high for the financial capital. Pure gold (99.9 purity) similarly rose by Rs 155 to finish at Rs 31,620 per 10 gm from Rs 31,465.
Silver ready (.999 fineness) rallied by Rs 325 per kg to conclude at Rs 61,325 as against Rs 61,000 previously.
In New York, gold surged to its highest level pinning hopes over further stimulus measures from global central banks to boost their respective economies. AGENCIES |
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