Archive

Archive for June, 2010

Link to RBI’s Report on BPLR

REPORT  OF THE  WORKING GROUP  ON  BENCHMARK PRIME LENDING RATE – http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/BPLRR_181009.pdf

Categories: Banking, Economic Growth

Tea industry in India

June 30, 2010 2 comments

I read an article stating India’s tea production may not be able to reach the 1 billion kg mark. This lead me to reading further in to the dynamics of the tea industry in India.

I have tried to put together some pieces of information on the Indian Tea Industry. Read more…

Categories: Agriculture, Tea

What will be impact of fuel price hikes in India

The Empowered Group of Ministers (EGoM) finally mustered up the courage to free fuel prices from the administered price mechanism (APM), in spite of huge political pressure.  In April 2002, the government had completely dismantled the APM. However, due to a surge in crude oil and petroleum product prices since then, the government had to again take control. Regulation of petroleum prices resulted in huge losses for three entities. These include the upstream oil companies (namely ONGC, Oil India), the petroleum refining & marketing companies (including IOCL, HPCL & BPCL) and the government. The government subsidised the essential petroleum products in the form of cash or oil bonds to PSU petroleum refining companies.

The panel of ministers said petrol prices would be market driven, rising Rs 3.50 per litre, while kerosene prices would rise by Rs3 a litre. Diesel prices will rise Rs 2 per litre and will be freed up in the future. Cooking gas prices were raised by Rs 35 a cylinder. Read more…

Tea industry in India revives

All-India tea production rose by 12.3% to 1.62 lakh tonnes during January-April 2010. The Southern states performed better than the Northern counterparts. The states of Tamil Nadu, Kerala and Karnataka recorded between 13-24% y-o-y growth. Production in Assam–the largest tea producing state in India, recorded a 9.6 per cent growth.

India is the second largest producer of tea in the world with production at 979 million kg in 2009. Following the prediction of a normal monsoon forecast by the India meteorological department, the Tea Board had earlier said that production in 2010 could be around one billion kg. However, achievement of that target looks dicey. Read more…

Categories: Agriculture, Tea

IMD revises 2010 monsoon forecast upwards

According to the latest forecast of IMD, rainfall over the country as a whole for the 2010 southwest monsoon season (June to September) is likely to be normal. Quantitatively, monsoon season rainfall for the country as a whole is likely to be 102% of long period average (LPA) with a model error of 4%.

The agency had in its 1st forecast for 2010 south-west monsoon had predicted normal rains at 98% of the LPA, covered in my earlier article. It has revised this forecast upwards to 102% of LPA.

A look at the rainfall during 1-24 June indicates a not-so-good picture. Read more…

Political Connections and Sugar Mills in India

We all are aware that sugar is one of the most politically sensitive sectors in India. Found a report by Sandip Sukhtankar on Political Connections and Sugar Mills in India.

The paper gives evidence of electoral cycles in outcomes of sugar mills in Maharashtra, India. Worth a read.

Categories: Sugar

Industry-wise financial performance in 2009-10

Financial performance reported by the top echelons of Corporate India (represented by sample set of BSE 200 companies) was marked by a sharp movement in parameters across quarters. The trend in annual performance was starkly different from the fourth quarter 2010. While sales grew 4.4%, net profit surged 16.5% in 2009-10 over the previous year. Sales growth has been slow during the year as revenues recorded a YoY decline in the June and September 2009 quarters. Pick-up in demand for automobiles and metals and rise in commodity prices led to higher sales. Read more…