Category Archives: Economy

Economy

Sugar prices go up on retail demand

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With some signs of more inflation, the spot sugar at Vashi market went up to ₹30-₹40 per quintal on July 3, 2012. This marked a rise of about ₹10-₹20 in mill tender rates due to the lower output projections for 2012-2013 on deficit monsoon.

During the higher beginning of the month local demand, the naka rates went up by ₹30 per quintal. The traders said that the sentiment was firm. Jagdish Rawal of B.Bhogilal and Co. said, “higher retailers demand in the beginning of the month and slower pace of selling by mills on expectations of higher demand and higher price in coming days brightened the sentiment. Deficient rain across the country and concerns over production and yield is another factor fuelling the bull run.”

Rawal added that the crushing season is now over and the new season will begin from the month of October. There have also been reports of some fresh buying in Maharashtra from the states like Gujarat, Rajasthan and Madhya Pradesh.

On case the purchases from the East also join, which is lacking for Maharashtra, then the prices may rise faster. 45 tonnes of free sale has been declared by the government for quarterly quota for the month of July-September.

Banking Business Economy Markets Personal Finance

RBI says 9% of banks in India don’t want to lend to poor

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There are many banks in India which show reluctance to lend money to the poor. This is in turn is effecting the implementation of Prime Minister Manmohan Singh government’s financial inclusion scheme.

The Reserve Bank Of India (RBI) has found that about 9% of the banks out of 92,690 in India are the most reluctant in lending. The credit ratio is less than 25% and loan disbursals through these offices fell by 15.4 percent year by year to December 2011 against a 4% rise in the corresponding period in 2009-10.

People who have limited access to institutional credit borrowed even less last year amidst the slow economy and lesser opportunities to engage in economic activities. On the other hand, banks have created the infrastructure to reach out 74,200 odd villages in the last couple of years, but these are yet to turn in to profit centres despite the fact that they have opened crores of no-frill deposit accounts.

Such branches are yet to earn any meaningful revenues in the absence of any big lending activity. Moreover, they also do not offer remittance facilities or sell risk covers which are other avenues of earning revenues.

At present the regional rural banks are the only group which reported a rise in lending through their most reluctant branches.

Economy

Eurozone Crisis : Greece government to agree on renegotiation

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There are possibilities that the government of Greece might agree on June 19, 2012 to form a government to seek relief from the austerity measures which is imposed as measures as a condition for emergency loans. Fotis Kouvelis the Democratic Left leader after a meeting with Pasok leader Evangelos Venizelos in Athens said, “Agreement on a policy roadmap is the definitive point to form a government”. Kouvelis added, “The process is speeding up. It is possible that in the next few hours, or within the day, a government can be decided.”

The parties, in coalition with the New Democracy’s Antonis Samaras who won June 17 Elections, will be the junior partners. If the three team up then they will be holding a majority of 179 seats in the 300 members Greek Parliament.

Samaras is now trying to form a new Cabinet of traditional rivals to negotiate changes to some of the austerity measures linked to the 240 billion euros pledges by the international lenders. After a round of talks with Kouvelis, Venizoles the former socialist finance minister said that there was an initial agreement on the policy framework for the new government.

They agreed on the need for the negotiation team including people from outside parliament.

The Eurozone crisis has affected global financial markets and economies.