Category Archives: Markets

Markets

Petrol to be cheaper by Rs. 0.95 per litre

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Petrol vehicle owners will have some relief from the government after the Diwali season as the prices will be cut by 0.95 per litre. The new rates of petrol will take effect after midnight on November 15, 2012. Earlier, petrol prices were revised on October 27, 2012, when it was raised by 29 paise to Rs. 68.19 per litre in Delhi, so that the government could raise the commission paid to petrol pump owners.

From November 16, 2012 petrol will cost Rs. 67.24. An official from the oil ministry said, “Other fuel retailers (BPCL and HPCL) will also reduce petrol rates”. At present international prices are relatively stable.

There has been a significant volatility in the exchange rate of the rupee and dollar. Currently the rupee is very week, with uncertainty about its future direction. In a statement, India Oil Corp said that the trends in the international market oil market and INR-USD exchange rate are being closely monitored and the same will also reflect on future price changes. Moreover, it cannot be ignored that oil companies are currently bearing the burden of losing more than Rs. 2000 crore in the sale of petrol in the period between April, 2012 and September, 2012 due to the inability to change retail selling prices to the desired extent.

Markets

Inflation and campaigns leave firecracker shops desrted during Diwali

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The Diwali season has arrived but the firecracker business was the worst one to be hit despite being peak season time. The crowded streets at Sadar Bazaar, Delhi, which is the largest market in North India has some 70 odd shops, but unfortunately they looked unusually deserted for the Diwali season.

Firecracker vendors said that this was their worst Diwali season yet, as sales were 60% lower than last year. The low sales were due to price hikes and rising awareness about the impact of firecrackers on the environment.

One shop keeper said that never in his 20 years of selling crackers did he have to stand outside his shop to attract customers. He added that usually at this time of the year, customers would crowd his shop and his employees would have a tough time managing their demands. Now it appears as though times have changed.

Over the past ten years, schools across the city have been discouraging students from bursting crackers while making them aware of the ill-effects of noise and air pollution that they cause. Even the government has been running public awareness campaigns against crackers. Another reason of the cut in sales is a price hike. The prices of crackers have risen by 30%, as compared to last year.

Markets

Dairy companies begin purchasing skimmed milk powder to avoid summer shortage

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Many Indian food, beverage, milk and ice-cream companies like Nestle and Vadilal have already started purchasing skimmed milk powder (SMP). The companies have started purchasing skimmed milk powder six months in advance, so as to manage a potential shortage of the item which might hit them in the summer months.

At Rs. 140 a kg, the current prices for skimmed milk powder are also 10% to 15% cheaper than the previous year, owing to huge stock in the country. However, with international pricing undergoing some changes, companies are expecting to see the price of skimmed milk becoming bullish in the upcoming days.

Rajesh Gandhi, the MD of Vadilal Industries said, “Compared to the previous year, the prices are cheaper by 10%. We have started making small purchases”. The ice cream manufacturer is set to procure 1,700 tonne SMP in the upcoming months. The company reaches a peak capacity of 3.75 lakh litres in summer.

The prices of SMP have fallen from Rs. 160 a kg in a month of February this year to Rs. 140 per kg . As prices are currently moderate compared to previous years, purchases have begun in advance. The food and beverage companies are expecting a price hike to hit in the near future, due to which purchases have begun well in advance.

Markets

Vegetable prices come down due to improved supplies

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In recent days it has been noticed that the vegetable prices in India have come down. The stability in the prices of vegetables has come due to improved supplies to vendors. Traders expect that the prices might fall further after the Indian festival of Diwali which will help in easing food inflation.

In the month of September, headline inflation had reached a high of 7.81% which was a high point for the financial year, due to the increase in the prices of wheat and cereal; the price of these products was increased due to the hike in diesel prices.

In the month of September it was noticed that the food inflation has slipped to 7.86% from 9.14% in the month of August. Pradipta Sahoo, the business head at Mother dairy said, “Vegetable prices are softening each day”. Sahoo also pointed out that cabbage, beans and other green vegetables have become cheaper over the last fortnight by 10-30 percent.

On the other hand the West Bengal government has set up a task force which will have a check on the market prices during the festive season. The team has collected market prices by visiting the corporation market in Kolkata.

Markets

Aircel to cut 600 jobs due to surging costs?

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Telecom operator Aircel is expected to cut some 600 jobs, or 12% of its workforce in the near future. The company took the decision to reduce its workforce in six of its un-profitable regions, due to surging costs as well as severe margin pressure.

The company will be reducing its operations in the states of Rajasthan, Haryana, Punjab, Madhya Pradesh and Gujarat. Aircel has about 66 million customers in the country, and will be reducing its operations to cut costs and reallocate to profitable zones.

The company has 800 employees and 6 million customers in the five circles it intends to target. Aircel is an Indian arm of Malaysia’s leading telecom operator ‘Maxis Berhad’. The company is the country’s fifth largest mobile carrier, in which Maxis owns 74%. Aircel will be testing its new policies in the state of MP where it will rely on its intra-circle roaming pact with Tata Docomo for coverage, handling customer acquisitions and recharges in the state. The services will be online as well, doing away with the need to have personnel physically present in the state.

One of the company executives, who is aware of the development said that if the MP pilot is successful then the new business model will also be extended in other circles as well where business is not doing well.