Agriculture Minister Sharad Pawar has said the decline in prices of most agricultural commodities in coming weeks will bring down the food inflation, which is 12.63 per cent now. "Prices of most agricultural commodities are coming down. It is great relief to consumers. The trend of food inflation will continue to come down in the coming weeks," Pawar told reporters on the sidelines of a sugar conference in Delhi.
Food inflation declined for the second consecutive week to stand at 12.63 per cent for the week ended June 26. "Food inflation is coming down day by day," Pawar said. However, economists believe that food inflation would continue to remain in double digits for some time now as the impact of fuel price increase would be seen going ahead.
Substantiating his view, he said India is likely to have bumper food grain production in the 2010-11 crop year on the back of a good monsoon and a rise in area under cultivation. Food grain production dropped by seven per cent in the 2009-10 crop year (July-June) to 218.19 million tonnes from a record 234.47 million tonnes in the previous year because of a severe drought that hit almost half of the country.
"The way sowing operation is undergoing and reports of good monsoon from the states, we are likely to have a bumper crop (production) this year," Pawar said. Earlier this week, the minister had said that area under kharif crops such as paddy, oilseeds and pulses is expected to be higher this crop year vis-a-vis the preceding two years.
Tisco To Raise Steel prices
"Globally, raw material prices have gone up. If producers don't pass on the price increase, their margins will be affected. We are hoping that we'll pass on the increase in raw material cost on to the customers ", says Balasubramanian Muthuraman, Managing Director of Tata Steel, the world's sixth largest steel producer.
While hinting at increasing the prices of steel , He revealed that though the demand for steel both in the domestic and international markets is growing, the cheap imports from China, which has overcapacity, continues to be a challenge. He, however, declined to indicate the quantum of the proposed increase in prices and when would it come into being.
"There are positive trends in the international markets such as the US and Europe” he said.
Vivek Mahajan To Head Research At Aditya Birla Money
Aditya Birla Money has appointed Vivek Mahajan as Head of Research. Before joining Aditya Birla Money, Vivek held the post of Senior Vice President and Head - Equity Research and Advisory Function in HSBC InvestDirect Securities Limited. Welcoming him, Kanwar Vivek, MD of Aditya Birla Money, says, “In today’s complex world of financial services, we believe that research plays a crucial role in carving out the right investment strategy for investors. We are confident that Mahajan with his rich research background and expertise will contribute to this important function and help to grow our business significantly.”
R.M. Malla Appointed CMD of IDBI Bank
R.M. Malla as Chairman & Managing Director of IDBI Bank Ltd. Prior to taking up his current assignment he was Chairman & Managing Director of Small Industries Development Bank of India (SIDBI). Malla is an M.Com with an MBA from the Faculty of Management Studies, University of Delhi and is also a Certificated Associate of the Indian Institute of Bankers. He has wide experience in both project finance and resource management related areas.
UBI To Raise Capital To Fuel Growth
United Bank of India (UBI) would raise capital from various avenues to meet credit requirements for the next three to five years.
"More capital is needed to sustain growth. The credit offtake is expected to be more than 22 per cent for which more capital is required," chairman and managing director of UBI Bhaskar Sen said at the bank's first AGM In Calcutta on Friday, reports PTI.
UBI entered the capital market with an IPO and raised around Rs 300 crore. Sen said that capital would be raised either by issuing Tier I or Tier II bonds. "We may also seek money from the government as well," he said.
Sen said that the bank had fixed the base rate at 8.25 per cent. He added that the bank had also fixed the upper limit, at 14.25 points beyond which it could not charge more interest.