Commodity market

View Commodity market and over 3,000,000 other topics on Qwiki.
Diesel price decontrol likely to debut with cash subsidy transfer to farmers The proposed diesel price decontrol may come sooner than expected with a special scheme to insulate farmers from its adverse impact through a cash subsidy. Initially, state governments will be responsible for delivery of the subsidy, the cost of which will be borne by the Centre. When the Aadhaar technology platform becomes operational, it will be used for transferring the subsidy. The UPA government is acutely aware of the need to make the diesel price decontrol palatable to allies like the Trinamool Congress and the Samajwadi Party. At the same time, there is a view that differential pricing of diesel could lead to market distortions and hence the move to provide farmers a fixed amount of cash subsidy instead. Achieving the Centre’s fiscal deficit target of 5.1% of GDP for 2012-13 is heavily dependent on diesel price decontrol and building a political consensus for this is high on the government’s agenda. Although the exact quantum of cash subsidy for farmers is being worked out, sources said given the current level of diesel consumption by farmers, this could be around R11,000 crore. About 14% of diesel consumption is in the agriculture sector. (Source: Business Line) Rs 423-cr Nabard loan for Narmada link projects The National Bank for Agriculture and Rural Development (Nabard) on Wednesday said it had sanctioned a loan assistance of Rs 423 crore to the Gujarat government under the Rural Infrastructure Development Fund for an irrigation project. The project, envisaging laying of pipeline to link the Narmada Main Canal with three major reservoirs in Sabarkantha district in North Gujarat, is expected to be completed by December 31, 2015. (Source: Business Line) Allow registration for cotton exports: CAI chief The Cotton Association of India (CAI) has urged the Government to allow fresh registration for cotton exports. In a letter written to the Prime Minister, Dr Manmohan Singh, Mr Dhiren N. Sheth, President, CAI, said though the ban on cotton exports was revoked, registration for fresh exports are not accepted. This amounts to the ban on cotton exports continuing, he added. The development will lead to several international disputes and arbitration along with huge claims to be faced by those exporters who have contracted for substantial quantities, but not registered them with the Director General of Foreign Trade. Some of the exporters are already facing such claims because of a similar even last year, he said. (Source: Business Line) Rain forecast in April first week for north-west, north-east A US agency forecast has maintained the outlook for rains to return to north-west India and a tad heavier towards the north-east into first week of April. This could further delay rabi crop harvesting operations at many places in the plains of the north-west. The US National Centres for Environmental Prediction indicates that the rains may get better organised over north-west from the month-end. Seasonal thundershowers are predicted to grow in intensity towards north-east, adjoining Gangetic West Bengal and Odisha. (Source: Business Line)

For more information on commodity trading visit WhatIsACommodity.com