S Paper Headline Impact Analysis

r.
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o
1 Hindu
a. Aug 3 Kharif sowing picks up Sowing to touch 54 Because of increase in
pace after copious rain mha in 1st week of rains there is increase
august in sowing area which
leads to increase in
production, which
finally leads to
decrease in price
Aug 3 Signaling a shift to The NAC’s
universal PDS recommendations on
food security measures
take heed of the fact
that PDS reform is
dependant on the
availability of enough
food grains
b. Aug 4 Foreign investment in Wastage in supply
retail can help reduce chain and the
vegetable , fruit commission to trade
prices:crisil intermediaries inflate
the final price
c. Aug 7 Harvest price for Prices may rule in the
potatoes not range of Rs.650 to Rs.
encouraging 700 a quintal
2 Financial
express

a. Aug 2 Retailers body pitches Currently ,100% FDI is

for FDI in non-food permitted in wholesale
segment cash and carry biz,
subject to certain end
sale limitations and
restrictions
Aug 2 Argentina ,India to take Argentine minister
up agri exports issues Dominiguez is likely to
ink three pacts during
visit
Aug 2 High turmeric prices Acreage under turmeric This will lead to
encourage farmers to has gone up by over decrease in prices of
 shift from chilli, maize 20% in Andhra Pradesh turmeric

b. Aug 3 No plans for tax on Government may levy To maintain the price
(Pg no.17) wheat imports : Pawar tax on import stability of wheat in
Reason: Though India depending on progress the country it is must
has huge stocks of of June-September to impose tax on it
wheat some of the monsoon, a key factor otherwise all traders
millers from southern in summer sown will prefer importing
region import high harvest. the wheat and wheat
protein wheat from produced in the
Australia which works country will remain as
out to be cheaper for it is.
them because local taxes
and high transit cost
makes domestic wheat
from northern region
relatively costly.

Aug 3 Advisery panel to take At present the If any increase in

up PDS revamp today government through procurement would
(page 17) FCI procures close to result in increase in
30% of total rice and price.PDS reforms in
wheat production in the procurement,
country. transportation &
storage food grain.in
this new proposed
plan include 200
poorest districts.

Aug 3 Bunge scouts for palm US agribusiness group Due to rapid economic
plantation in Indonesia. Bunge ltd. is actively growth in china &
scouting for palm india has boosted
plantation in Indonesia edible oil demand,
& Malaysia to cater to largely met from palm
asian demands led by oil.
india &china the
world’s biggest import
of vegetables oils.
 Aug 3 Exports surge % as Inventory restocking Exports increased on
order revive cycle is one of the the back of higher
(page 2) reason for the high demand for Indian
growth in exports now. gems and jewellery,
textiles, petroleum, oil
and lubricants and
engineering

c. Aug 4 Rubber hits a record Rubber prices in India

high on demand spot market rose by Rs.
Reason: Good demand 50 to a record Rs.
from tyre and firmness 18450per 100 kg.
in Tokyo market rubber
prices rose.

Aug 4 Rain kindles bumper Because of good rain Compared to last year
gaur output prospects sowing is completed in this year progress of
Reason: A week of 75-85% of 2.69 million sowing in India is
ample and widespread hectares target. Last good. Country can
rain in Rajasthan has year only 1.39 million expect good output
injected momentum to hectare was planted this year.
the planting of gaur seed although the target was
in the state. 2.58 million hectare.
Another spell of good
rainfall is necessary to
sustain good growth.

Aug 4 Global trend high stocks Out of national demand Next year prices of
keep edible oil stable 14 million tones, 7.5 edible oil may
tons was met through increase as production
Reason: The prices are of Malaysia will be
local production last
stable since last 1.5 decreasing.
year and remaining was
years and will remain imported from
stable for next six Indonesia, Malaysia
months as there are (Palm oil) and
efficient stocks (about Argentina, Brazil
1.1 million tone). (Soyabean and
Satisfactory monsoon sunflower oil). As the
has indicated rise of plantations of Malaysia
production. will be replanted next
year Malaysia’s
 production will
drastically fall.

Aug 4 Wheat looks north as Indian traders are not Price reduction in case
droughts hits Russian much excited because, of Indian wheat
supply produce is must if
1.Government of India country is planning to
Reason: Because of does not allow wheat export the produce in
severe drought in Russia export. order to stand in the
output is expected to 2.Even if it allows global market.
drop by 19% to 50 private traders won’t
million tons this year have excessive stocks.
and export may decline 3.Indian wheat is more
23% to 14 million tones. costlier so difficult to
find out buyers.
International market
prices of wheat :
a.India - $ 330/tones
b. Australia and
Argentina - $ 260 to $
270/ tones

d. Aug 5 Pepper rallies on stock Countries like Brazil As competitor

holdings and Indonesia are countries are selling at
quoting lesser prices lower prices than
Reason: Indian pepper than India. US bought India, india have to
market is rallying 6500 tones pepper in think about it
despite drop in the July almost 50% more otherwise consumer
export because of strong than its normal countries like US will
speculative interest and consumption and ignore Indian produce
stock holdings by cash stocked them. It may and will turn to other
rich farmers. Farmers turn harmful to Indian countries.
are demanding the price marketers as they may
of Rs. 230-250 and have ignore us. Vietnam sold
cash power to hold back 85,000 tones globally
supply. This rally is and still has stock of
because of low supplies. around 25,000 to
30,000 tones.
Agriculture market
intelligence centre
 (AMIC) expects prices
are likely to rally by 15-
20% in 3 months.

Aug 5 Coconut board targets Coconut Development India has very good
Rs. 600 Cr exports. Board is planning to opportunity to market
Sets eye on the US, increase its export coconut produce. It
Russia, Germany, West earnings by 36%. can target very good
Asian markets. Exports for global market.
2008-2009 – 329.80 Cr.
2009-2010 – 442,56 Cr.
With the eye on export
market board has
developed many value
added products in
association with leading
research institutions.
Board is also exploring
possibility of exporting
particle boards made
from soft wood waste
and coconut oil based
herbal formulations.

Aug 5 Festive vegetable oil India’s festive demand Weakening the

imports to rise 10% for vegetable oils may imports of edible oil
rise 10% to 2.25 million will helps to improve
Indian economy.
tones but an improving
monsoon and farmers
holding huge oilseed
stocks may weaken the
pace of imports.

Aug 5 Paddy sowing gathers Paddy production in Climatic factors may

pace with rains 2009-10 fell by 14% to help to increase the
Reason: Paddy sowing 89.13 million tones. production.
is in full swing except in This year it was
Bihar and Jharkhand expected to be 100% as
because of insufficient for previous year it was
rains. Also there are 99.18 million tones.
flood damaged areas. Country’s food
 grain production
dropped from 234.47
million tons to 218.2
million tons this year.

Aug 5 India set to become India is 5th largest India has very good
global hub for leather exporter of leather opportunity to increase
products goods and accessories its share in world
Reason: Availability of in world with the share market and be a global
right quality raw of 5% to 6% and its hub for leather
material as per export for the year is products and
requirement of $756.02 million. accessories.
international market
along with skilled
craftsmen.

e. Aug 6 Food inflation declines food inflation declined compared to last year
(page 2) marginally for second marginally to 9.53% for vegetables,potato were
week in a row week ended july 24 cheaper by 41% and
from 9.67% reported in onion by over 4%.
previous week .the
decline mainly because
of cheaper veg., fruits
& sea fish.

Aug 6 Sugar consumption to Driven by the continued The growth of sugar

(page 12) grow at 3%: imac switching from gur to demand by food
sugar, rising income industries & other non
and growing household users ,
population. estimated to account
for about 60% of total
consumption, could
provide additional
impetus to longer term
market growth.

Aug 6 FAO cuts wheat output FAO has lowered its World inventories
forecast but considers 2010 global wheat have been replenished
supplies adequate. production forecast by sufficiently after two
4% to 651 MT as worst consecutive years(in
drought in 2008-09 & 2009-10

Aug 6 Millers to government:
allow export of imported
sugar piled due to
railway wagon shortage.
Aug 6 Cardamom prices
(Page 17) remain firm for second
year in a row.
f. Aug 7 Wheat nears two years
high on Russia export
ban
Reason: Russian P. M.
imposed ban on export
from 15th Aug till end of
year which may be
revised depending on
result of harvest season.
Aug 7 Tea production exports
likely to be flat this year
Reason: Because of
adverse weather
condition and pest
attacks specially in
assam region.
Russia,Kazakhastan are 684 MT 682 MT
&Ukraine. respectively ) in of
bumper harvest and is
enough to cover the
world wheat balance
on August 4, 2010.
Traders says about
7,50,000 tonne of sugar
is standard at the
western port of mundra
because railway have
been asked to use their
wagon for transporting
fertiliser inland.
Due to low production
in Guatemala according
to AMIC of kerla
agriculture university
5 million tones of High prices could
wheat will not be drive food inflation in
available in the market. key buyers such as
Wheat prices
Indonesia and
will rise to peak of $
8.41 a Bushel. Philippines.
Shares of the There is probability of
food companies using upward adjustment in
wheat as a input will retail prices of wheat
show decline. and its derivatives.
North India witnessed a Tea prices have been
decline of almost rising for the past 1
15million kg(Assam 13 month due to lower
mkg and West Bengal 2 crop in June.
mkg).
Average price of tea
increased by Rs. 7/ kg.
 Aug 7 India to export grains to Export of 30000 tones
Bangladesh of non basmati rice and
20000 tones of wheat is
allowed by Indian
government to
Bangladesh.

Aug 7 Mills owe Rs. 1151 Cr UP- Rs. 637.42Cr.

to cane farmers. TN- Rs. 108.56Cr.
Karnataka- Rs.
189.10Cr.

g. Aug 8 Even as the malls There are a hot of

(page 5) allowing direct entry of funds providing foreign
individual foreign retail investots to
investors into india exposure to the
stock market.over 150 burgeoning Indian
such funds with a corpus economy.
of whopping $70 billion
exist today

3. The
Economics
times
a. Aug 2 Premium tea prices soar Heavy rains & pest Premium tea prices
attack affect has risen up due to
production. heavy rain and pest
attack. The major
growers are watching
on the strategy to be
adopted by key
players like TATA
Tea & HUL .
b. Aug 3 Sugar prices drop It depends on market sugar price has
further on good supply condition. dropped due to good
supply & poor demand
from retailers.
c. Aug 4 M’rashtra cane output to Farmers are shifting Maharashtra is
surge back to sugar cane expected to see a
because they are getting record cane production
good prices,” of 827.36 lakh metric
tonne (LMT) during
the forthcoming 2010-
 11 sugar season.

With the estimated

increase in cane
production, the state
machinery is gearing
up to facilitate a
smooth cane crushing
by reviving 34 sick
factories.

The state has received

demands from
cooperative and
private sugar factories
for 84 cane cutting
machines.

This is due to the

labour shortage that
the cane growers faced
last year.

d. Aug 5 Cotton exports grew 137 cotton prices in the Cotton exports are
per cent at 83 lakh bales domestic market, the placed in the
in 2009-10 government has restricted category
recently restricted and exports are
exports of the fibre and permitted under
also imposed an export license.
duty

Aug 5 IGC reduces wheat Prices have dropped Offsetting the

forecast by back this week expected reductions in
on forecasts of drier exports by Russia and
conditions
Ukraine are significant
increases in shipments
forecast for the US
and Argentina, with
global availabilities
remain ample.”

e. Aug 6 Kerala takeover threat A large number of The kerla govt.’s

worries cashew industry cashew units decision to take over
relocated in Tamil
 Nadu district to the cashew industry
Mangalore in has worried the
Karnataka. cashew growers .
Therefore the industry
has demanded to
withhold the approval
of the amendment as it
has feared that the
proposed amendment
would lead to
unemployment among
the cashew workers

Aug 6 Govt defers decision on This FCRA bill is The FCRA

FCRA Bill essential for the (amendment) Bill, is
development of the unlikely to be passed
commodities of future
in the current
market & introduction
for new product. Parliament session,
with the Cabinet
postponing the
discussion on it amid
growing opposition to
futures trading by
several political
parties, but The bill is
essential for the
development of the
commodities futures
market as it
strengthens the
regulator by arming it
with financial
autonomy

f. Aug 7 Global wheat prices 5 million tones of High prices could

jump as drought hit wheat will not be drive food inflation in
Russia bans export available in the market. kay buyers such as
Reason: Because of Wheat prices will rise Indonesia and
severe drought in Russia to peak of $ 8.41 a Philippines.
output is expected to Bushel. Probability of upward
drop by 19% to 50 Shares of the food adjustment in retail
 million tones this year companies using wheat prices of wheat and its
and export may decline as a input will show derivatives.
23% to 14 million tones. decline.

Aug 7 Rubber use up 3.3% in Consumption of natural

April-July rubber went up by 3.3%
to 3.07 lakh tones.
Consumption by tyre
sector increased by
5.4% but by non tyre
sector declined by
0.3%.
Production is also
growing by 6.5% to
2.23 lakh tones.

Aug 7 Global campaign for Coconut Development

coconuts. board doing global
campaign for increased
market access. Four
member team visited
gulf for promotional
campaign.

Aug 7 Pawar : No decision to Sugar prices are Decontrolling the

decontrol sugar pricing reduced in Maharashtra Sugar prices will lead
and removal of sweetner but increasing in other to instability in the
from the purview of states. sugar market. Also
essential commodity act. prices will increase
Reason: Millers are with a lot of pace.
asking for decontrolling
of the sugar prices.
Government is asking
them to release the
predetermined quota
every month and is not
ready to give any relief.

Aug 7 Steel prices remain flat The crisis in the Steel prices on
in thin trade European markets and Saturday
policy tightening in remained flat in
 China the wholesale
market here in a
restricted trade.

Traders said adequate

stocks positions
against restricted
buying activity in
view of fall in
demand due to
rainy season
mainly kept prices
around previous
levels.

Aug 7 Copper remains weak on Price remains weak due Copper prices today
lower global trend to low supply and less weakened by Rs 2 per
demand from heavy kg on the wholesale
industry
market here on
sustained selling by
stockists in tandem
with weakening global
trends.

Trading sentiment
remained bearish after
copper fell for the
second straight day in
London after payroll
data added to signs of
fragile economic
growth in the US, the
world's second-biggest
metal user

Aug 7 Further rise in edible oil Commodity markets Groundnut oil prices
prices on persistent have been booming and moved up further at
demand second think is biofuels the oils and oilseeds
have boosted the
market here today due
demand for specific
food crops. to persistent buying
from retailers amidst
poor arrivals from
 producing belts.

Refined palmolein
improved further
owing to renewed
buying interest
coupled with higher
Malaysian advices.

Linseed oil shot up on

good inquiries from
the paint Industry.
Castorseed futures
also recovered on
fresh export orders

g. Aug 8 Oil settles lower a third The market will likely Crude oil prices fell a
day on jobs slump to have a weaker start third straight day
after the jobs figure due to job slump
come in worse than in US.
expected.
This has concerned
about being too
short at the
weekend with
turmoil
simmering in the
Middle East could
support oil prices.
Adding more
uncertainty to the
market, the UAE
said on Friday
that militants
attacked the
Japanese super
tanker that was
damaged in a
partial explosion
in the Strait of
Hormuz on July
28.
4. Business
line

a. Aug.2 Why pulses prices are Ban on exports, zero If retailers work on
ruling higher at the duty imports, storage reasonable margins,
retailers level? control, subsidized pulses prices can be
imports through public lowered by a least by
sector trading 20% from the current
enterprises and so have levels
yields are low.

Sharp rise in MSP, raise

brokerages, more
number of middleman,
APMC fees, cost of
transportation, storage
and handling and dal
milling expenses

Retail margin as high as

20-30%

Aug.2 Banks can make Opening up of the retail Such investments will
organized retail trade, especially food create employment,
inclusive. retail, for infusion of improve the supply
foreign capital would chain, improve the
contribute to supply marketability of
chain efficiencies, growers’ crop and in
improve growers’ general contribute to
incomes and help heighten the economy.
contain spiraling food
prices. The state can actively
encourage contract
farming. By the state
and the banks will go
long way in enabling
and empowering
growers and small
retailers.

Aug.2 Cocoa demand, area set Kerala leading in cocoa Directorate of Cashew
to increases. and Cocoa
 production (78% share). Development
(DACCD) plans to
Imports 7,026 tonnes bring 75,000 hac.
(2008-09). Next five under cultivation.
year expected demand
to go upto 30,000 DACCD spending
tonnes. Rs.77 Cr. Under 11th
Cocoa prices are double FYP
(Rs. 175 a kg)
Major producers:
Kerala, AP, TN and
KA.

b. Aug 3 Lack of demand flattens Due to heavy arrivals There is decrease in

sugar and lack of upcountry prices due to lack of
demand.prices dropped demand
Rs. 300-350 a quintal
last week
Aug 3 Profit-taking floors jeera Lower demand and Due to decrease in
spot , futures profit taking lowered demand jeera price
jeera prices on decreased
Monday .the price of
jeera in the spot and
futures market dropped
Rs.200 a quintal
Aug 3 Lack of demand flattens Sugar prices ruled flat Most stockist
demand due to heavy arrivals concentrated on
and lack of upcountry uploading of their old
demand. Prices dropped contracts and
Rs.300 to 350 a qtl. purchases.

Aug 3 Fresh arrivals, low Wheat prices dropped Big flour millers are
offtake pound wheat marginally to Rs. 1185 still out of the market
a qtl. following reports that
the FCI is likely to call
for tenders for the
open market sale
scheme to offload its
stock

c. Aug.4 Tea output down 12% in The lower production Average realization
June, export falls 15% was attributed to lower fell by 6.4% to Rs.
to lower rainfall, 123.48 per kg.
decreased soil humidity
 and increases in pest Tea prices have been
attack in some major rising for the past one
tea growing areas of the month due to lower
Country, especially in crop in June.
the North East.

Aug.4 Cardamom recovers on Some section of the With the onset of

festive season demand traders spread the word festival season starting
that supply will with Ramadan to be
outweigh demand as the followed by Dusserah
new crop would be and Diwali, buyers
better than that of the from north India were
previous season. This seen active and that in
led to the bearish turn made the market
sentiments. Bullish.

Price dropped sharply

to Rs.1,343.21 a kg. on
Sunday last from
Rs.1,639.51 the
previous Sunday.

Aug.4 AP traders’ buying fails Maharashtra millers Fall of Rs. 5-10 a qtl.-
to sweeten sugar have o sell large free S grade
sale quota of 17.50 lakh
tones last month millers Fall of Rs. 10-20 a
expected extension for Qtl.-M grade
July unsold quota but Local retailers demand
the Govt. didn’t gave was as usual.
any relief.
Higher rates in AP
diverted traders to
Maharashtra.

d. Aug.5 ‘Cartelization’ fails to The monthly release Demand for the sugar
sweeten sugar prices mechanism, under decontrolling.
which every mill is
allocated a particular
quota of sugar to sell in
a given month.

At the end of the month

there is no choice but to
 dispose of the entire
released quota.

Aug.5 Poor uptake keeps There is no upcountry Hence anticipating the

turmeric static: demand and only one or lower demand farmers
two traders have are bringing only
received order and to limited quantity of
fulfill these orders, turmeric to the market.
they are buying the
commodity.

The demand in north

Indian towns will be a
after 15th Aug.

Prices are expected to

go up.

Aug.5 Lukewarm demand Lukewarm demand in With the heavy

floors wheat the market has brought arrivals from UP local
down wheat prices by a stockists are also
Rs.15 a qtl. in the last 2 offloading their stocks
days. in the market and there
is not much demand in
The wheat market has the market. Due, to
is witnessing a decline this the wheat market
following reports that is witnessing decline
the Food corporation of in trend.
India will offload its
stock in market through
the Open market scale
scheme soon.

e. Aug.6 Food inflation rate eases Vegetable, fruits and RBI’s appropriate
marginally to 9.53% cereals contributed to monetary policy has
the slowing food helped efforts to curb
inflation rate. prices by mopping up
excess liquidity.
Primary article group
declines 0.2% as Food
articles group index
dipped 0.2%.
 Non-food articles rose
by 0.1%.

Aug.6 Continued buying by Mills are covering for Using the cotton
mills, exporters sees season end, exporters purchased in the
cotton bloom. too are buying to fulfill market, 40-count yarn
orders. This has may be produced by
strength the prices. spinners. The demand
Cotton will be traded for 40-count yarn is
between Rs. 29,500 and high in market and
Rs. 30,200. also fetches good
prices.

Aug.6 Poultry products hatch With the austere month

gains of Aadi in the South
India and Sravan in the
North India getting over
soon.

Egg prices increased by

3 paise

Chicken prices
increased by Re.1.

Aug.6 Weak consumption pulls Sugar prices continued International sugar

down sugar. to fall on the Vashi
wholesale market with
prices dropping Rs.10-
20 a qtl. due to lack of
local demand and
continued selling by
mills.
prices ruled steady on
speculation that
production next season
may be large enough
to allow India to
Export.

f. Aug.7 Rains, higher prices Farmers have this time Farmers planted a
drive cotton acreage to been inspired to expand record of 103.365 lakh
record. cotton planting on Hac. under cotton (Bt
account of good rainfall cotton-91lh)
(especially in MH and
AP) and also
remunerative price
prospects.
 Aug.7 Tea output likely to be Loss of North Indian The countries overall
same as last year crops in May, June and tea production in the
July due to heavy rains current fiscal might be
and pest attack. more or less same as
last year.

Exports should be
around last year’s 200
million kg (Bags).

5. BUSINESS
Standards
a. Aug 2 Tata pepsi JV to first To provide drinking The Indian packaged
focus on affordable water at only Rs. 30/ water market is
packaged water month for family of already worth Rs.
five. 1500 crore to Rs. 2000
crore & contributes
15-20% of overall
packaged beverage
industry, which sees
around Rs.12000 crore
of annual sale.

b. Aug 3 Area under castor rises India’s two major

80% in Gujarat castor seed &
groundnut growing
states AP and Gujarat
receiving adequate
rainfall in July, area
under these two crops
increase remarkably
this Kharif season.
Gujarat castor
production increase to
area 90,000 ha from
50000 ha in same
period last yr. So, it is
expected that there may
be a downfall of prices
of these two
commodities and the
 stockiest may try to
clear the stock.

Aug 3 Cotton use outpaces India’s cotton High area and almost
production first time in consumption is likely to stagnant output means
5yrs. surpass production in productivity will fall.
2009-10. Cotton shows
a decline in the
productivity first time
in the last five years.
Cotton Advisory Board
estimated total output at
29.5 million bales
against overall
consumption of 33.3
million bales. The
shortfall of 7.01 m
bales is likely to be
adjusted through
carryover stock from
the previous year. Total
area under cotton this
yr is 10.33 million ha
from that of 9.41 m ha.
Total yield is estimated
at Rs485/kg from that
previous year of Rs
524/kg.

c. Aug 4 Slowdown in China Prices of the China has huge

cools Global commodity commodities across supplies of
prices class have been falling petrochemicals and
polymers
since middle of April,
when China clamped
down on property
speculation and
introduced tight credit
controls. Overall prices
of metals are lower by
 8-24% since April. RBI
is optimistic that this
fall in commodity price
will help moderate its
own strategy for
managing inflation.

Aug 4 Iron ore export ban The Karnataka Govt. To curb the illegal
compounds problems of has banned the export export from the state
industry. of iron ore as well as
suspension of permit to
transport iron ore for
export from the mines
to curb illegal export.
Aug 4 Natural rubber output up The seasonal monsoon Due to the favorable
9.6% in June-July production of natural climatic factors
rubber has increased favoring the yield of
the crop
moderately in June-
July. Production
increased to 114500
tons from 104505 tons.
The farmers are
investing more on rain
guarding as the
commodity is fetching
high price in the
market. The price of
RSS-4 is at Rs 185/kg
at present. Contrary to
production
consumption pattern of
the commodity has
grown at a slower pace
in April-Jul as it
increased to 307550
tons, growth of 3.3%.

Aug 4 Tea production in Jun In Jun max crop loss : continuous decline in
declines on rain, pest was reported from production is due the
attack Assam & WB. The impact of heavy rain
decline in June from
 Assam was 13mill kg and slow recovery of a
and that of WB is 2mill pest Helopeltis.
kg. The Export from NI
have decline by 2mill
kg but that export from
SI have increased by 12
mill kg. overall from
Jan- Jun total export
was 84mill kg with
forex earning at Rs1036
crores against 75 mil kg
valued Rs 984 crores
last yr.
Aug 4 Crude oil hits 3 month Oil prices pushed up to
high fresh 3 month high
around $82/barrels on
Tuesday spurred by a
fall in the dollar.

Aug 4 Adani buys Aussie coal India’s biggest coal The plan is to import
assets in$ 2.7 bill deal importer Adani coal to feed its power
Enterprise has acquired project in India.
an Australian coal
assets in a cash royalty
deal worth $ 2.7 billion.
This would be the
largest single
investment by an Indian
company in Australia &
2nd coal acquisition
abroad for Adani.
Adani enterprise shares
gained 2.11% to close
at Rs622.55 on BSE.
Adani will take 4yrs to
begin operation.
d. Aug 5 Maharashtra to back Maharashtra Govt. will so that the state could
loans to revive closed provide a default for Rs get ready in the next
sugar mills 300 crore loan to revive cane crushing season.
34 co-operati ve mills,
closed for 2 yrs. The
bank concerned have
agreed to make loan
available to enable
 these mills participate
in the next cane
crushing season that
begins oct-1

Aug 5 FCI may lower wheat Unfriendly policies and The move is aimed to
lot size to bring small a lukewarm response to attack participation
traders to spot exchange wheat sales through from small trader.
National Spot
Exchange have forced
the FCI to consider
lowering the stipulated
quantity to sell the
commodity under the
Open Market Sales
Scheme to 10 tons from
current 100 tons.

Aug 5 Govt. may procure Due to the favorable

record 35% of rice monsoon effect the
output yield of rice will give a
pace in current year.
This will help the Govt.
to procure in sufficient
quantity from the
farmers.
Aug 5 IIM-A summer The Institute has In this process
placement from Nov-12 included the cohort companies will be
based system used in divided into groups
the final placement called cohorts based
process for the PGP on multiple parameters
batch of 2008-10 in such as roles , location
March. and salaries and
several cohorts will be
held in one cluster

e. Aug 6 Pepper prices may fall Lack of demand in As competitor

on poor demand domestic market as well countries are selling at
Reason: Pepper prices as overseas market lower prices than
creats pressure on
are likely to decline India, india have to
prices.
further as India’s stand US and Europe think about it
in global market have withdrawn from otherwise consumer
weakens due to highest market due to high countries like US will
 prices. prices and huge ignore Indian produce
inventory. and will turn to other
Indonesia, countries.
Vietnam, Brazil are
capturing market also
Sri lanka may become
further threat for India.
Aug 6 Cardamom exports in Total export declined to
Q1 decline 63% 235 tons compared to
Reason: Decline is due 635 tons last year.
to higher price For small
realization of Indian varieties decline is of
varieties in international 22% and for large
market. varieties is 84%.

Aug 6 Monsanto explores Monsanto is exploring Varietal crop are those

partnership with partnership with crops where the
government to offer new government to develop farmers can reuse old
biotech trait. new traits. They will seeds and doesn’t need
have to invest more fresh seeds for
than 500 Crores for cultivation again.
span 10 years. Yield will be
preserved throughout
the growing season.
So it will definitely
help to increase the
production.

Aug 6 More variety may raise It will make it more Lack of introduction
volume in coffee futures liquid in exchanges in of available variety
the near futures. acts as a major
Reason: Coffee futures Reduction in dampner to active
contracts trading on the lot size may result in trading. Robusta
Indian commodity involvement of small parchment, Arabica
exchanges need to and medium planters. parchment and cherry
introduce new varieties variety should be
in market with reduction introduced.
in lot size.
 Aug 6 More flexibility in Open market prices are
wheat distribution under less than FCI Prices So
OMSS (Open market there is price cut
Sales Scheme) expected.
3-9 tonnes of wheat per Scheme will
depot per firm each day help to offload the grain
would be distributed which is well above
under new schemes for their storage capacity.
the private traders for Price revision
which no tenders would for international
be floated. market.

f. Aug 7 FMC to join band of The Govt. have decided This will get powers to
independent regulators to designate the levy fines and
Forward Market penalties and allow
Commission as the
options trading in
regulator for this
market. At present the commodities as well
FMC is a part of the as commodities
Consumer Affairs Dept. indices.
which will soon
approach the union
cabinet for the approval
to introduce a bill
amend FMC act.
Aug 7 Coal India eyes 3
overseas acquisitions.
Aug 7 Wheat rises food shares Wheat prices in both Russia’s worst hit
fall on Russia Export US and Europe reacted drought ever since 130
ban on Friday but held just yrs
below two years high as
markets reacted to a
sudden imposition of a
ban on grain export
from drought hit
Russia.US wheat future
on Chicago Board
Trade fell 5% on Friday
after surging more than
20% earlier this week
& nearly doubling .
High price could
however drive fear for
inflation in key buyers
like Indonesia and
 Phillipines

g. Aug 8 Gold to glitter from next Demand for gold is set Due to the increasing
forth night to pick up after two demand in the festival
month lull with the season starting from
onset of festival season. the Raksha Bandhan
and continuing till
Dusheras in Nov.

Aug 8 Wheat woes Russia the world’s 3rd Supply of wheat in the
largest wheat exporter global market have
banned grain exports reduced due to the
until the end of the year recent ban on the
following a record export by the Russia.
drought. Almost
immediately wheat
future shot up to 2 year
high on commodity
market which raised
concerns about global
supplies.