The decision of the US regulator not to allow financial institutions any further increase in their exposure to commodity futures leaves a question mark on the proposal to allow MFs and banks to trade in commodity futures in India. In India if mutual funds, banks, NRI's and Foreign Institutional Investors (FIIs) are allowed there should be limits fixed by the regulator regarding exposure to commodities. The price discovery function can happen only if there is liquidity.
Even as experts were debating pros and cons of the waiver, came the first-ever announcement in the history of commodity markets anywhere in the world the introduction of Commodity Transaction Tax and this, coupled with service tax imposed on commodity exchanges, was a blow to the nascent commodity Futures industry in the country.
A common man understands that there is inflation when he buys his usual list of commodities from the market. A simple definition of inflation is an increase in prices and or decline in purchasing power. Over the years, the definition of inflation has undergone a change. In India, inflation is a political issue but a lower inflation rate does not guarantee success in elections. But, political parties need to go by public sentiments, which are often against a rising inflation.
US experts were pondering on the safety of food imported into US from developing countries. In lieu of this thought process, a new trend has emerged in America of preferring locally produced food. This trend is affecting Wal Mart and Whole Foods too. It has been observed that when food travels far, the local community are the least benefitted out of the exports. But the trend to grow more locally will seriously affect nations that depend largely on agricultural exports.
With the introduction of CTT, commodity players raise their doubts about the fledgling futures market.
When green house gas emissions began to shoot through the roof an innovative solution was found by introducing the concept of carbon credits. If you pollute you have to buy carbon credits which add to the company's operational expenses or cut emissions and create carbon credits that can be sold.
As the next step in futures market, traders can consider putting CEOs, bollywood stars and cricketers up for trading in the market.
People now look for quality and purity of ornaments. They look for 916 purity and BIS hall marking. Here the large shops have an edge and variety. Large jewellery houses are now invading smaller towns and villages. For a 2,000-sq-ft showroom more than 25 salesmen would be required apart from interiors.
After banning plastic carry bags and promoting paper bags and cups, Kerala government is now promoting the use of waste plastic in laying roads.
Many of the spinning mills in Tamil Nadu are facing closure and several mills have curtailed production as against the usual practice of working 24/7 round the year. Among the reasons cited by the mills are hike in domestic cotton prices, appreciation of rupee value leading to stock piling of stocks, labour shortages and shortage of power.
Many of the spinning mills in Tamil Nadu are facing closure and several mills have curtailed production as against the usual practice of working 24/7 round the year.
Here is the story of a humble farmer who developed a unique cardamom variety called 'Njallani', but did not know how to apply for a patent.
And the apparel units in Kinfra Park are working hard to be in the good books of Wal-Mart
M E Meeran, a former wholesale dealer in provisions, is conquering the world with his Eastern brand of spices and curry powders.
Rubber dams have been found successful and cost effective in China, Bangladesh, Thailand and Japan.
E-krishi, Kerala State IT Mission's ((KSITM) online agri-business network, is making waves in the state with the pilot project in Malapuram district receiving tremendous response.
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