Skip to main content

News in numbers - August 6

7,000
Forward Markets Commission (FMC), India's commodities regulator, asked the National Spot Exchange Ltd (NSEL) to settle first the dues of 7,000 small investors who have outstanding of less than Rs 10 lakh each. NSEL was engulfed in a payment crisis last week as government asked the exchange not to offer forward contracts for which it did not have permission. This article raises important questions: the settlement guarantee fund (SGF) shrunk from Rs 839 crore on last Friday to Rs 60 crore on Monday. NSEL showed margin money from brokers as SGF, when it should be "should be carved out of brokers' initial deposit, profit, fines and initial capital." Another key question is whether there is enough underlying commodities to meet Rs 5,500 crore outstanding payment. 

51 months
Incoming work for India's services sector, which account for more than half of India's GDP, contracted for the first time in 51 months even as the overall Purchasing Manager's Index (PMI)- which measures services sector output- fell below 50 in July this year. A measure below means contraction. Despite this, managers have expressed optimism for growth prospects over the next 12 months

8 daysToyota has decided to stop production for eight days in a month since last quarter to match its output with slowing sales. The company joins a long list of other manufacturers who too are facing low demand as customers are postponing purchase because of high finance cost or are preferring to buy few new models launched this year. As compared to capacity of 310,000 units, Toyota sold 190,000 units in April- March 2013 and this financial year's sales will be even lower than this. 

Rs 50 per kilo
A kilo of onion is now retailing at Rs 50 per kilogram in Delhi, just few months before state elections. Many reasons are being cited: higher exports to Pakistan, heavy rains in neighbouring states destroying the crop, and farmers taking up other crops this year. Fresh stocks are expected to arrive later this month and it might help bring down the prices. High onion prices is cited as one of the reasons why BJP lost the Delhi elections in 1998, since then the Congress party has won successive elections. 

275,000
That's the number of people who avail free medicines and basic diagnostics provided by the Rajasthan Medical Services Corporation (RMSC) each day. The implementation of this scheme has helped Rajasthan reduce poverty level by 10 percentage points between 2009-10 and 2011-12. 2.1 million people used to be pushed into poverty each year because of higher medical cost before this scheme was announced. 


Comments

Popular posts from this blog

'koil madu' and myself........

'Koil madu' is a Tamil term used to describe the cows that are tied to the temple. It is there forever. In literal usage, the term can be used on people who spend loads of time at religious place. I might fit that description well. Haven't missed many Sunday church services. If I have to put a number, I would have attended 39 out of 40 years of Sunday services.

Last Sunday, the preacher at my Delhi church was referring to Ecclesiastes 11: 1 and 2. In the last few years, I have started to like the Message translation of The Bible. This version uses modern day language, yet it captures the true meaning of the root language. So I referred to the Message version when the preacher was mentioning these verses.

These verses I haven't heard before and it was sort of like an eye opener on what the Bible says on charity. I have been a 'koil madu' but haven't found this verse for this long. It was profound. Check out the verses:

"Be generous: Invest in acts of ch…

How not to spend taxpayers money

If you're wondering how best your tax money is spent, then you should look at how Telangana's Rythu Bandhu Scheme works. The state government decided that it will give Rs4,000 per acre as investment incentive to all farm owners. The biggest benefit would be farm mechanization by small landowners who otherwise may not have opted for machanisation. So far so good. 

Here is the interesting thing: the incentive per acre is given to all farmers irrespective of how much land is owned, or whether he is actually tilling the land. 

So a farmer with 200 acres of land, will pocket Rs 8 lakh of public money (money that you and me pay as tax), and in all probability, he is filthy rich and is not even tilling the land. 

Anyone with any semblance of knowledge of rural economy will say there are a vast number of tenant farmers (people who don't own the land, but they till and share a portion of the product with the landlord). Telengana government in its infinite wisdom decided not to include…

Happiness, street vendors, and negotiations......

Few days back I was watching a documentary series, "India's Frontier Trains". The three-part series was on trains connecting India with its neighbours - Bangladesh, Pakistan and Nepal. Yes, there is a train connection between India and Nepal, and that train is the only functioning train for the whole of Nepal.

In the episode on the train between India and Bangladesh, the program documented a life of a chocolate seller inside the train. He boards the train in the Bangladesh side of the route. A sole bread winner for a family of four, he earns by selling chocolates in the train.

He faces a perennial problem: because of hot weather conditions, his chocolates melt. In those hot days, his earnings are meager. A basic cooling device like this costs seventeen pounds and he couldn't afford that.

What moved me was the insensitive nature of some passengers in haggling with this struggling chocolate seller. They would force down the price by 10 pence or more (which is more tha…