India’s foreign exchange reserves cross USd 63 billion

MUMBAI, Oct 12: Continuing the upward march, India’s foreign exchange reserves crossed US dollar 63 billion during the week ended October four largely buoyed by the revaluation of the US dollar vis-a-vis euro and fresh inflows.

The country’s foreign exchange reserves rose by USd 538 million at USd 63,259 million in the reporting week, according to the weekly statistical supplement issued by the Reserve Bank of India here today.

During the six month period ending September 27 in the current fiscal, the reserves have gone up by USd 9.16 billion.

RBI said the foreign currency assets during the week ended October four increased to USd 59,949 million, a jump of USd 446 million.

Gold reserves also swelled by USd 92 million at USd 3,300 million while special drawing rights remained unchanged at USd 10 million, the apex bank added.

Aggregate deposits of scheduled commercial banks for the fortnight ended September 27 saw a rise of Rs 14,445 crore (1.2 per cent) at Rs 12,39,773 crore.

Bank credit at Rs 6,69,612 crore, registered a growth of Rs 13,402 crore (two per cent).

Food credit in the reporting fortnight declined by Rs 3,330 crore at Rs 52,947 crore while non-food credit increased by Rs 16,732 crore at Rs 6,16,666 crore.

For the week ended October four, loans and advances to Central Government, which had a nil balance, grew by Rs 1,563 crore while that to State Governments rose by Rs 923 crore at Rs 5,706 crore. (PTI)

India joins the Global Rice Trade

NEW DELHI, Oct 12: Brushing aside the political differences, India has joined the rice exporting ‘Asian countries’ block, with Pakistan as one of its member,

to eliminate undercutting and secure higher price for their exports.

Other member countries of the block are China, Vietnam and Thailand, which together command 70 to 75 per cent of global rice trade.

The countries that met at Bangkok on October nine last, have decided to "adopt a mechanism to help member countries, engaged in the rice export, to maintain their combine market share in the world trade and also to ensure stable price for the commodity.’’

The member countries have formed a council for Rice Trade Cooperation, which aims at securing better prices for the commodity by forming a cartel.

The members countries clearly underscores the point that by achieving better price for their rice export they could help the farmers get money for the produce.

They wanted to "improve the living standard of rice farmers of these Asian countries.’’

A secretary level meeting will follow this ministerial level meeting, which culminated into the formation of the council, early next year, probably in April 2003.

Of late, India has become the second largest rice exporting country with current annual export of around four million tonnes. Rice is a staple food in India and many other developing countries.

According to FAO forecast, the global production of rice during 2002-03 is expected to be about 397 million tonnes, the same that of last year.

The international trade in rice is expected to be around 24.1 million tonnes, of which around 20.3 million tonnes are estimated to be imported by the developing countries, while the remaining 3.8 million tonnes is to be imported by the developed countries. Hence there is an immense potential for the rice exports to the developing countries.

In fact, traditional rice exporting countries like Thailand, Vietnam and Pakistan are feeling threatened with the fast entry of India, hitherto a deficient in foodgrains, into the global rice trade.

But Indian official circles also doubt the intentions of these countries behind forming of the council, which is also being viewed as an attempt to checkmate India from exporting the commodity at the lower rate.

India was represented at the meet by Mr V Sreenivasan Prasad, the Union Minister of State for consumer affairs and food distribution.

India has mounted a surplus of around 20 million tonnes, around three times more than its requirement. The fresh paddy arrival would further mount the rice stocks.

On the other hand, Indian Agriculture Minister Ajit Singh has justified the forming of rice exporting cartel on the plea that the developed and rich countries have failed to stick to the time table of lowering subsidy to their farming sector as per the agreement of 143 nations World Trade Organisation (WTO) . This has distorted the global world trade in agriculture commodities and have kept the farm produce prices low for past 10-12 years.(UNI)

Haryana readies itself for VAT by April next year

CHANDIGARH, Oct 12: Haryana Finance Minister Sampat Singh today called upon the industry to join hands with the Government to educate and inform entrepreneurs, traders and general public about the advantages in moving to a VAT regime.

The industry, should allay concerns and apprehensions regarding VAT to ensure its smooth and efficient transition, he said.

Prof Singh was participating in a Conference on Value Added Tax organised by the Confederation of Indian Industry-Northern Region (CIINR) here today. He stressed on public involvement and participation at the grassroots for the successful implementation of the new tax regime.

A uniform tax syuslem, he said, was essential for India to become competitive in today’s global environment of rapidly shrinking barriers and distances.

Prof Singh said Harayan was fully committed to implementing VAT in April 2003. The state was prepared for the transition by the earlier deadline of April last itself. He said to change over to a comprehensive vat system it was imperative that all the States and the Union Territories achieved consensus on certain key issues. This, he said was necessary to ensure that VAT did not hinder inter-state trade and allowed the country to develop a common uniform market.

CIINR Chairman S K Bijlani pointed out that none of the countries having VAT had lost revenue. An apprehension to this effect was unfounded. He said while there was the possibility of short-term revenue declining, in the long term a VAT regime would make revenue more and not less buyonant. (UNI)

Argentine President IMF deal near, recovery close

BUENOS AIRES, ARGENTINA, Oct 12: Argentine President Eduardo Duhalde said today he expected to reach a vital aid deal with the International Monetary Fund soon that would give a push to a budding recovery from a four-year recession.

Argentina needs an IMF accord to avert a default on billions of dollars in multilateral loans and give the economy breathing room to rebound from its worst-ever crisis. Critically, the Government must make debt payments in the next few weeks but faces a cash crunch.

Talks between Argentine negotiators and IMF officials in Washington progressed enough this week for Argentine Finance Secretary Guillermo Nielsen to head home yesterday saying he had a draft letter of intent in hand.

Such a letter usually signals both sides are close to resolving differences over economic policies that allows for a new lending agreement.

Still, during months of tortuous negotiations there have sometimes been predictions of an imminent deal that have turned out to be wrong. Currently there also remain difficult issues to be hammered out concerning monetary policy and how to resolve a freeze on bank deposits.

"The technical work is practically finished," Duhalde said in a weekly radio address that underlined an upbeat Government sentiment that has emerged this month. "The Government is going to review the draft letter of intent. It will be a reasonable agreement that is positive for Argentina."

Duhalde said Latin America’s No 3 economy was beginning to pull out of a recession that forced the Government to default on most of its public debt and devalue the peso in January.

The caretaker President cited data released in the past week that showed consumer confidence had risen and that the central bank had gained dollar reserves, which are key to helping to stabilize the peso.

But he added only job creation would create real growth.

"What we need to get out of the crisis is to increase production and create jobs," he said, touching on a theme that could be key in elections. Duhalde confirmed elections will go ahead as planned in march and not be brought forward to December as some politicians had proposed. (AGENCIES)

Develop technology to eradicate poverty and employment: Joshi

ALLAHABAD, Oct 12: Union Science and Technology Minister Murli Manohar Joshi today advised technocrats and scientists not to blindly depend on the technology from foreign countries but develop indigenous technology which would eradicate poverty and unemployment and bring about economic self reliance.

Addressing a gathering of students and teachers after inaugurating the United College of Engineering and Research at Naini, about 25 km from here, Dr Joshi said developed countries were not going to give their latest technology but would provide outdated one. "Also, it is not necessary that a technology developed in other countries would meet our requirements."

He said there was no lack of talent and resources in the country. The only need was to awaken the people, especially the youths, about their ability and calibre.

He exhorted the youths to recognise their talents, and old and rich traditions and cultures instead of feeling week and helpless.

"When the other countries of the world had only primary knowledge of science and technology, India was most advanced. We were too ahead in medical science and other fields but unfortunately in the mad race of modernity we forgot it," he said.

Dr Joshi also distributed certificates and cash awards to meritorious students. (UNI)

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