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Jeera futures fall on profit-booking

NEW DELHI, Feb 20: Jeera prices fell by Rs 140 to Rs 13,290 per quintal in futures trade today as speculators booked profits at existing levels.
Increased supply from the producing regions and decline in the export demand pulled down the prices.
At the National Commodity and Derivatives Exchange, jeera for delivery in March fell by Rs 140, or 1.04 per cent to Rs 13,290 per quintal with an open interest of 9,912 lots.
Likewise, the spice for delivery in April lost Rs 135, or 1.00 per cent to Rs 13,337.50 per quintal in 8,175 lots.
Analysts said profit-booking by speculators on expectations of higher output and supplies of the new crop, mainly influenced the jeera futures prices. (PTI)

Overseas investors bullish on Infra Debt Funds: Chanda Kochhar

NEW DELHI, Feb 20: Indian Infrastructure debt funds are expected to attract huge investor interest in overseas markets, given a marked improvement in economic sentiments here and a low-interest rate environment abroad, ICICI Bank chief Chanda Kochhar has said.
Besides, the evolution of newly-created infrastructure debt funds (IDFs) as key financing vehicles for infrastructure sector is also expected to ease the pressure on banking system, Kochhar told PTI in an interview.
“The improvement in sentiment during the last few months and the continued FII flows in both debt and equity lead us to believe that the IDFs will be successful in raising offshore funds,” said the ICICI Bank Managing Director and CEO, who was here yesterday for the launch of India Infradebt Ltd, the country’s first IDF under NBFC model.
Infradebt has been set up with an equity capital of Rs 300 crore (about USD 55 million) with four major financial institutions as its promoters. While, ICICI group holds the highest 31 per cent stake, other promoters are Bank of Baroda (30 per cent), Citi (29 per cent) and LIC (10 per cent).
The Fund can provide funding to the tune of up to USD 2 billion after roping in debt investors from India and abroad.
On the expected contribution from domestic and foreign investors in the overall targeted size of USD 2 billion, Kochhar said: “Infradebt is looking to raise half the liabilities from the domestic market and the other half from foreign sources”.
Asked whether she was optimistic of foreign investors’ interest in Infradebt and other such funds despite concerns over the country’s widening trade deficit and continuing FDI barriers, Kochhar exuded confidence in success of IDFs in raising offshore funds.
“Further, since the IDF would be lending to projects which have completed one year of operations after the implementation, the risk profile will be substantially lower, thereby attracting huge investor interest in IDF.
“Also, the continued low interest environment in the offshore markets coupled with the ample global liquidity will also support fund raising by IDFs,” she said.
India has set a target of USD one trillion towards infrastructure spending during the 12th five-year plan period (2012-17).
Of this, 50 per cent of the amount is proposed to be invested by the private sector and an estimated USD 350 billion is expected to come through debt contribution.
“While the target (USD 1 trillion) may appear large, we should remember that a few years ago we would have thought that spending USD 500 billion would be impossible and we have substantially achieved that level in the 11th plan period.
“So I think we need to set aspirational targets and work towards achieving them with the right policy and administrative measures,” Kochhar said. (PTI)

Crude palm oil futures up 0.68 pc on rising demand

NEW DELHI, Feb 20: Crude palm oil prices rose by Rs 3.20 to Rs 469.90 per 10 kg in futures trade today as speculators created fresh positions on expectations of a rise in spot market demand.
A firming trend in the overseas markets also influenced the crude palm oil futures prices.
On the Multi Commodity Exchange, crude palm oil for March delivery rose by Rs 3.20, or 0.68 per cent, to Rs 469.90 per kg, with a trading volume of 463 lots.
Similarly, the oil for delivery in February moved up by Rs 2.60, or 0.56 per cent, to Rs 460 per 10 kg, with a business turnover of 399 lots.
Meanwhile, palm oil climbed 0.70 per cent to USD 835 a tonne on the Malaysia Derivatives Exchange. (PTI)

Potato futures fall 0.91 pc on reduced offtake

NEW DELHI, Feb 20: Potato futures prices fell by Rs 7.50 to Rs 816.50 per quintal today as speculators offloaded their positions, driven by weak trend in the spot market.
At the Multi Commodity Exchange, potato for April delivery fell by Rs 7.50, or 0.91 per cent, to Rs 816.50 per quintal, with a business volume of 18 lots.
For delivery in March, potato traded lower by Rs 4.10, or 0.48 per cent, to Rs 838.60 per quintal, with a trade volume of 28 lots.
Marketmen said fall in potato prices was mostly due to offloading of positions by speculators, driven by subdued demand in the spot market.
They said increased supplies in the physical market, following persistent arrivals from producing region further pulled down the prices. (PTI)

Cardamom futures surge 0.81% on spot demand

NEW DELHI, Feb 20: Cardamom prices rose by Rs 8 to Rs 991.80 per kg in futures trade today as speculators created fresh positions, tracking a firm spot market demand.
Less arrivals from producing regions also supported the uptrend in cardamom futures.
At the Multi Commodity Exchange, cardamom for delivery in April rose Rs 8, or 0.81 per cent, to Rs 991.80 per kg, with a business turnover of 153 lots.
Similarly, the spice for delivery in March jumped by Rs 6.60, or 0.69 per cent, to Rs 959 per kg, with trading volume of 822 lots.
Traders said rising demand in the spot market against less arrivals from producing regions mainly led to an upsurge in cardamom futures prices. (PTI)

Nikkei closes at 52-month high, exporters surge; BOJ gov appointment e

TOKYO, Feb 20: Japan’s Nikkei average climbed to a 52-month high on Wednesday as exporters were buoyed by the yen’s recent weakness, but analysts expect the upside could be limited in the short run as investors focus on who will become the next Bank of Japan governor.
The Nikkei rose 0.8 percent to 11,468.28, marking its highest closing level since late September 2008. The benchmark index is up 10 percent since the start of this year, spurred by the yen’s weakness, after rallying 22.9 percent in 2012. Most of the gains last year came in the final six weeks after Prime Minister Shinzo Abe focused his election campaign on lobbying the BOJ to adopt bolder monetary policy.
Toyota Motor Corp rose 1.7 percent after the Nikkei newspaper said the carmaker will ramp up production in Japan in April by about 10 percent on higher-than-expected domestic sales and increased profitability of exports due to a weaker yen. It was the most traded stock by turnover on the main board.
Other exporters were also in demand, with Toshiba Corp adding 1.9 percent and Canon Inc gaining 1.5 percent.
The dollar last still traded at 93.55 yen, but not far from a 33-month high of 94.465 yen set on Feb. 11. The yen has declined some 15 percent against the dollar since November, driven by bold expansionary policies pursued by Abe to reignite the economy.
‘Lawmakers in Japan have made it very clear that they are comfortable with the yen at 90 to 100 (to the dollar). They probably prefer closer to 100 than 90. They would like the equity market to go higher in the fiscal year end (in March),’ a senior trader at a foreign bank said.
Analysts said the Nikkei is likely to trade in a range for the rest of the week while investors carefully await the outcome of Friday’s Washington summit, where Abe meets U.S. President Barack Obama to discuss a range of issues including bilateral, regional and global issues, as well as economic and trade matters.
‘The yen weakness has steadied and the stock market has hit the resistance level of 11,500. Investors will probably take a wait-and-see stance before those key events,’ said Hajime Nakajima, deputy general manager at Iwai Cosmo Securities. ‘Short-term investors may trade on individual news, but we need more promising cues to attract long-term investors to the Japanese market.’
Most investors are also likely to be circumspect about pouring more money into stocks as they focus on whom the government will nominate as the next central bank governor next week, the analysts said.
The government has delayed nominating a governor by a week, fanning talk of friction between the prime minister and the finance minister over who should run the central bank and take aggressive action to revive the economy.
The broader Topix added 1.1 percent to 973.70 in thin trade, with 2.82 billion shares changing hands, compared with last week’s average daily volume of 4.03 billion shares.
Wednesday’s market gains were partly capped by Japan Tobacco Inc ending down 1.0 percent, after falling as much as 5.9 percent as sources told Reuters that the Japanese government’s $10 billion stake in the world’s third-largest tobacco company was expected to kick off within days after bankers met on Tuesday over deal details.
Ebara Corp dived 7.6 percent after the manufacturer of pumps and air blowers said it would raise up to 35.1 billion yen ($375 million) through a public offering of common shares and convertible bond (CB) issuance, stoking fears of dilution.
Hiroichi Nishi, an assistant general manager at SMBC Nikko Securities, said that there were more than 40,000 call option orders at the 11,500 mark as of Tuesday, suggesting that the index faces some resistance from the seller side close to that level.
Japanese equities carry a 12-month forward price-to-earnings ratio of 13.8, a level not seen since March 2011, according to Thomson Reuters Datastream. That compared with a 10-year average of 16.4.
The senior trader at the foreign bank said long-only investors, such as pension funds, remained slow to enter the Japanese market.
‘I don’t think U.S. Long-only funds have really got into this market. They are still underweight. I think it’s hedge funds and regional accounts that have a little bit more flexibility around their asset allocations, so we are seeing those guys in the market,’ the trader said.
(AGENCIES)

Kill it or get killed

Ram Rattan Sharma
Enough is thought, spoken, written and devised on it, but corruption continues to grow at a cumulative rate. Everybody asks a question about this, but no body has the answer. Including the law, the lawmakers, the law breakers and the law seekers. It means the foundation and sources of survival of corruption lie deeper and are simply beyond the pale of mere law making and implementation process. Two hundred years of British rule in India could be regarded as the basis of the spread and mass conversion of people’s mentality in to some thing different, which were thought in terms of career and prospects. The British Govt. engraved into the minds of people that manipulation, divide and rule and policy of suppression cum reconciliation could even convert a powerful sovereign land into a classical colony. The whole regime passed amidst accusations and justifications and India experienced horrible governance during her colonial tenure.
Corruption was not only made widespread both horizontally and vertically by the British but it was made a way of life. The whole British Colonial apparatus was guided towards shielding wrong people, wrong work and wrong policies. It created an atmosphere where anti-nationalists short-sighted, whimsical people could get the benefits and honest and hardworking people could go to backyard of the machinery. Infact, capriciousness was accepted as a talent and straight forwardness and steadfast was forcefully and awfully discouraged.
Gradually in course of time corruption and corrupt practices assimilated into the work culture and encroached the mental faculty of most of the people in India. The British clearly sent a message to most of the younger generation at that time that if they wanted to excel in their lives, they had to compromise with certain dignified proposition and then only they can survive the on slaughts of parochial governance. With this temperament, we got freedom and British left the country. But these two hundred years of alien rule completely transmuted the character of the Indians. The British rule infused a sense of insecurity amongst most of the people about their future and career of their children. Therefore needs are being transformed in to greed. The person not only tries to earn for one self but also for the entire generations to come and this attitude towards work and life forms the genesis of all cronyism. The British Govt. consciously avoided to touch sensitive issues of administration and continued their rule on the basis of touch and go and adhocism. They never tried to find out any solution for long-term problems and through the constitution of various committees and commissions. We are also following the same methods. The British govt. deliberately created crisis and confusion among the communities through the policy of divide and rule. This created a sense of mental suspicion towards each other and laid the foundations of sectarian politics in India. This breeds and sustains corruption. The British govt. ushered all the developments and projects to suit their interests. Even today investments are made on same pattern. In independent India also most of the projects are driven by the interests of a few groups of persons.
The British devised covenanted civil services to serve the British imperialist interests in India by collecting revenues for them with out ensuring any accountability. They were called civil servants but they were basically representatives of their British Masters. The people do not get due justice and service from the officers even now. The administration suffers and corruption breeds. The British Govt. did not touch education, including primary, higher and technical beyond their utility level. In the name of modern education, the British govt. confused the minds of the people. The British govt. showed a very low respect about our traditional system education but never tried to replace it with a more rational and growth oriented system of education. This creates fragmented and dilapediated mind set of both the leaders and voters and breeds uncontrollable spate of political corruption. Manipulating and being manipulated has much acceptance now than it was earlier in our society. The British in a way rationalized and justified it as a way of living. Manipulation is the basis of Western or Euro-centric approach of development let us be realistic. But what can definitely be wished is that those who get manipulated be not protected from the wrath of those in power. The British responded in a favourable manner to blandishment and flattery. It was made to appear as a survival strategy for the Indians. The humblest and determined either give away their work and the manipulative give way to the powerful head. What is supposed to be selfless turns in to self centered. It destroys the strength of our administration and breeds corruption at all levels.
It is unfortunate since this had brought us to a level where we only find ourselves in search of more money, more power and thereby greater respect and influence thus the British made a notable change in the outlook of society. The race for money and power is now unprecedented and it has corrupted the minds of the people. There is need of an institution which is very powerful and that institution is supposed to act as a watch dog for the nation, as the debate is going on for the constitution of powerful Lok Pal, as in the Jan Lok Pal bill, being considered by the civil societies. It asks for such a Lok Pal which brings with in its purview the CVC and the CB.
Considering the history of colonial rule and inability of the last 64 years old rule to break the jinx of corruption, the huge magnitude and proportions of corruption cannot be tackled by mere individual or individuals or for that matter any institution. Infact, we have to realize that the level acceptance of corruption among us has to be rejected thoroughly and in this regard we have to come out collectively by surmounting and obliterating our habits, mind set, temptations, myopic calculations and behavioural pattern, and this is not easy, mind it, accept it and work it to get rid of it.
(The author is former Dy. Librarian University of Jammu and a social activist)

Diversification in agriculture

Dr.Banarsi Lal
Agricultural policies involve the Government, organizations and the farmers. The Government aims in maximization of agricultural outputs on sustainable basis. The agricultural universities and research institutions give policy inputs and the government departments prepare the programmes on the basis of the policies and implement them to achieve the objectives of the government. The farmers seek to maximize their farm income and employment of the family members to increase their income. The state planning policies which are top down in approach decide on macroeconomic basis, assuming that the farmers would adopt them or could be induced to adopt .The general policy of Government for agricultural development can be summarized in terms of (a)supply of inputs like high yielding varieties seeds, fertilizers and insecticides-pesticides at reasonable rates;(b)supply of water, credits and electricity at subsidized rates; and (c)fixing of minimum support price for important food grains and other crops along with procurement system for wheat and rice. The farmers have responded to these policies by allocating higher acreage under wheat and rice crops which have least risk of yield as well as price. The policy of diversification has been loaded with objectives like checking degradation of soil health, sustaining the land productivity, checking decrease in level of water table and water logging, controlling the use of insecticides and pesticides, decreasing the water pollution, maintaining the ecological balance and increasing production of crops. The farmer thinks for the short term benefits. The continuous increase in area under wheat and rice in spite of echoing of the above mentioned considerations clearly proves the fallacy of this policy of diversification.
The support price with procurement arrangement has been revealed as the most important instrumental variables in influencing the acreage allocation decisions of the farmers. This support is becoming unsustainable for the Government due to its financial situation. The support price with procurement arrangement for additional crops is almost ruled out in view of prevailing weak fiscal situations of the Central and State Governments. The acreage planning for individual crops is widely used as a management tool by almost all the developed countries. Acreage planning requires realistic estimates of the acreage under individual crops at national level on the basis of domestic and export demand of the concerned crops. The level of production and acreage can be fixed for different crops at national level so as to fetch a market price reasonably above the cost of production. The cost of production may be targeted so as to compete with the international price of the crop in next 2-3 years. We cannot do away with the responsibility of planning agricultural output in the pretext of liberalization or incompetence of line departments. The million of traders are effectively covered under some or other kind of registration then why not the farmers. We need to try it at least for certain crops. We should choose the path of area planning for further agriculture growth otherwise we shall be heading towards the disastrous situation with present approach of no planning. It may be worthwhile to use area planning as a policy for certain crops like floriculture, vegetables , strawberry, fruits etc. where the number of farmers and area involved is much less. The acreage for the selected crops may be fixed at national level on annual basis and the same may be allocated among the individual states. The state level acreage of each of the selected crop can be allocated among the districts through the concerned Department of Agriculture as per their share in the state. The district officer of the department can further allocate the acreage among the individual farmers on the basis of their last 3 years acreage of the concerned crop. This procedure will take care of the likely state and district level concerns in allocation of planned acreage. This practice may be tough in the beginning but such planning is being effectively implemented as a policy instrument in almost all the developed countries at present. Farmers will be benefitted if they are restricted to one or two selected crops along with the purview of acreage control. For this purpose farmers need to be convinced by taking the specific area plan models of some crops. Such models can be helpful to increase the income of the farmers as well as the agricultural sector as a whole. The existing crop departments need the training and use of information technology.
The policy of acreage planning can serve many purposes such as (a)Farmers will get the specialization of the concerned crop by restricting themselves to the crop on regular basis.(b)Price support will be available to the farmers due to planned production according to the domestic and export market requirement. (c)Specialization in one or two crops will enable the farmers to produce the quality products in terms of taste, colour etc. which will pay them high prices.(d)The long term association of the farmer with a particular crop will help him to think for processing the same.(e)The allocated area will be reliable for providing any type of technical or market support. The supply of inputs and credit facility can really be provided to the farmers. (f)The area planning can help us to avoid the causes of wastage of scarce resources like land, fertilizers, pesticides etc. Any type of intervention after excess production will just transfer the losses from farmers to Government or vice-versa. The area planning can avoid those losses and even save scarce resources .

Need to adopt a pro-active approach

Sarvadaman
The recent spate of cross-border firing on Indian troops manning LoC and other posts in J&K has sent shock waves across the country. Reliable sources referred to about 117 incidents of cease fire violations by Pakistani troops across the LoC. In some cases, the Indian troops were forced to retaliate with utmost restraint. However, the incident that took place at Mendhar area of Poonch District has shocked the conscious of every patriotic and right thinking Indian. The beheading of an Indian jawan and mutilation of another by Pak troops, who had intruded stealthy into the Indian territory, clearly reflects the mindset of Pak. Army and their civilian leadership. It is a hard fact that the ongoing peace process has failed to achieve any tangible results. The peace process has only benefitted Pakistan. But our political leadership is obsessed with carrying on peace process with Pakistan. Over the years, there have been many cultural exchanges, seminar and conferences involving members of civil society and officials from both the countries. So much so that different types of proposals like demilitarization of Siachen Glacier, settling of Sir Creek issue in Gujarat and other allied matters were discussed. The decision of the Indian Government to liberalize Visa System and grant liberty to Pak. nationals above 65 years of age to travel in India freely except in States of J&K, Punjab and Kerla, is fraught with great danger. Normalization of ties with neighbouring countries is a welcome step but it should not be at the cost of security of our country and people.
It is rightly said that nation comes always first. But promoting friendship and nurturing personal relations at the cost of National interests is suicidal for the country. The US and UK Foreign policy is always guided by national interests. Since 1947, despite good efforts from our political establishment to maintain cordial relations with Pakistan have met with failure. Some people in the Indian establishment still believe that peace cannot be achieved through violence, it can only be attained through mutual trust and understanding. But this kind of thinking on the part of Indian leadership has failed to yield anything substantial. The gravity of the two incidents that took place along the LoC in J&K must neither be seen as a localized affair of trivial importance nor should be blown out of proportion as a prelude to a major incidents of tension between two arch rivals in the subcontinent. Despite provocation of grave nature, some sections of Indian leadership, intellectuals and some sections of civil society have said that such incidents do occur every now and then but both sides should not allow the matters to go out of control. These men in the peace industry still advocate a multilevel engagement between India and Pakistan. This section of society is not fully aware of ground situation.
The need of the hour is to pay Pakistan in the same way and to make it realize the cost of such kind of misadventures against India. We have examples of many countries before us. The Israelis have a high level of self respect and they believe in the policy of tit for tat. The adversaries should be made to remain at tenterhooks even if they falsely show repentance. Therefore, time has come that we should reshape our foreign policy and also revise our strategic policy in the light of these gruesome developments by the Pakistani Army. It is quite clear that the brutality on the LoC raises doubts about the credibility of the peace process. India should have a fresh look in this matter. Many persons in the Indian establishment still believe that Pakistan is going to get advantage by drawing international attention towards Kashmir affairs. Some also feel that internal situation in Pakistan is not conducive, some say that a change of guard is around the corner in Pakistan. But what we have to do with such type of changes. We have to do nothing with the internal affairs of Pakistan. Some members of the civil society even went to the extent of saying that by blowing the matter out of proportion, the relations between the two countries would again get jeopardized. They must know that it would not be a one sided affair.
India has granted a number of one sided concessions to Pakistan including most favoured Nation Status. But the result of these one sided concessions are before us. Pakistan has not given any concession to India. The countries are not governed with emotions, but with firm decisions. It is now expected that some kind of change should be made and priorities refixed to guard the National interests. The incident at Mendhar and other similar gruesome acts committed in the past by the Pakistani establishment have inflamed the Indian Public Opinion. It could, of course, achieve mush more if New Delhi would exert pressure on Pakistan at International Level. By doing so, India would be able to contain Pakistan to some extent and would surely be able to isolate Pakistan at the International Level for various acts of overt and covert missions. India should not look at loosing friendship with Pakistan. But the change of policy would definitely yield better results than the previous laid back approach. By adopting proactive approach, Pakistan can be cornered in a better way and peace can be achieved in the long run.

Meeting nature’s fury

Man is acclimatized to the fury of the nature because he is helpless before its might when unleashed by the elements. Earthquakes, tsunami, wild fires, storms, avalanches, hurricanes, cyclone, tornados and tempests are the manifestations of this brute power of nature that claim life too violently and too quickly. Scientists and geologists give us the physical reason for these unpredictable changes. Yet despite all the destruction that these cause, man moves on to be part of the entire process.
We in the State of Jammu and Kashmir are faced with a recurring scenario that haunts us year after year and season after season. The State is located on the western fringes of the Himalayas comprising the Pir Panchal, Salkhala and Shivalak ranges and sub-ranges. According to geologists, these mountain ranges are younger in years and hence not so solid as to withstand the onslaught of elements or wanton intervention by human beings. The road from Jammu to Banihal meanders through kacha mountains that are highly vulnerable to the effect of heavy rains and snow. Particularly during the monsoons and the winter when we have heavy rains and snow alternatively, the entire belt of NH-1 and the arteries like Batote – Doda-Kishtwar road or Udhampur-Reasi road or Rajouri-Poonch road and Batote-Banihal road become highly vulnerable to landslides and slips that disrupt normal vehicular transport. Landslides are a common feature during the rainy season. When the road is blocked thousands of vehicles along the road and passengers get stranded for days at end. It becomes a matter of worry for the government and for the civilian population. More often, people perish in such conditions.
We may not be able to predict the vagaries of nature and the fury of elements when geographical changes are at work, but we need to think seriously whether we are becoming an instrument to aggravate violent physical changes all along the highways and mountainous road links in the State. We are repeatedly told that some interventions could become the cause for loosening of the earth of these young mountains and ridges that could lead to downslide of enormous mass of earth, stones and rocks called landslides. De-foresting and denying the slopes their green cover, absence of drains to save the soil from erosion, blasting of rocks and quarries to obtain constructional material like stones, pebbles, sand etc, tampering with rock formations to make tunnels, bridges or to widen the roads by cutting the earth are all having impact on the mountains through which roads are built. Movement of heavy vehicular traffic causes vibrations that could also be the reason for loosening of the earth. At many places such as from 14- to 135 kilometers of NH-1, the region is more prone to landslides owing to very loose formation of rocks.
The Jammu-Srinagar-Leh Highway is the lifeline of our State. We cannot afford its closure even for one hour. It is the feeder to the requirements of more than a crore of people and the entire economy of the state depends on it. Therefore we need to constantly take care that the link remains intact in all seasons and under all conditions. It calls for some urgent and serious measures. Foremost is that axing of the trees and spoliation of green cover over should be immediately forbidden with very harsh punishment for violation of this rule. Then there should be plantation on scientific basis meaning such trees should be densely planted as have deep roots and grip the soil fast. Trees of special specie will have to be identified and planted on regular basis. The green cover of the soil has to be maintained at any cost and with perfection. Quarries should not be allowed close to the Highway. It is just possible that the Forest Department may need creating a separate range for the National Highway exclusively.
Raising protective and supportive walls and bunds is also important. Border Roads organization is doing excellent job in trying to keep important and strategic road open the year round. But the construction of supporting walls and balustrades has to be undertaken as a major project to be completed over a period of time. It is hoped that the proposed tunnel from Chenani to Nashri now under construction will overcome the problem of landslides. But that should not minimize the importance of keeping the old highway open and in trim for use.