Connect with us

Business

High gold prices hurt demand on Dhanteras

Published

on

gold jewellery

New Delhi, Nov 5: In line with expectations, the sale of gold this Dhanteras across metro cities was subdued owing to high prices of the precious metal.

Gold prices are currently around the highest levels in the last few years. In Delhi, gold was priced around Rs 32,600 per 10 gram on Monday.

Dhanteras is considered an auspicious occasion for buying gold.

“In Delhi, demand on Dhanteras fell around 40 per cent from last year as gold prices are highest in the last three-four years,” said an employee with Nihalsons Jewellers, based in the capital.

Another employee with Haryana Jewellers in Delhi said: “You can see crowds in the shops, but most of them do not end up buying.”

In the country’s financial capital — Mumbai — too traders said sales were down 40 per cent on year-on-year basis.

“Though there are crowds, people are not buying as per the expectations, but merely making token purchases of 5-10-20 gm to mark the auspicious day. Mostly gold coins/ or guineas are moving while small, medium or big articles of jewellery are virtually ignored,” said Mumbai Jewellers Federation President Rakesh Shetty.

Similarly, demand for the yellow metal in Kolkata during the day was down 10 per cent as prices were around 7 per cent higher than last year, India Bullion and Jewellers Association’s West Bengal President Pankaj Parekh told IANS.

“Dhanteras was expected to bring the much needed rejuvenation in the market but this year jewellery sales have not yet picked up so far,” he said.

According to Parekh, the depreciation in rupee and rise of international gold prices by around 3-4 per cent in the last two months have pushed the domestic prices of the metal to Rs 32,700 (including GST) per 10 gm during this year’s Dhanteras from Rs 30,500 last year.

Somasundaram P.R., the World Gold Council’s Managing Director for India, said organised players in the market seem “better placed” in comparison to the unorganised participants due to “transparency measures” including the use of digital wallets.

“Anecdotal feedback from industry suggests that though footfalls seems to be good, demand could be moderate,” he said. The recent sharp increase in prices could weigh on the consumer wallet though, limiting purchases during this season, he said.

However, there were some voices of positivity, too.

The All India Gem & Jewellery Domestic Council (GJC) said contrary to the expectations, gold and jewellery sales have zoomed during Dhanteras and the positive trend is expected to continue till the upcoming winter wedding season.

“The past three days have surprised even the industry. People are literally out in droves in shops and showrooms to make gold purchases. For two months, till last Saturday, the market situation was extremely gloomy,” said GJC President Nitin Khandelwal.

“Our expectation is that USD may touch around Rs 85 in the near future, given the current international scenario. Along with that, gold itself would shoot up to Rs 45,000 per tola (10 gm). Plus, the upcoming winter marriage season is also driving up the sales,” Khandelwal told IANS.

Jewellers have now set their eyes for the wedding season starting this month which is likely to firm up demand for gold for jewellery. The marriage season generally starts in November and lasts till March.

Blog

RSS affliates warn against farm loan waiver in interim budget

Published

on

Farmers Protest

New Delhi, Jan 21 (IANS) Four BJP governments in states had rolled out farm loan waiver schemes but RSS affiliates have strongly warned against these in the interim budget, saying such a move would only worsen the agrarian crisis and put further pressure on the banks.

This comes in the midst of speculation that the Narendra Modi government may be showering sops on farmers in its interim budget before the Lok Sabha polls.

Instead, the sangh parivar affliates want a social security net and various forms of assistance for the farmers.

With agrarian distress expected to be a major plank for the opposition and the Congress promise of farm loan waiver that helped it majorly in its victory in the Hindi heartland state, there are indications that the Modi government may walk a similar path making the February 1 exercise more significant than a vote on account.

Buoyed by the Congress coming to power in Rajasthan, Madhya Pradesh and Chhattisgarh, party President Rahul Gandhi has flayed Modi for waiving corporate loans while ignoring the plight of farmers. He has even asserted that an “united opposition will not let Modi sleep” until and unless farmers’ loans across the country were waived.

While the Congress’ farm loan waiver attracted much ridicule from Prime Minister Modi, it was he who had triggered the trend of waiving farm loans when ahead of Uttar Pradesh elections he had announced relief for the farmers in February, 2017. Subsequently the Yogi Adityanath-led BJP government announced a loan waiver package for around 86 lakh small and marginal farmers.

The BJP governments in Maharashtra and Rajasthan in 2018 had announced waiver of loans taken by small and marginal farmers.

Soon after the Congress executing its pre-poll promise of loan waiver in the three Hindi heartland states, the BJP regime in Jharkhand in December last followed suit, giving farmers financial assistance of Rs 5,000 per acre for the kharif season.

However, the Bharatiya Kisan Sangh (BKS), a sangh parivar affliate, asserts that the Modi government should desist from indulging in populist measures. Its has warned about pitfalls of farm loan waivers.

“The last thing the government should do is resort to farm loan waivers. Rather than being a solution, loan waiver would further deepen the miseries of our farmers. Indeed farmers are in distress and the way the opposition parties for their electoral sake, have raised the issue, the government may deem it to be a political compulsion. But it would be a mistake if it does so,” BKS organisational secretary Dinesh Kulkarni told IANS.

Explaining the opposition to the “short-cut” of loan waiver, Kulkarni said such a move only encourages the practice of defaulting on loans contending that only a handful of farmers benefit.

“The Congress governments in Rajasthan, Madhya Pradesh and Chhattisgarh have waived farm loans but has it solved the crisis of the farmers. The only thing that it did is pressuring the banks and making them wary of giving further loans to the farmers,” Kulkarni said.

He said that unless there was holistic mechanism to ensure that farmers get the right price for their produce and middlemen are eliminated, the vicious circle of debt will continue.

“Loan waiver may halt the vicious debt circle for a short period of time but it won’t bring them out of that. Without a mechanism to make agriculture profitable or even allowing the farmers to recover their cost of production, they will be back to being debt ridden from the next season,” said Kulkarni adding that the government must sit with peasant bodies and other stakeholders to chalk out long term plans to resolve the agrarian distress.

Talking about its expectations from the budget, the RSS’ labour wing the Bharatiya Mazdoor Sangh (BMS) said the focus should be on expanding the social security net to the unorganised sector including agriculture workers and also advocated against farm loan waiver.

While admitting that the government may be inclined towards presenting a populist budget, BMS President C.K. Saji Narayanan said farmers should be incentivised to procure seeds , fertilisers and equipments rather than waiving their loans.

“Our farmers are in distress and indeed need lot of assistance from the government but loan waiver should be the last thing. Waiver as a short term measure is acceptable but then it has its long term effects on the economy which the government should guard against.

“The need is put up a mechanism to ensure that farmers gets right price of their produce. They should be given subsidy to purchase seeds, fertilisers and equipments instead of loan waiver,” Narayanan said.

A critic of the Modi government’s labour and economic policies, Narayanan said the budget should focus on giving relief to the middle class and urorganised sector workers.

“This government for most part of its tenure, has functioned like Congress-led UPA. But in the last year or so there has been substantial change in its attitude. However, with elections on the horizon, it may indulge in populist measures. But that doesn’t mean it should go for loan waivers.

Narayanan said the government in the budget should look to providing relief to the middle class and the workers in the unorganised sector.

“Our major demand is that the income tax exemption limit should be raised to Rs 10 lakh besides that we hope that government will no more neglect our workers especially contract labourers. In addition to hiking contract labour’s wages, unorganised sector has to be brought under social security net including agricultural labours,” he added.

While Prime Minister Modi and his government have been touting GDP growth as FDI inflow as its major achoevemnets, the Swadeshi Jagaran Manch (SJM), the economic wing of the RSS said, job-less growth was meaningless.

“GDP growth or FDI inflow should not be the parameters for development, what matters is how much employment is generated.

“As regards the agrarian crisis, the question is why our farmers are debt ridden, and answer to that question can never be loan waiver,” SJM National Co-Convener Ashwani Mahajan said.

He held the “historic neglect” of the agriculture sector by successive governments to be the core issue.

“Besides their persistent failure to even recover their cost of production, the steady rise of prices of farm inputs and farm equipments being under GST, has further pauperised the farmers,” he said.

He said instead of giving the farmers “alms” in form of loan waiver, the need was concrete policies aimed at reforming and reviving the farm sector and making it economically viable and profitable.

“There are large numbers of seasonal agricultural labourers who are rendered jobless for a large part of the year. The focus should be on rehabilitating them as also come with policies to make agriculture profitable.

Mahajan recommended giving major focus on food processing, oil seeds protection, change in crop production, subsidizing farm inputs.

“The one thing that must be immediately done is to exempt farm equipments from GST. We sincerely hope the government will use this budget to lay out long term plans to revitalize the economy and resolve the agrarian crisis instead of falling trap to electoral populism,” added Mahajan.

(Anurag Dey can be contacted at [email protected])

Continue Reading

Business

Sensex ends 190 points higher

Published

on

SENSEX-

Mumbai, Jan 21: Amid healthy third quarter earnings, Sensex and Nifty ended on a firm note on Monday tracking similar trend in the global markets over easing trade tensions between the US and China.

Asian markets were upbeat although China reported a slowdown in its GDP growth rate.

China’s economy grew 6.6 per cent in 2018, the weakest annual performance since 1990, confirming a slowdown in the world’s second largest economy that could threaten global growth, according to official data on Monday. China’s growth was 6.8 per cent in 2017.

Energy, IT and oil and gas sectors gained while the key finance stocks ended lower.

The BSE Sensex closed higher by 192.35 points, or 0.53 per cent at 36,578.96 points, after touching a high of 36,701.03 and a low of 36,351.77 points.

The benchmark index opened higher on Monday, at 36,467.12 points, from its previous close of 36,386.61.

The broader Nifty50 also ended up by 54.90 points or 0.50 per cent at 10,961.85.

Stock-wise, Reliance Industries gained over 4 per cent on Sensex after it reported a healthy third quarter earnings last week.

It was followed by Kotak Mahindra Bank which reported a 22.57 per cent increase in its standalone net profit during the October-December quarter, following which, its shares gained 2.42 per cent.

Other top gainers were Sun Pharma, Bajaj Finance and Infosys.

In contrast, Hero MotoCorp and Yes Bank lost over 3 per cent while Maruti Suzuki, Power Grid and Bajaj Auto declined up to 2.07 per cent.

IANS

Continue Reading

Business

Jaitley to be back to present Budget on Feb 1

Published

on

Arun Jaitley

New Delhi, Jan 21: Finance Minister Arun Jaitley, who is in the US for a medical check up, will return home on Friday, well ahead of the Budget presentation on February 1, official sources said.

“The Finance Minister is set to return on the evening of January 25,” said a senior official. “The interim budget will be presented by him for sure,” he said. He added that the process for printing of Budget documents began on Monday.

Jaitley, 66, left for the US on January 13 for what was believed to be a medical check-up relating to his kidney ailment. He had undergone a renal transplant surgery in May 2018.

However, there has been wide speculation that he may not be able to return early to present the interim budget, which will be his last before the general elections this year.

Jaitley had recently hinted that it may not be a simple interim budget or vote on account, which is generally the tradition in an election year. The full budget is presented by the new government after the elections.

“Ordinarily, there should be no reason why we should move away from that convention but there is a larger interest of the economy that always dictate what goes into that interim budget,” he said on Thursday.

Informed sources said that the government may roll out schemes to help increase farmers’ income, reduce farm input costs and raise credit flow to farmers.

Ministers of State for Finance Pon Radhakrishnan and Shiv Pratap Shukla on Monday held the annual pre-budget ritual, Halwa Ceremony, to mark the beginning of printing of Budget documents in the North Block, the seat of Ministry of Finance.

IANS

Continue Reading
Advertisement

Most Popular