New Delhi, June 11
The fertiliser crisis that has boiled over in Karnataka is just a tip of the iceberg and the worse of these shortages is yet to come as the sowing season starts in Punjab, Haryana, Madhya Pradesh etc soon. As the monsoon season starts, the shortage of fertilisers is going to be felt in major rice-producing regions of North and South India, leading to a shortfall in production of rice and later in wheat leading to a spiralling of food prices in the coming months, industry sources say. The reason of shortage of fertilisers in the coming season and in the next season (wheat season) is mainly due to bad management on the part of government of key issues like payment of timely subsidies to fertiliser companies, long-pending decision on distribution and freight policy, say industry sources.

The government has not yet made payment of subsidies for the past year to the fertiliser companies, making them cash-strapped and unable to produce the required quantity for the coming season. According to the sources, the crisis has just begun and a quick and proactive policy is the need of the hour.

Outstanding dues of fertiliser companies remain an issue at large as there are differences between the finance ministry and the Department of Fertiliser over the methodology of calculating subsidies and cost of manufacturing fertilisers.

The differences are so sharp that it will take a lot of time to reconcile the differences. This lack of decision making has led to government not notifying the policy and prices for phosphorous and pottasium, even as consumption of these products has begun, say industry source.

The mismanagement is not only at the home front. The government has not been able to forecast the international prices of key fertilisers and ingredients and make policy amends to deal with the new volatile situation. India consumes 48 million tonnes of fertilizers, of which 14 mt are imported.

There is every possibility that the companies will cut down on production because they do not have adequate finances and bank limits are drying up.

Ludhiana, June 11
A large number of petroleum dealers across the state did not lift oil supplies today expressing their unhappiness with the oil distributing companies for allegedly forcing them to sell premium fuel and for "arbitrarily" halting oil supplies the day fuel price hike was announced.

The dealers said they would observe "black Wednesday" every week at least till the end of this month in order to communicate their resentment over the "unfair" move of the oil companies.

A large number of dealers also alleged that the oil companies cut down their supplies on Tuesday in a bid to hamper the protest by creating scarcity.

However, officials of oil companies maintained that supplies were normal on Tuesday and also today.

"It was totally unfair on part of the oil companies to stop supplies on the day the government announced hike in fuel rates. Even after the increase, they have been forcing us to sell at least 40 per cent premium fuel of the total sales. As oil companies were aware of our decision in advance, they tried to curtail our protest move by restricting supplies yesterday," said J.P. Khanna, president of Punjab Petroleum Dealers Association.

Dealers said the new condition of selling at least 40 per cent premium fuel, which is more expensive variant, had been verbally communicated to them by the oil companies. "We have clearly told them that we would not be able to force any customers to buy premium category of petrol or diesel and the sale of this variety depends totally on customer demand," said Ashok Sachdeva, general secretary of Ludhiana Petroleum Dealers Association.

Dealers also said that the demand for premium fuel was much lower in comparison to normal variety of petrol and diesel and it would not be possible for them to accept the "recent condition".

The dealers took the decision to mark their protest last week when they were asked by oil companies to focus on the sale of premium fuel.

Post announcement of fuel rate hike by the government, oil distributing companies have effected another Re 1 increase in case of premium fuels, thereby widening the price gap between normal and premium varieties.

The dealers in the state also demanded an increase in commission on premium products from the existing Rs 1,200 per kcal to Rs 1,400.

New Delhi, June 11
The scramble for natural resources like oil are going to be the power play in the coming times. This concern and forecast were made by Prime Minister Manmohan Singh today.

"The world is not able to grapple with the crises that it faces... The demand is increasing faster than ever before and the quest for access to the oil resources is going to become another major factor of power play in the world," he said addressing the IFS probationers here.

Singh said the Chinese have been going around the world in Africa, in Latin America, investing, exploring and developing the natural resources for increased oil production.

"This tension will increase in the years to come. So the quest for sensitive natural resources, oil security, energy security will emerge as a major source of interplay of forces in the evolving world economy," the Prime Minister said.

Singh said India has to recognise that there would be increasing competition from China and those who were well entrenched in the energy sector.

New Delhi, June 11
After Maruti Suzuki India Limited (MSIL) claiming to be the fastest to cross the 2-lakh mark with its Swift hatchback, Hyundai Motor today said it has crossed the one lakh units mark in export of its latest hatchback 'i10' within seven months of first shipment.

"Since the time, the 'i10' made its European debut in Bologna, Italy, in December, 2007, the total export orders have reached the remarkable figure of 1,06,749 units from as many as 98 countries," it said.

"We are extremely delighted as we reach the fastest one lakh unit export mark for the 'i10'. We always believed that the 'i10' is a world class car and can compete with all other global compact cars on even footing," HMIL managing director H.S. Lheem said.

The demand in the domestic market was also very strong with sales of over 65,000 units and to meet the expectations of both markets, the company was trying hard to produce as many numbers of 'i10' as possible, he added.

The company is also planning to launch a new model of 'i10', powered by a 1.2 litre all aluminium engine, within the next two months. The new engine, under the code name 'Kappa', is being developed at the company's Chennai facility. 

Mumbai, June 11
Consumer, home, auto and other loans could become costlier with the Reserve Bank today hiking its short-term lending rate to banks by 0.25 per cent to 8 per cent in the face of surging inflation.

Announcing the increase from 7.75 per cent, the central bank said the decision was taken with a view to contain inflationary expectations as the rate of rise in prices touched a 45-month high of 8.24 per cent.

The inflation, analysts said, is expected to climb over nine per cent once hike in petroleum prices gets reflected in the official wholesale price index.

The move to increase repo rate, at which the central bank gives short term money to banks in exchange of government securities, has been taken for first time this fiscal.

It had earlier been trying to contain inflation by raising cash reserve ratio — the mandatory deposits that banks keep with RBI.

Commenting on RBI decision Punjab National Bank Chairman K C Chakrabarty said, "All interest rates would be affected.

We will take decision by month end. It (the move) will increase the cost of resources." Country's largest lender SBI said it would examine lending and deposit rates on Friday.

Real estate company Unitech said home loan rates may rise after the Reserve Bank's step.

The reverse repo rate, at which RBI borrows money from banks in exchange of the government papers, however, remained intact at six per cent.

HDFC Bank chief economist Abheek Barua said," This (repo rate hike) will have an implication on the bank's lending rates. I think the Prime Lending Rates of the banks will go up by about 50 basis points. There would also be a revision of bank's deposit rates." — PTI

New Delhi, June 11
Emboldened by the overwhelming success of the first mini Pravasi Bharatiya Diwas (PBD), the government plans to hold the second mini PBD in Singapore on October 10-11, with a focus primarily on business.

The event will be organised by the overseas Indian affairs (OIA) ministry in coordination with the Singapore Indian Chamber of Commerce and Industry, secretary in the ministry K Mohandas told The Tribune here today.

Besides delegates from Singapore, the meet would be attended by PIOs and NRIs from South East and East Asian countries. The first mini PBD was held in New York in September last year. It was attended by NRIs from North and South American Continents.

Asked about the progress made by his ministry in setting up the first PIO University, Mohandas said the university, to be established in Bangalore, would be run by the Manipal Academy of Higher Education. It was possible that studies in some of the streams would start by the next academic year and a majority of the courses would begin by 2010. The university would have 50 per cent seats earmarked for NRIs/PIOs and the remaining 50 per cent for Indian students.

There had been suggestions from setting up PIO universities in other parts of the country but no decision had been taken in the matter, he added.

On whether India proposed to sign labour protection agreements with some more countries, Mohandas noted that such accords were in place with the UAE, Kuwait and Qatar. Negotiations had been completed with Bahrain and Malaysia for such accords and these would be signed at mutually convenient dates.

He confirmed that Poland had shown interest in inviting Indian labour for undertaking construction activities in the country last year. In the meantime, there was a change in government in Poland. "Now they have informed us that they are looking into the matter.''

Mumbai, June 11
Indian buyers of gold, who traditionally influenced the prices of the yellow metal, have been pushed to the sidelines as international speculators fleeing from a weak dollar seek refuge in the yellow metal.

Demand for gold from Indian buyers has been declining ever since last Diwali when prices ruled slightly below Rs 11,000 per 10 grams. But the price of the yellow metal has been rising relentlessly and touched Rs 13,500 per 10 grams before retreating over the past couple of months. According to analysts, gold prices will rule at around Rs 11,800 till around Diwali.

Among the reasons given for the bearish sentiment in gold is the stock market crash between January and March this year, which wiped out scores of speculators. "Members of the Gujarati-Marwadi community who buy gold in large numbers round the year have reduced purchases since the stock market crash," says Dhiren Jhaveri, a gold trader at Mumbai's Zaveri Bazaar, the country's biggest hub for the precious metal.

Though the months preceding Diwali are considered to be a slack season, jewellers have never seen empty stores like they are doing now. "Demand has been slack since Diwali when gold prices ruled around Rs 10,000 per tola, but since then the number of buyers have fallen sharply," says Jhaveri.

The impact of Indians tightening their purse strings is telling on the country's gold imports. According to the Bombay Bullion Association, Indian gold imports fell 59 per cent year-on-year for the month of May. "Imports amounted to between 28 tonnes to 32 tonnes as compared to 69 tonnes last year," says Suresh Hundia, president of the Bombay Bullion Association.

According to the World Gold Council, India is the biggest consumer of gold accounting for 800 tonnes of the yellow metal every year or 20 per cent of global consumption.The official figures, however,belie the fact a big chunk of the gold sold in the souks of Dubai are purchased by Indians with unaccounted money and is brought back to the country via unofficial channels or stashed abroad.

But with the Indian stock markets tanking there seem to be fewer buyers in Dubai as well.

Meanwhile in India, the jewellery business is waiting for the festival season to start. "We expect demand to go up during the festival season when traditionally Indians buy gold in large quantities," says Jhaveri.

Chandigarh, June 11
Reliance Jewels, the gems and jewellery arm of Mukesh Ambani-owned Reliance Retail, is all set to enter the Punjab market by opening its store in Ludhiana later this week.

Reliance Retail has entered the jewellery retail line in November 2007, and has already opened two showrooms — at Bangalore and Hyderabad. Company officials said considering the huge potential in Punjab, they have decided to open the third Reliance Jewels outlet in the country at Ludhiana. Over the next three years, the group plans to open outlets in all major cities of the state.

Officials said Reliance Retail plans to open 300 Reliance Jewels outlets across the country during the next three years. The company is also open to appointing franchisees for this format and one third of the planned 300 stores could be added as franchisees. The company is looking at existing jewellers and those experienced in retailing, to be appointed as franchisees.

Though the soaring gold prices have hit the jewellery business hard, the organised retail jewellery chains have seen an upswing in sales. The jewellery market in India is worth Rs 80,000 crore, with only 3 per cent of this being in the organised sector. “Thus there is a huge growth potential in jewellery retail, as more and more people opt for branded jewellery because of an assured purity of metal and carat weight of gems,” said the spokesman, adding that all gold jewellery at its outlets are BIS hallmarked, while every diamond carries certification by an international certification laboratory.

Each Reliance Jewels store offers 10,000 designs of exquisitely crafted jewellery from across the country to make it a one-stop shopping destination for fine jewellery, offering consumers a wide range in gold and diamond jewellery. The gold jewellery range comprises filigree, Rajkot minakari jewellery, Kundan from Jaipur, temple jewellery from Kerala and jadau from Amritsar. In diamond jewellery, Reliance Jewels offers the finest quality of diamonds and the widest range of designs, ranging from daily wear to party wear and diamonds for weddings. 

BRIEFLY

Rediff.com offers stock barometer
New Delhi: The ongoing cold waves in the equity market notwithstanding, a US-listed Indian Internet firm has registered a copyright in its name for an analogue designed to show how "hot" is a stock. This feature, named "How hot is this stock" of Nasdaq-listed Indian online firm Rediff.com enables the users to reach a quick and snapshot conclusion about how a stock or mutual fund is fairing. — PTI

McDonald's plan
Kolkata: With an aim to clock 30-35 per growth per annum, the US fast-food chain McDonald's plans to open around 60 more restaurants across the country annually and pump in Rs 400 crore in the next three years. "India has a huge market potential for McDonald's," Connaught Plaza Restaurants managing director Vikram Bakshi told reporters while inaugurating an outlet here. McDonald's has 160 restaurants in India.— PTI

Mirrus opens India R&D centre
Bangalore: A CBay Group company Mirrus Systems on Wednesday announced the inauguration of its first India R&D centre here with an initial investment of $1.5 million and also plans to ramp up its headcount to 1,000 by 2010. The new centre would focus on development and maintenance of Mirrus Systems technology platform for its patient financial services offerings, a company release said.— PTI

NIIT Q4 net down 11 pc
New Delhi: Software company NIIT Technologies on Wednesday posted an 11 per cent decline in net profit to Rs 31 crore for the fourth quarter ending March 2008 over the same period a year ago due to a notional loss of Rs 6.7 crore on account of exchange rate volatility. — PTI

Gammon’s overseas buyouts
New Delhi: Construction major Gammon India Ltd on Wednesday said its overseas subsidiaries have acquired stakes in two Italian firms. The company has acquired 50 per cent stake in power sector services firm Sadelmi Spa, and 75 per cent stake in Franco Tosi Meccanica Spa, a company engaged in manufacturing steam turbine for thermal and hydro-electric plants, the company said in a statement. — UNI