Annual inflation dips to 5.23 percent
New Delhi—The annual inflation rate dipped by 0.21 percentage points to 5.23 per cent in the week ended June 16.
The inflation rate fell during the week ended June 16 on account of a 0.1 per cent decline in the price of manufactured products although primary articles were costlier by 0.5 per cent and fuel prices remained unchanged.
Primary articles group index rose to 170.6 during the week from 169.7 in the previous week and 165 a year ago.
The index for food articles was up by 0.8 per cent at 177.4 points due to costlier urad and eggs (5 per cent each), fruits and vegetables (4 per cent), tea (2 per cent), ragi and masur (1 per cent each).
Maize was, however, cheaper by 3 per cent, condiments and spices (2 per cent) and fish-marine (1 per cent).
The index for non-food articles declined by 0.2 per cent to 157.7 due to a 5 per cent fall in rubber prices and 1 per cent dip in each of groundnut seed, copra, gingelly seed, hides raw and tobacco.
Prices of cotton yarn hanks, woollen yarn and hessian cloth moved up by 1 per cent each.
Cement prices fell by 1 per cent pulling down the index for non-metallic mineral products group by 0.4 per cent to 144.3.
Machinery and machine tools group index fell by 0.3 per cent to 127 points due to cheaper computer and computer based systems (13 per cent), electric generators, batteries and ceiling fans (1 per cent each).
The prices of B&W TV sets went up by 2 per cent, while that of electric motors phase one by 1 per cent.
The index for transport equipment and parts also fell by 0.3 per cent to 146.2 due to cheaper motor cycles and scooters (2 per cent each) and car chassis essembled (1 per cent).
Auto-rickshaws were costlier by 7 per cent and mopeds by 1 per cent.
Chemicals and chemical products group index was down by 0.1 per cent to 168 points on account of a 12 per cent fall in liquid nitrogen prices.
The index for food products rose by 0.2 per cent to 143.8 due to costlier sunflower oil (6 per cent), gur (2 per cent), ghee, maida, sooji (rawa), atta, hydrogenated vanaspati, gingelly oil and rice bran oil (1 per cent each).
Coconut oil was cheaper by 3 per cent, groundnut oil (2 per cent), solvent extracted groundnut oil, rape and mustard oil (1 per cent each).
The index for paper and paper products group rose by 0.1 per cent to 175.2 due to 0.1 per cent hike in the price of newspaper.
Basic metals, alloys and metals products group index was also up by 0.1 per cent to 141 due to a 4 per cent hike in the price of steel ingots (plain carbon).
Back to News Review index page  

Ficci wants WTO safeguards to be extended to agriculture in developing countries
New Delhi—The Federation of Indian Chambers of Commerce and Industry (Ficci) on Sunday wants the Indian government to press for extending provision of special safeguards available under the WTO agreements on agriculture to all developing countries.
There was a need for such special safeguards to be accessible to developing countries, irrespective of amount of tariff in the event of a surge in the imports or a decline in prices as India was not in a position to claim exemption under BoP clause, Ficci said.
Use of special safeguards rose during 1995 to 1999, mostly on products of export interest to developing countries, including dairy items, animal products, sugar, tea, coffee, beverages and spices.
Back to News Review index page  

Fathima Beevi recalled, AP Governor takes charge
New Delhi--Tamil Nadu Governor Fathima Beevi resigned from her post Sunday even as the Union cabinet decided to replace her following the arrest of former Chief Minister M Karunanidhi and two Union ministers, Murasoli Maran and TR Baalu.
Andhra Pradesh Governor C Rangarajan has been asked to take additional charge of Tamil Nadu for the moment. The government will announce a governor for Tamil Nadu soon.
The mood in the Cabinet was that President’s Rule should be imposed in Tamil Nadu following yesterday’s developments. However, this option was put aside after the Governor’s report was read out.
In a three-page report, Beevi reportedly said that Maran and Baalu were arrested as they had obstructed police officials in discharging their duties when they went to arrest Karunanidhi at his Chennai residence just after midnight on charges of corruption in the '12 flyovers' scam.
The central government’s charges against her are that she failed to send in a report immediately of the developments in Tamil Nadu and there was "a clear defiance of the authority of the central government by the state government," that manifest itself when she ordered the state police to arrest DMK leader and former chief minister M Karunanidhi and union ministers Murasoli Maran and T R Baalu too were later ‘manhandled’ and arrested.
The government is keeping its options of imposing President's rule under Article 356 of the Constitution.
Senior government sources say that governor Fathima Beevi’s report sent in around the Sunday 9 am deadline set Saturday evening by the Centre, did not objectively reflect the situation in Tamil Nadu and merely repeated the state government's view, rather than making an independent assessment for the centre. Several portions were in fact verbatim reproductions of the report sent by state chief secretary to the union home secretary, sources say.
Further the report was silent on many aspects, like the ‘constitutional impropriety’ of the police going to a union minister Murasoli Maran's home when he was not involved in the case.
Back to News Review index page