Inflation falls marginally
New Delhi: The annual wholesale price index-based inflation rose 4.52 per cent during the week ended July 15, which was marginally lower than last week's annual rise of 4.68 per cent. The lower year-on-year inflation rate was largely due to fall in prices of manufactured products, Government data said on Friday.

The index for manufactured products, which have highest 63.75 per cent weight in total WPI, declined 0.1 per cent to 176.7 points.

However, the wholesale price index (WPI) for all commodities ended the latest reported week at 203.7 points against 194.9 points in the same period a year ago. Inflation was at 4.45 per cent during the corresponding week last year.

The Primary Articles' group index rose 0.3 per cent to 202.7 points as prices moved up for food, non-food articles and minerals. The index for fuel, power, light and lubricants remained unchanged at its previous week's level of 326.3 points.
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Govt security roadblock may hit FDI
New Delhi: The government is planning a legislation that would empower it to stop foreign investments on security grounds on the lines of a US law.

This was decided in a meeting held on July 26, presided by the chairman of the joint intelligence committee and attended by officials from the Intelligence Bureau, department of economic affairs, department of industrial promotion and policy, department of shipping, ministry of external affairs, and department of telecommunications.

As of now, there is no legislation in India that bars foreign investment for security reasons. In future, all tenders floated by PSU companies will have enabling clauses by which the government could intervene and disqualify a company for security reasons. Moreover, the decision to incorporate a clause in all the tenders allowing the government to disqualify a company on security reasons will enable PSUs to ban procurement from such companies. All government licences will have a clause that will enable it to cancel licences in case of security reasons.
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FM says no problem with cut in petro duty
New Delhi: Finance minister P Chidambaram addressing the parliament said the finance ministry had an open mind on lowering excise duties on petrol but said the resultant reduction in revenue will make it more difficult to finance the government's ambitious social sector programmes.

The fiscal burden would rise further, he indicated, thanks to food subsidy which has been going up.

He put the onus on state governments for not doing enough to curb rising prices of foodgrains and black-marketing. He said states can invoke the Essential Commodities Act, after taking due sanction from the Centre. He said many commodities have been taken off the ECA list.

He sought to assuage the feelings expressed by the members of the House saying prices would be brought under control. He said the Centre was acutely conscious of its responsibilities to moderate prices and no sense of alarm should be spread. However, he faced a walk-out by the entire Opposition, led by the BJP as well as Left parties, the SP and coalition partner RJD.
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Farmers unhappy with MSP
Mumbai: Farmers across the country are unhappy over the government decision to retain minimum support price (MSP) for some commodities while effecting a minor raise in others for the kharif season 2006-07.

MSPs for maize, moong and urad, groundnut-in-shell, soybean black, sunflower seed and niger seed have been left unchanged while those for cotton (both medium and long staple length), paddy (common and grade A), soybean yellow, sesame and tur (arhar) have been increased by Rs10 a quintal.

For hybrid jowar, bajra and ragi, MSPs have been raised by Rs15 a quintal.

Farmers say they were expecting MSP to go up this year in line with the spot market. But the government did not raise it up to the extent they were expecting. They say they expect that the government agencies would not be able to procure anything this year.

Last year, a majority of farmers preferred not to sell their kharif output to the government-appointed nodal agencies on expectations of higher realisations they would get from private buyers. The government has confirmed a 40 per cent slump in its targeted level of wheat procurement this year, and this is a pointer to the issue of not raising MSP sufficiently.
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Govt launches online facility for importers, exporters
New Delhi: The government has started an online facility for issuing Importer-Exporter Code Number which is the first export related registration that an exporter is required to obtain. The new system relies on a much simpler form and an optional on-line application module for issuance of IEC Number. It seeks only essential details from the applicant and has an optional facility of advance on-line submission of application, it said.
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