Sunday, January 27, 2019

Government will try to address rural distress

The Indian Union Budget 2019 will be presented on 1st February. If Finance Minister chooses to present a full Budget instead of an interim one, he can well announce some radical reforms without worrying about their popular reception. At the 1st February budget, the sixth by this government and final one before the general elections, is likely to include some tax sops for the middle class and also unveil measures to lessen rural stress. A farm package has been in the works with various options including income transfer, a more liberal minimum support price scheme and interest waivers for crop loans repaid on time. Last year finance minister began after 11 am and it was close to two hour long speech. Budget session 2019 will commence from 31st January and will end on 13th February.

The oil market fell as a widespread economic slowdown, which may dent growth in demand. International Brent crude oil futures closed at $61.64 per barrel, while US West Texas Intermediate crude futures closed at $53.69 per barrel. Oil prices fell as financial markets reeled from concerns about a global economic slowdown. Rising oil output from the United States, together with the effects of the U.S-China trade war were weighing on crude prices. These bearish market factors offset several bullish influences from around the world, including production cuts led by the Organisation of the Petroleum Exporting Countries and declining output from Iran and Venezuela.

The benchmark RSS4 grade rubber closed at `.124.50 a kg at Kottayam, while RSS3 grade closed at `.113.37 a kg at Bangkok and Malaysian SMR20 closed at `.95.59 a kg. On ICEX, February 2019, the futures closed at `.123.94 a kg, March at `.125.83, April at `.128.07, May at `.126.91, June at `.128.17 and July closed at `.129.45 a kg. Tokyo Commodity Exchange January 2019 futures series closed at ¥199.5 a kg, February at ¥199.5, March at ¥189.6, April at ¥186.2, May at ¥184.3 and the contract for delivery in June 2019 closed at ¥182.8 a kg. On Monday, most probably Tocom futures contract for delivery in June 2019 may trade in the range of ¥180 & ¥184 a kg.

To read Rubber4U – 1st February 2019 issue:
For 2018-19 Rubber Forecast:

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