Friday, February 7, 2014

GDP growth pegged at 4.9% & NR moves up


Last year, Finance Minister P. Chidambaram had projected an estimated GDP growth of 6.1-6.7% for 2013-14 in his annual budget, but lately lowered the estimates to around 5%. Today, the government pegged the economic growth rate for 2013-14 at 4.9% against 4.5% in 2012-13. The growth is projected to be marginally lower than the finance ministry's estimated growth.

The three Southeast Asian natural rubber producers are considering joint action to support prices, as tyre grades dip to five year low on worries about a slowing economy in China. They are examining whether to curb exports; reduce tapping or buy rubber from farmers. Indonesia has already urged its farmers to reduce tapping. Thailand and Malaysia could opt for export and output cuts. The representatives from Indonesia, Thailand and Malaysia are meeting this month to work out a deal.

The benchmark RSS4 grade rubber closed at `.144 a kg at Kottayam, while RSS3 grade closed at `.130.98 a kg at Bangkok and Malaysian SMR20 closed at `.116.35 a kg. On Tokyo Commodity Exchange, February 2014 futures series closed at ¥217.8 a kg, March at ¥218.2, April at ¥218.8, May at ¥220.3, June at ¥221.9 and the contract for delivery in July 2014 closed at ¥222.2 a kg. While on National Multi Commodity Exchange, February 2014 futures closed at `.144.43 a kg, March at `.146.69, April at `.149.05, May at `.151.64 and June at `.153.23 a kg.


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