Drought impact: Feed prices skyrocketing

Poultry feed prices jumped as much as 69% in July from a month ago. Is this an early indicator of the potential impact a drought could have on food prices in India?  

Feed prices in India are skyrocketing and the price increase is outpacing those during the 2009 drought, according to Nomura, a global stockbroking company. “Average prices of poultry feed—consisting of oilseed cakes, rice bran, grounded maize and soya—rose by 69% year-on-year (y-o-y) in July up from 18% in June, because of the lack of rainfall and higher global prices. These price increases outpace those during the 2009 drought,” it said in a research note.
Nomura said rising feed prices are an early indicator of the potential impact that the deficient monsoons could have on food prices. 
According to Nomura, feed is a key input in poultry farming and this sharp price increase suggests that prices of eggs and chicken (protein food items) may rise sharply in the coming months. “If farmers choose to substitute poultry feed with cereals then prices for cereals could rise as well,” it added.
“As delayed monsoons hurt production of vegetables, cereal and oilseeds, we expect wholesale price index (WPI) food (primary and manufactured) inflation, which is currently 9% y-o-y, to rise into double digits in the coming months. This will keep both WPI and consumer price index (CPI) inflation elevated above the central bank’s comfort zone,” Nomura added. 


Bank of Baroda Q1 net profit up 10% to Rs1,136 crore

The Bank' interest income rose 29% to Rs8,557 crore, while total revenues increased 28.3% to Rs9,328 crore during the first quarter

Mumbai: State-run lender, Bank of Baroda on Monday reported a rise of 10.3% in net profit at Rs1,138 crore for the quarter ended June 2012 as compared to Rs1,032 crore in the same period last year, reports PTI.
Its total reveneus, including interest income rose 28.3% to Rs9,328 crore for the quarter ended June 2012 from Rs7,272 crore in the year ago period.
Interest earned during the June quarter increased to Rs8,557 crore as compared to Rs6,631 crore for the quarter ended June 2011, representing an increase of 29.0%.
The bank's net NPA jumped 80.1% to Rs1,844 crore during the first quarter as against Rs1,024 crore for the quarter ended June 2011.
Net NPA of the bank was at 0.65% as on June 2012 as compared to 0.44% as on June 2011.
Bank of Baroda's Capital Adequacy Ratio (CAR) is at 13.7% as on June 2012 as compared to 13.1% a year ago.


United India CPIO defies CIC order, gives irrelevant data to RTI petitioner

While CIC’s directive to United India to put the date of the policy renewal and the date of policy dispatch to the TPA for every policy is welcome, it has not disclosed everything

The sweet victory for Dr Anshu Agrawal was that Central Information Commission (CIC) took the liberty of looking at the issue in the larger public interest of the insurance policyholders and not just confined to the United India Insurance Company's (UIIC) Bareilly office. The CIC recommended to the chairman and managing director of United India to give directions to all branch managers to put up on the company's website the following information by 16 August 2012: Mediclaim policy number (no names are required to be given), policy date of issue, date of transfer of the said policy to the TPA (Third Party Administrator).

While the option to give past data is left with UIIC, it is unlikely they will give historical data. Giving the information for present and future policy purchases and renewals will mean that the UIIC will have to improve its processes to really live up to its own answer of 'immediately' sending of policy data to the TPA.

One year ago Dr Agrawal had filed a Right to Information (RTI) application seeking UIIC answers. The answer to the question on how many days it takes for a health policy to be dispatched by UIIC to TPA was unbelievably-'immediately'. Obviously, UIIC Chief Public Information Officer (CPIO) did not want to give any specific number of days, which would have been an embarrassment for them. Dr Agrawal was obviously not satisfied with the term 'immediately' which did not give specific answer.

UIIC was blatant enough to agree in the RTI reply that cashless and reimbursement claim will be denied if the TPA does not have policy renewal data. If it takes two to three months for the policy purchase or renewal data to reach the TPA and/or TPA does not update his system, why should the insured pay the price of cashless or reimbursement claim denial? It is a shame if insured is paying for inexplicable inefficiencies of the insurer and/or the TPA.

On the question of data for mediclaim issue date and policy dispatch date for mediclaim policies purchased or renewed by the Bareilly branch office, UIIC CPIO refused to divulge the data in the RTI answer by stating that the information is under fiduciary relationship and is not in larger public interest.

Finally, in the second appeal, the CIC directed UIIC to give information on the total number of mediclaim policies issued by the Bareilly office that were dispatched to the TPA after one week of the date of issue. Even after a specific directive from the CIC, UIIC CPIO has dared to defy it by giving irrelevant data of 297 mediclaim policies issued by the Bareilly office in 2010-11, out of which 293 policies have been sent to the TPA. Can the UIIC CPIO not read that CIC judgement that data on policies that were dispatched to the TPA after one week of the date of issue should be disclosed?

Stay tuned for the third part of the article which you will be interested to know of a little known 'behind the scenes' dealing between UIIC and TPA.

Read first part of the article CIC asks United India Insurance to disclose information that may help close a loophole - I


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