India, the world's second-biggest producer of wheat, is expected to harvest a record 84.27 million tonne of wheat this year. China, with more than 100 million tonne of output, is the largest wheat producing country in the world
New Delhi: The International Grains Council (IGC) has lowered its global wheat production forecast for 2011-12 to 667 million tonne as crop prospects in countries like the US are not bright due to unfavourable weather, reports PTI.
Earlier, in April, the London-based organisation had pegged global wheat output at 672 million tonne this year. The wheat production forecast for the current year is still higher than the 649 million tonne output last year.
"The outlook for 2011-12 wheat crop has been affected by unfavourable weather in a number of countries, especially in the EU and US, and the forecast of global production is therefore reduced by 5 million tonne to 667 million tonne," the IGC said in its latest Grains Report.
Global wheat demand is expected to touch a new record of 669 million tonne this year, it said.
"Use (of wheat) for ethanol is growing less quickly than expected, including in the EU, while greater use of alternative feeds, including barley, is expected to cut the feeding of wheat in Russia," the report said.
Global wheat trade is still forecast to expand by five million tonne, mainly in North Africa, Near East Asia and the EU, it noted.
India, the world's second-biggest producer of wheat, is expected to harvest a record 84.27 million tonne of wheat this year, according to government data. China, with more than 100 million tonne of output, is the largest wheat producing country in the world.
With respect to global maize production, the global body said that increased planting and higher yields are expected to result in a record output of 848 million tonne in 2011-12, as against 812 million tonne last year.
Larger crops in some countries, including the EU and Indonesia, are expected to limit global maize trade to 92.5 million tonne, down by 1.5% from the previous year, it said.
After Rs1,365 crore of outflows in April 2011, mutual funds have recorded Rs1,480 crore of inflows in May 2011—almost 94% of this amount was from existing schemes
Indian equity funds have recorded a surprisingly robust performance in May.
This huge positive inflow belies the mood prevailing among investors and the marketplace. The Sensex has fallen by 11% (since January to June 2011) and Foreign Institutional Investors (FIIs) have not been investing much in India.
One of the reasons for the net inflows in the last month may be because mutual fund houses are leaving no stone unturned to keep distributors in good humour. Asset Management Companies (AMCs) are paying a higher upfront fee to distribution subsidiaries of foreign and private banks nowadays to drive 'exclusive sales' of their schemes, mainly equity schemes. This commission is in addition to the upfront and annual trail fees that mutual funds pay distributors for selling their schemes.
AMCs are paying large distributors anywhere between Rs50 lakh and Rs2 crore this year as part of the so-called "marketing support" fees. Last year, such payout was in the range of Rs45 lakh to Rs75 lakh. Fund houses said that distributors, who have been deprived of the entry load after its ban since August 2009, are demanding a higher fee, citing difficulty in selling equity schemes in unfavourable market conditions. The marketing support fee would depend on the size of the fund house and performance of the equity scheme. Fund houses with large asset bases, performing funds and good credentials will have to pay less. New and ailing fund houses will be required to pay higher fees.
Ever since the Securities and Exchange Board of India (SEBI) imposed a ban on entry loads, equity funds have suffered redemptions. We mentioned in our article dated 6 May 2011 (Huge mutual fund outflow points to a much deeper malaise) that the regulator needs to address the issue of distributor fees, to make AMCs adopt a better pricing system where the commissions are clear and no other payments to distributors allowed. For such a course correction, SEBI and the mutual fund industry, through the Association of Mutual Funds in India (AMFI), have to sit together. So far, AMFI has done a poor job of putting across the industry's views, which is one of the main reasons why SEBI took the decision without consulting it.
The decline has mainly been on account of poor performance of the manufacturing and mining sectors. Manufacturing, which constitutes about 80% of the index weight, nosedived to 4.4% in April while mining grew by a meagre 2.1% during the month under review
New Delhi: Finance minister Pranab Mukherjee today described the decline in industrial growth rate in April as 'disturbing' and said he would wait for more data to ascertain the trend, reports PTI.
"The IIP (Index of Industrial Production) growth figures are disturbing. (We) need to wait for longer-term IIP growth to see the trend," he told reporters here.
IIP as per the new series (base year 2004-05) declined to 6.3% in April from 13.1% in the corresponding period last year. As per the old series (base year 1993-94), industrial output registered a steeper fall in April to 4.4% from 16.6% a year ago.
The decline has mainly been on account of poor performance of the manufacturing and mining sectors.
The growth in manufacturing, which constitutes about 80% of the index weight, nosedived to 4.4% in April from a high of 18% in the same month last year, as per the old series.
Mining grew by a meagre 2.1% during the month under review as against 12% in April 2010.
Similar trends were noticed in the new data series, which revealed decline in manufacturing sector during the month to 6.9% from 14.4% and mining sector output to 2.2% from 9.2% in the year ago period.