Companies & Sectors
Passenger vehicle sales in May up for first time in 15 months

With excise duty cuts providing some succour, auto sales in May rose 13.2% to 16.98 lakh units, says SIAM

Domestic passenger car sales grew 3.08% to 1.49 lakh units in May compared with 1.44 lakh units in same month last year.


According to the data released by the Society of Indian Automobile Manufacturers (SIAM), except for passenger carriers in medium and heavy commercial vehicles (M&HCVs) and good carriers in light commercial vehicles (LCVs) categories, all other segments witnessed growth during May 2014.


"With excise duty cuts providing some succour to auto industry, there are early signs of improvement in HCV sales. Even passenger vehicle sales are up for the first time in more than 15 months," SIAM said in a statement.


According to the industry body, total sale of vehicles across categories registered a growth of 13.22% to 16.98 lakh units in May compared with 15 lakh units in May 2013.


Two-wheeler registered 16.3% higher sales to 14.03 lakh units from 12.06 lakh units same period previous year. Scooter sale continued to lead the industry in May with a jump of 34.5% in sales to 3.58 lakh units from 2.66 units, while motorcycle sales grew 11.71% to 9.84 lakh units from 8.81 lakh units, same month last year.


Total sales of commercial vehicles were down 15.28% to 46,986 units from 55,458 units in May 2013, SIAM said.


Here are the details on vehicle production, sales and export in May...


Monsoon and its perils: How to rescue farmers

As the situation stands today, 60% to 70% of India may experience below normal monsoon. The  government agencies, for the time being, need to prepare themselves to come to the rescue of farmers, should the monsoon fail

According to the Indian Meterological Department (IMD), the Monsoon did arrive almost on time, with Kerala and Tamil Nadu in the South and some parts of North East India experiencing rainfall of varying intensities. However, due to the risk of El Nino weather conditions, meaning scanty rainfall, agriculturists are depressed. But in some places, in Karnataka, for instance, some monsoon rains have already caused damage to standing sugar cane.


As the situation stands today, 60% to 70% of India may experience below normal Monsoons. Only the weather Gods can change the situation as it develops.


It may be remembered that two-thirds of Indian population live in rural areas and below target production of food grains, due to inadequate rains, is likely to upset the national plan to provide food security to 67% of the population. As it is, the Food Security Act guarantees the supply

of 5kgs of cereals per person, per month, at a cost which is well below the actual cost of cultivation. The cost of procurement, transportation, storing, and distribution alone is estimated to cost over Rs20 for a kg of rice or wheat. As against this, under the FSA these will be made available at

Rs3/2 per kg, respectively.


After all, why should the farmer toil the whole day in bad climatic conditions and produce the food grains, supply to procurement agency and then buy it back from the Public Distribution System (PDS) at a throw-away-price? If they can get it so cheap, why should he till the land? Let the "other guy" do the job!


FSA is not a practical solution to India's problems of food supply. In fact, in the long run, it would make every farmer lazy. Besides, the tragedy is that majority of the farmers are classified as "subsistence farmers" because they produce only enough to meet their own needs. They have no incentives to produce more, and being uneducated, they do not realise that such an attitude by one and all would lead to a catastrophic situation. This may affect India adversely and food imports may become a necessary evil. We must remember that anything given "free" loses its charm and importance!


Radha Mohan Singh, as Minister for Agriculture, has a very important role to play and take stock of the situation relating to procurement of essential food grains by the Food Corporation of India and other authorized Government/State Agencies.


In the case of a number of food grains, like wheat, rice, maize, and other agricultural products, India has already made a name and established overseas markets. There are also delays in marketing activities for exports.


It may be a good idea to get to the root of the problem by revisiting how the Food Corporation of India functions. As it stands now, paddy procured at MSP is passed on to millers, who store it, and then make available "rice" when needed by FCI, according to a well known grain expert Tejinder Narang. In one sense, the Government, knowingly or unknowingly, finances the entire operation! This brings into question the entire supply and procurement chain for 'milled rice'.


It has been reported in the press, that in some parts of Karnataka, farmers have piles of paddy, covered with plastic sheets as millers and others were not "buying" them. The farmer spends around Rs25,000 per acre, and with adequate rains (or water supply by other means) is able to produce 3,000kgs of paddy, the price of which has fallen from Rs1,300 in January to Rs900 in May. In case of leased land, the farmer is forced to give away 20 bags to the landowner. A well to do farmer can rent a storage accommodation at Rs2 per bag per month and then sell when the market is in his favour. Such difficulties can be overcome if both, government storage and milling facilities, are made available at centres of production. Radha Mohan Singh may investigate this matter further.


FCI and other godowns are in shambles and do not have proper facilities to store the food grains, most of which is stored outside under tarpaulin, plastic sheets and so on. Lot of damage occurs as a result, and we appear to be feeding trillions of rodents from these godowns.


Agricultural Minister Singh would probably consider a committee that would coordinate with the ministry for irrigation, fertiliser supply, railways and corporate bodies, so that a national policy for procurement and conservation of food grains in an acceptable manner is established. He may go further in asking State governments to make available land for building warehousing facilities, attached to which may be milling factories, so that paddy procured is immediately converted into rice. Better still, would be for the state government of paddy producing states to set up milling centres where this processing is done routinely, instead of the current procedure; in which, as Tejinder Narang rightly points out, government finances the whole process and the intermediaries make the buck!


The buck must stop here. And government agencies for the time being, should prepare themselves to come to the rescue of farmers, should the monsoon fail and we have El Nino effect in some parts of the country.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



Yerram Raju Behara

3 years ago

It is the millers who gang up and make the politicians play into their hands. Second, MSP of CACP is faulty as has been made out by M.S. Swaminathan Committee. This has to be revised. Third, when other crops have MSP for the basic produce it is only paddy that has two MSPs - one for Paddy and the other for Rice. Stop announcing MSP for Rice and the matter would settle down. Fourth, scrap the APMC Act 2005 and allow farmers to sell the produce wherever they get a better price. Let the government remove all restrictions of movement of farm produce of all varieties. Fifth, to protect the consumer price, let the Government make the PDS more effective than now. Sixth, to protect the producer, let the Government introduce Farm Market Stabilisation Fund.

Sanjeev B

3 years ago

A top-down one size fits all solution will not work. Food processing and storage are more efficient in some parts of the country than others. There are private warehouses too that do this well as a business.

Study how they are doing it, and implement best practices wherever possible. Make the decisions at the warehouse location level. Set standards for storage, wastage, days stored, humidity, temperature. Compare across warehouse locations on a weekly basis. Run this operation as a company would run it, and we will surely see an improvement.

Gujarat University partners with eSF Labs for cyber security research, academics

Gujarat Forensic Science University signed an agreement with Hyderabad-based eSF Labs, to conduct research programmes in cyber security

Gujarat Forensic Science University (GFSU), a university established by the Government of Gujarat said it signed a memorandum of understanding with Hyderabad-based eSF Labs for joint research and academics in cyber security and digital forensics.


Dr JM Vyas, director general of GFSU and FSL Gujarat said, “The mutual exchange of ideas between university and private sector will lead to develop a force of highly specialized professionals in the field of cyber security who can serve our nation in the area of cyber defense."


Considering the dearth of cyber security expertise to protect national critical infrastructure and classified information from future cyber attacks, GFSU has launched an M Tech course in Cyber Security & Incident Response. To impart a professional edge to the academics, GFSU has signed a MoU with eSF LABS, which has high tech cyber defense technology knowledge to combat cyber crime.


On 25 August 2009, Narendra Modi, the then chief minister of Gujarat inaugurated GFSU, a super speciality university dealing in digital forensics and cyber security education. GFSU is India’s first and only exclusive forensics sciences university offering a wide range of courses in forensics which are at par with international standards.


“For the first year of operation, we are starting the M Tech in Cyber Security & Incident Response course with a limited 50 seats to give emphasis on quality and will encourage working professionals from corporate and government sector to join this course. 20th June will be the last date to accept application forms. In the next phase,we will focus on PhD programs leading to core research in the areas of cyber security, digital forensics, incident response and information assurance,” said Dr MS Dahiya, director, IFS, GFSU.



suman chakraborty

3 years ago

This is what is followed in US. Top university and Corporate R&D works hand in hand. May this be a new dawn in India.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)