The rupee weakened further by 13 paise to trade at Rs59.70 against the US dollar in early trade on Friday, on unrelenting capital outflows and strong demand of the American currency from importers
Continuing its decline, the rupee weakened further by 13 paise to trade at Rs59.70 against the US dollar in early trade on Friday, on unrelenting capital outflows and strong demand of the American currency from importers.
However, the euro’s gain against the US dollar overseas, capped rupee’s loss.
The Indian unit had yesterday hit an all-time low of 59.93 intraday, before the Reserve Bank of India stepped in to help the local currency recover some ground. It had ended 87 paise down at 59.57 on huge outflows.
Besides gold, silver, crude oil and base metals, processed farm items like sugar, soya oil and guar gum will come under CTT, according to the notification from the finance ministry
Commodities Transaction Tax (CTT) will be levied at 0.01% on various non-agricultural commodities, including gold, sugar and edible oils, with effect from 1st July.
Notifying the CTT today, the finance ministry said 23 agricultural commodities, including wheat, barley, chana, cotton and potato, would be exempted from the levy.
The tax would be levied on futures trading and not on spot trading in the commodities. Besides gold, silver, crude oil and base metals, processed farm items like sugar, soya oil and guar gum will come under CTT. Coriander, cardamom and guar seed is also out of CTT.
In the 2013-14 Budget speech, finance minister P. Chidambaram had said that the commodity transaction tax will be levied on non-farm items at the rate of 0.01% and would be paid by the seller.
According to sources, the implementation of CTT has been delayed as there have been consultations between the stakeholders and the finance ministry over the list of non-agri commodities to be brought under the ambit of CTT.
Exchanges and brokers are of the view that CTT would discourage day traders and speculators, resulting in a big drop in business of five national bourses.
There are 22 commodity bourses in the country, of which six of them operate at national level. The combined turnover of these bourses stood at Rs1,70,46,840 crore in 2012-13, down by 6% from the previous fiscal.
Of the total turnover, more than 80% comes from non-agricultural commodities.
Poor sales and demand for cotton seed in western Vidarbha indicates that farmers could shift from cotton to pulses like tur, chana and even linseed besides soyabean
Large number of traditional cotton growers in the Vidarbha region of Maharashtra may shift to soya this Kharif season as cropping pattern was set to change after the onset of monsoons, according to agriculture experts.
The total cotton sowing area is likely to be reduced by 10 lakh hectares from 40 lakh hectares on one hand and an increase by the same numbers in soya cultivation area may take place, since soya was a cash crop and yield was satisfactory in terms of acreage, they said.
“The shift from cotton could be more than the 10% that was anticipated initially,” said Maharashtra State Cotton Growers’ Co-operative Marketing Federation sources.
“One of the reasons could be the failure of the government to announce the minimum support price (MSP) for cotton. This has fuelled fears that it may not fetch much more than Rs3,900 a quintal it got last year. If a farmer knows before hand the price, it helps him decide which crop to go for.
Cotton growing has become costly and returns are poor,” sources said.
Vidarbha Jan Andolan Samiti president Kishore Tiwari said this year a good beginning in the monsoons has helped farmers to kick start kharif operations on time.
“But cotton, which for many years has been the main cash crop of Vidarbha, may give way to soyabean this year.
Poor sales and demand for cotton seed in western Vidarbha’s Amravati division indicates that farmers could shift from cotton to pulses like tur, chana and even linseed besides soyabean,” Tiwari said.
Confirming a lesser interest for cotton by farmers, a senior government official from Amravati division said that soyabean looks to be the preferred crop this year.
“The picture will be clear in only later this week.
Farmers initially just make rounds to dealers to look around and do not buy anything. They take couple of days before deciding and then finalise on the crop,” he said.
Tiwari and his team are also advising farmers to go in for food crops and pulses to augment income.
“I have noticed that demand for cotton seeds is far less. Some input dealers and companies have started offering discounts,” he said.
Tiwari was however furious over non disbursement of crop loan to farmers.
About four lakh farmers have been provided with crop loan by the District Co-operative Banks in Vidarbha which was a dismal show. In Buldana district, only 7% crop loan was disbursed till last week, he claimed.
In case of default by district co-operative banks, some nationalised banks have disbursed loan but that too is just 10% in Vidarbha of the earmarked amount.