DIABETES IS STILL POORLY CONTROLLED IN INDIA, INTERIM RESULTS OF STUDY OF 1,755 PEOPLE SHOWS

CHENNAI, September 24, 2009 - Diabetes is still poorly controlled in India, according to interim results of an International Diabetes Management Practices Study.

The study showed that patients with type one diabetes were poorly controlled (in terms of HbA1C), a test to find the average blood glucose levels over a period of 2-3 months, and fasting plasma glucose test, one of the reasons being inadequate monitoring and improper management of their conditions, a release said here.

The two-part multinational, multi-centre, observational study, is a five-year survey documenting changes in diabetes practice in developing regions.

Sponsored by a leading global pharmaceutical company Sanofi-Aventis group, the study was carried out in 27 countries in Africa, Asia, Eastern Europe, Middle East and Latin America.

It covered 11,800 persons, including 1,755 Indians. Of these 1,898 were type one diabetes and 9,901 were type two diabetes patients.

The findings reiterated that improvement of education and commitment of both patients and care providers was necessary to achieve a more interactive and effective method of care to these diabetic patients, it said.

WORLD FOOD PRODUCTION HAS TO RISE 70 PERCENT BY 2050 TO FEED 2.3 BILLION ADDITIONAL PEOPLE

The world will have to produce 70% more food by 2050 to feed a projected extra 2.3 billion people and as incomes rise, the United Nations’ Food and Agriculture Organisation said on Wednesday.

Global cereals demand for food and animal feed is expected to rise to 3 billion tonnes by 2050 and more demand may come from the biofuels industry, the FAO said in a statement.

Annual cereals output would have to grow by almost one billion tonnes from about 2.1 billion tonnes at present to meet the projected food and feed demand by 2050, the agency said.

Meat output should increase by more than 200 million tonnes to reach 470 million tonnes in 2050, the Rome-based FAO said.

“FAO is cautiously optimistic about the world’s potential to feed itself by 2050,” said FAO’s assistant director-general Hafez Ghanem. But he added that climate change and biofuels demand would be the main challenges for world agriculture.

The world will need to increase investments in agriculture and also boost investments to improve access to food, “otherwise some 370 million people could still be hungry in 2050, almost 5% of the global population,” the FAO said.

The number of hungry people will pass 1 billion this year, but food aid is at a 20-year low, the UN World Food Programme (WFP) said last week.

The potential to raise crop yields to feed a growing world population seems to be considerable and fears that yields are reaching a plateau “do not seem warranted, except in a very few special instances,” the FAO said.

About 90% of the crop output growth is expected to come partly from higher yields, but arable land will have to expand by around 120 million hectares in developing countries, mainly in sub-Saharan Africa and Latin America, the FAO said.

Arable land in use in developed countries is expected to fall by some 50 million hectares, but that could be changed by the demand for biofuels, the agency said.

Sufficient land resources are still available to feed the future world population, but much of the potential land is suitable for growing only a few crops, not necessarily the crops with highest demand, the FAO said.

Massive investments would be required to bring the land not yet in use into production because much of it suffers from chemical and physical constraints, endemic diseases and lack of infrastructure, it said.

Global fresh water resources are sufficient but they are unevenly distributed with water scarcity reaching alarming levels in an increasing number of areas, particularly in north Africa and south Asia, the agency said.

Water use for irrigated agriculture is projected to grow at a slower pace due to reduced demand and improved water use efficiency, but will still rise by about 11% by 2050.

RICE CROP AFFECTED BY DROUGHT AND PRICES HAVE RISEN, BUT INDIA HAS NO PLANS TO REDUCE 70 PERCENT DUTY ON IMPORTED RICE

New Delhi, Sept 24 (PTI) Amid rice prices going up, the government today said it has no plans to abolish customs duty on rice import for now as there are sufficient stocks of the foodgrain. "I don''t think that stage has come.

We have sufficient stocks in the country," Commerce and Industry Minister Anand Sharma said when asked whether duty elimination on rice import was under consideration of the government. At present, rice import attracts a duty of 70 per cent.

The rise in retail prices of rice about 25 per cent in the last four months has become a concern for the govenment, and it was believed to be considering reducing or eliminating the duty. The empowered Group of Ministers headed by Finance Minister Pranab Mukherjee is understood to have reviewed the foodgrain stock situation in August.

Sharma said as a measure to check prices, the government has not been allowing export of non-basmati rice. When inflation had touched 12 per cent in 2008, the government had scrapped the customs duty on rice but reimposed the same from April this year.

India''s rice production touched record in 2008-09 at 99.15 million tonnes, helping the government achieve an all-time-high procurement of rice at about 33 million tonnes. However, crop prospects this year have been affected by drought in about half the country.

AS PRICES CONTINUE RISING DUE TO LOWER CROP GROWTH, INDIA EXTENDS DUTY-FREE IMPORTS OF WHITE SUGAR UNTIL JUNE 2010

NEW DELHI, September 24, 2009 - The government will extend the deadline for duty free import of white or ready to eat sugar (different from brown sugar) from November 30 this year up to May-June 2010, Food and PDS minister Sharad Pawar said on Thursday.

The move is ostensibly aimed at buttressing the imports contracted upto now by traders and bridging the domestic demand-supply gap, thereby pressuring retail prices downward, however marginally. But sector monitors assert that the move is unlikely to have any major impact on sugar imports.

For one thing, the new crushing season 2009-10 is set to being on October 1. That would mean that domestic white sugar would be priority and that supply would be relatively high at the beginning of the season, disincentivising refined sugar imports. For another, much more raw sugar imports have been contracted to date compared to white sugar, solely on accoutn of better economics for domestic sugar millers.

Import prices for both have been a major deterrent but white sugar imports more so. Given India s big demand, the futures price of raw sugar shot up to a 28.5 year high in the world market already facing a sugar output shortfall, a good chunk of which comprises India's deficit.

The opening international futures price for March delivery as on July 27 was $19.48 per pound but that went up to $23.70/ pound in the August 27 opening transaction. Compared to raws, however, whites were too pricey for big imports. Between 13 August upto September 4 this year, for instance, APEDA has registered improt contracts for white sugar amounting to only 5.03 lakh tonnes.

Of the total import contracts for white sugar, contracts by PSUs were for 2.22 lakh tonnes, against which actual imports by them upto September 8 were only 1.09 lakh tonnes.

But white sugar prices too kept pace after India indicated it s thirst for ready-to-eat sugar imports, shooting up markedly over the last several weeks. International prices of sugar, infact, have increased $308/tonne one year ago early September to $533/tonne by September 2 this year.

International futures prices of sugar have also increased for December 2009 from $465/tonne as on July 8 this year to $586/topnne as on September 4, 2009. From around $400/tonne last year, white sugar futures price (London) for December is currently around $585/tonne, a good $185/tonne higher.

The economics of importing white sugar, even at zero duty, is still highly adverse to mills, one sugar industry official from UP pointed out, adding In either case, all the domestic mills will begin crushing indigenous sugarcane to make white sugar at far more viable economics and it then makes little sense for us to import phenomenally priced white sugar.

Against the foreseen sugarcane shortfall in the country, several Maharashra cooperative sugar mills, on the other hand, recently announced their intention to process imported raw sugar for other mills and take payment in processed white sugar. According to the government s own assessments, the ex-factory price (including excise duty) of imported (and processed into white) raw sugar is Rs 32244.48 per tonne.

The retail price per tonne in end August worked out to Rs 34544.48/tonne Inclusive of wholesaler's margin, retailer's margin etc, a difference of Rs 2300-odd/tonne. Compare that with the import parity price of imported Brazil whites in the same period: it cost Rs 33511.73 to the wholesaler per tonne including importer s margin of Rs 500/tonne compared to a retail price of 35811.73 per tonne, relatively much higher than for imported and processed raws.

In a recent note, a Committee of Secretaries noted Retail prices have increased by 19% over three months and by 45% over one year. Over this period, wholesale prices have increased by 23% amd 55% respectively. Sugar today retails at around Rs 32-35/kg on the back of an estimated eight million tonne production shortfall in the 2008-09 sugar year (upto end September) compared to an annual consumption of 23 million tonnes.

Thanks to that, sugar prices have shot up by around 45% in the retail in the last year. Production in the 2008-09 sugar year is pegged by industry at 14.5 million tonnes only against 26 m tonnes in the 2007-08 year, a sharp 40% drop in output.

INDIA, CHINA AND RUSSIA TO BUY GOLD FROM IMF TO REDUCE THEIR POSITIONS IN U.S. DOLLAR SECURITIES (DEBT)

BIZ INDIA Editor's Note: The rapidly-growing U.S. government debt is now almost $12 trillion. It is likely to soon surpass the $14 trillion the U.S.Gross Domestic Product of 2008. The U.S. Congress also passed the $2 trillion deficit spending 2009-2010 government budget that President Obama presented.

And if the pending U.S. healthcare bill, which projects a cost of about $1 trillion through government subsidies, is passed, the U.S. debt is likely to climb higher and faster than at anytime in U.S. history.

All these large expenses while the U.S. is in the longest recession (22 months, since December 2007) since the Great Depression of the 1930s have prompted India, China and Russia to take precautions by reducinb its load of U.S. Treasury securities: debt in the form of U.S. treasury bills, bonds and notes.
--------------------------

----------------
WASHINGTON D.C., September 21, 2009 - Almost 20 years after it was forced to pawn its gold reserves to keep defaulting on its international debt, India is now looking to buy some IMF gold.

The International Monetary Fund has approved the sale of a limited amount of its gold to shore up its finances. India, along with China and Russia, have indicated interest in such purchases as a way of reducing their position in dollar-denominated securities.

The purchase of the gold will also help these countries to increase their role in IMF operations as they have often complained the IMF is dominated by the United States, its largest shareholder, and European nations.

The fund’s executive board said it decided to sell “a volume strictly limited to 403.3 metric tons”, 1/8th of its holdings in a way that does not disrupt the sale of gold in commodity markets, which already were expecting and discounted the IMF decision.

The IMF, a 186-nation Washington-based lending organisation, is the third largest official holder of gold in the world with 3,217 metric tons, after the United States and Germany.

The board said the IMF could sell its gold directly to its members’ central banks if any were interested or it could put the gold on the open market in phases.

If the gold is sold on the open market, the IMF said it would inform these markets before any sale begins and report regularly to the public on the progress of gold sales.

The IMF said it also would coordinate its sales with major central banks, which agreed last month on ceilings of gold sales amounting to 400 tonne annually and 2,000 tonne in total over five years.

The sale of the gold was authorised by the G-20 countries at their summit in London in April as part of efforts to provide up to $6 billion in easy-term loans to low-income countries.

The IMF decision comes in advance of next week’s G-20 summit in Pittsburgh, which will review IMF lending, and the fund’s annual meeting early next month in Istanbul, Turkey.

The G-20 countries decided at their April summit in London to approve the gold sales as part of efforts to provide up to $6 billion in concessional loans to low-income countries.

In recent years, some countries with thriving economies managed to pay off their IMF loans ahead of time, reducing income the IMF derived from loan interest and putting a strain on its finances.

INDIA'S $21 BILLION GEMS, JEWELRY EXPORT SECTOR HOPING FOR MORE U.S. PURCHASES, WITH XMAS APPROACHING

NEW DELHI, September 21, 2009 - Gems and jewelry exporters are pinning hopes on the recovery in the western markets ahead of Christmas, after witnessing a sharp decline in their shipments for the last eleven months in a row.

The Indian jewelry exports market has already started showing signs of improvement as the pace of decline in July-August was much lower than a sharp fall witnessed in the beginning of this fiscal year.

Jewelry exports are likely to improve from January onwards as there are signs of recovery in western markets, A Sakthivel, president of Federation of Indian Exports Organization, said.

The decline in the precious jewelry exports shrank from the steeping 34 and 24 per cent in April and May, respectively to 2-8 per cent in July and August, bringing relief to exporters ahead of Christmas.

These exports stood at $1.76 billion in August 2009 compared to $1.92 billion in a year ago.

Exports of cut and polished diamonds showed a drop of 24 per cent and colored gemstones 15 per cent, while gold jewelry reversed the trend showing a growth of 40 per cent.

Though, the negative trend continues because of the slump in the world jewelry market, the situation seems to be reversing.

"We are getting good number of orders for the Christmas season," Mehul Choksi, chairman and managing director of jewelry exporting firm Gitanjali said.

The US, UAE and Hong Kong are the major markets for Indian jewelry exports which totaled at $21.11 billion last fiscal.

GOV'T ASKS AIR INDIA BIG EXPENSE CUTS, PRIOR OKAYING $1 BILLION BAILOUT. ITS PILOTS MAKE $8000 VS. JET AIRWAYS' $4000 A MONTH

With Air India seeking a Rs 5,000-crore (about $1 billion)bailout package from the government, Finance Minister Pranab Mukherjee today reviewed the turnaround plan of the national carrier, including the steps it was taking to cut costs and improve savings.

Mukherjee was briefed on the issue by Civil Aviation Secretary M Madhavan Nambiar and Air India CMD Arvind Jadhav at a meeting in his North Block office, official sources said.

The finance minister is understood to have made it clear that any government assistance to the national carrier would come only after it took concrete measures to reduce flab and costs. He reiterated the position that the airline should take more initiatives to cut costs and enhance savings.

In this context, it was also pointed out that, on an average, a pilot of Jet Airways earned about Rs 2 lakh a month, whereas their Air India counterparts got between Rs 3 lakh and 4 lakh (about $6,00 to $8000) which included the productivity-linked incentives, informed sources said.

The meeting came as the civil aviation ministry started work on preparing a note for the Cabinet on a package for Air India, including infusion of additional equity and a soft loan to overcome its present crisis.

The Air India board is expected to meet on Wednesday, following which Jadhav is likely to address employees on the urgent need to tighten their belts.

KINGFISHER AIRLINES SEEKS TO PARE ITS $1.2 BILLION DEBT BY $400 MILLION AND TRADE IT FOR EQUITY

NEW DELHI, September 23, 2009 - Kingfisher Airlines Ltd, the Indian carrier owned by the nation’s largest brewer, may raise as much as $175 million selling shares and global depository receipts to repay debt.

The carrier may seek between $80 million and $100 million in a rights offer and a further $60 million to $75 million selling Global Depository Receipts (GDRs), Ravi Nedungadi, chief financial officer of the airline’s parent UB Group, told the UTV television channel. The money may be raised within six months, he said in an interview.

Kingfisher Airlines has Rs 60,00 crore ($1.2 billion) of debt, almost a third of it coming from payments made to purchase new aircraft, Nedungadi said today. Unprofitable Kingfisher, Jet Airways (India) Ltd., the nation’s largest domestic carrier, and other airlines are all seeking to sell new shares to pare debt and interest payments amid losses from a slump in travel demand.

Kingfisher earlier this year delayed taking delivery of Airbus SAS A380 aircraft to 2014 from 2012 after scrapping three orders with the Toulouse, France-based planemaker last year. The airline’s passenger numbers fell for a third consecutive month in August, according to government data.

Kingfisher will bring in a strategic partner if government rules permit, Nedungadi said. The company hasn’t pursued expressions of interest made by foreign airlines as Indian government rules don’t permit overseas carriers from buying stakes in local airlines, Nedungadi said.

“We are waiting for a change in regulations,” he said. Kingfisher fell 0.3 per cent to Rs 52 as on 12:11 p.m. in Mumbai trading. The shares have gained 28 per cent this year.

Jet Airways said earlier this month it plans to sell shares to institutional investors as part of its $400 million fund-raising to cut debt and raise working capital.

INDIA'S COTTON FARMERS BEAT U.S., DOUBLING THEIR CROP TO 21.8 MILLION BALES, AND ARE NOW NO.2 TO CHINA

NEW DELHI, September 21 2009 - You have to give it to India’s farmers.

They have used American seed technology to beat the United States at cotton production. In just four years since 2002, when genetically modified Bt cotton was introduced in India by the US multinational, Monsanto Holdings, production more than doubled to 21.80 million bales, while the US output increased from 17.20 million to 21.58 million bales.

Today, India at 25 million bales is second only to China with 36.5 million bales, and second again, at 5 million bales to US exports of 13.52 million bales.

Rarely has the arrival of a technology created so much heat. Almost every activist and many non-governmental organisations were up in their arms to protest against the so-called invasion of the genetically modified seeds.

Bt cotton’s imminent demise in India was foretold. But, away from the headlines and the slogans, farmers all over the country have adopted Bt cotton happily, to raise yields and prosperity. At present, 80 per cent of the cotton produced in the country is from the new varieties.

WITH DOLLAR CHEAPER AGAINST RUPEE, GOLD PURCHASES UP, AHEAD OF DIWALI SEASON, EVEN AT $1,000 AN OUNCE

MUMBAI, september 23, 2009 - India gold traders continued to trickle in on Wednesday as the rupee strengthened, making the dollar-quoted asset cheaper, to build up stocks in the middle of the festival season, dealers said.

"The rupee has appreciated so it is making gold cheaper for traders. They are just buying bare minimum for festivals," said a dealer with a state-run bank in Mumbai. "I sold around 250 kgs since yesterday evening."

"Volumes are expected to pick up due to festive demand," said another dealer with a private bank.

The most-traded October contract was up 0.30 per cent at 15,864 rupees per 10 grams at 1:53 pm.

The Indian rupee hit a six-week high in early deals on Wednesday as dollar demand from importers and weaker domestic shares offset the weakness in the dollar overseas.

Dealers said the underlying demand is still strong, with many traders staying on the sidelines to replenish stocks.

"I have plenty of orders in the range of $990-1,000 (an ounce)," said another dealer with a private bank.

India, the world's largest consumer of the yellow metal, is in the midst of the festival season, with Dussera on Monday and Diwali and Dhanteras next month, which is expected to revive sagging gold sales.

The World Gold Council's January to June figures show India's gold imports fell 55 percent to 126.7 tonnes from 282.3 tonnes a year earlier.