As per the Assocham Business Barometer?s (ABB) Inflation Outlook, released on Thursday, the inflation is projected to fall to 6% in the next four to six weeks as a result of the fiscal, monetary and administrative measures taken by the government and the normal monsoon forecast.
The fiscal steps taken by the government includes abolition of import duty on steel, fresh ad-valorem duty on cement priced above Rs 250 per 50 kg bag. The tariffs have been cut to zero, for rice, wheat, pulses, edible oil and maize. The import duty has been slashed to 7.5% on hydrogenated oils and vegetable oils and to 30% on butter and ghee, and withdrawal of 4% additional countervailing duty on edible oils.
The recent reports of food grain production have also lifted the spirits of the industry. Food grain production in FY07-08 is estimated to have touched a record of 227.32 million tonnes with increased output of rice, wheat, coarse grains, pulses, cotton, oilseeds compared with the previous year. Rice production is estimated to touch 76.78 million tonnes compared to the last year production at 75.81 million tonnes, a 1.3% hike. Coarse grain production registered a 17% jump at 39.67 million tonnes, 5.75 million tonnes higher than the previous year production. Oilseeds production pegged at 28.21 million tonnes compared to 24.29 million tonnes in FY06-07. However, mustard production recorded a decline of 13.6% primarily due to the rough weather.
As per the latest data released by International Copper Study Group , there would be a surplus in copper availability of close to 80,000 tonnes this year and projections for 2009 are still higher at 4.3 lakh tonne.
?PTI
