I News India - Empowering Ideas!

Top US and Brazilian agricultural officials have blamed the trade restrictions as the major force behind the soaring world food prices.

“Export restrictions in India, Vietnam and Argentina, among the world’s top producers of Rice, Soya and Wheat are reducing world food supply and inflating prices around the globe,” said Mark Keenum, Undersecretary for Farm and Foreign Agriculture Services at the US Department of Agriculture.

India and Vietnam have restricted most rice exports, while Argentina has banned wheat and beef exports and imposed heavy export taxes on soy.

After a meeting with agricultural officials in Brasilia, Keenan told that these restrictions have inhibited the capacity of its producers to maximize their income pushing up food prices far more than demand for biofuel.

Increased production of sugarcane-based ethanol has not reduced Brazilian bean, soy and corn output, as experts predicted, Brazilian International agribusiness secretary Celio Porto agreed.

Brazil is the world’s largest ethanol exporter, and last year signed accords with the US to boost biofuel production and draft international quality standards that would allow ethanol to be traded as a commodity, as oil is.

Keenum urged nations to cut farm subsidies and tariffs to boost world food production by giving smaller countries access to larger markets. This will help reduce food crisis.

Tags: Argentina, Biofuel, Brazil, Food Prices, India, US, Vietnam

India is expected to secure its position in World top 10 richest place list by 2017 with its increasing number of millionaires. A report by banking giant Barclays revealed that emerging markets like India, China and Russia are fast catching up with the rich countries in terms of their wealth and India is projected to be in the 8th position among the world’s top 10 wealth centers in coming decade.

“Over the coming decade, the gap in wealth between the world’s most developed countries and the leading emerging markets will continue to narrow with many new millionaires being created in India, China, Russia and other countries which are undergoing rapid development,” says Barclays Wealth Report.

Barclays told that the four emerging markets - India, China, Brazil and Russia will house so many millionaires in the coming decade and will replace the more developed economies such as Australia, South Korea and Portugal from the list and the markets will no more be categorized as emerging markets.

In India, there would be 4, 11,000 households with wealth in excess of USD 1 million by 2017. The numbers of mass affluent, with wealth over $500,000, is expected to rise from a negligible figure in 2007 to 1.9 million by 2017, the report said.

The country’s financial assets stood at $1.8 trillion in 2006, more than double its GDP, a higher ratio than that in Latin America, Eastern Europe or Russia, it added.

Where the second fastest growing economy India is expected to come at position eight in the top 10 wealth centers, China is likely to move up to third rank from its present seventh place. Russia can move from 19th to 11th position while Brazil can swing to 12th from 15th.

Other developed countries are falling from their position. Australia’s ranking fell from 10th to 16th, while South Korea dipped to 12th from 15th and Portugal came down to 34th from 25th.

In 2007, G7 countries- Canada, France, Germany, Italy, Japan, the UK and the US, contained more than one million millionaire households. By 2017, there would be 12 countries with one million USD millionaire households, the report said.

“In long-term, India’s economic prospects look rosy, although there remain obstacles to growth, including poor infrastructure, trade barriers and a shortage of skilled labor” Barclays added.

Tags: Australia, Barclays, Brazil, China, India, Portugal, Rich, RIchest, Russia, South Korea, World

Prime Minister Manmohan Singh dismissed all the possibilities of bio-production fuel from food grains in India saying that country would not follow Brazil to use sugar for bio-fuel production. Currently India is facing an unprecedented inflation and shortage of food grains. Concerned on this issue, Prime Minister asked his government not to use food grains for the production of bio-fuel in India as it will definitely enhance inflation crisis.

According to Vilasrao Muttemwar, the minister for non-conventional energy, who is accompanying President Pratibha Patil on her 3-nation tour to Brazil, Mexico and Chile, “The prime minister is very particular that we should not use food grains for producing ethanol or any bio-fuel even if we are facing energy crunch. We cannot afford that.”

Pime Minister asked to use alternative sources of bio-fuel production.

“He has also made it clear that we will grow the (bio-fuel producing) plants (like Jatroba) in waste lands and we should ensure that there would not be any diversification from the traditional cultivation,” Vilasrao said, adding that the country has around 35 million hectares waste land that can be used for cultivation of such plants.

“But how can a country like India where a section of its large population still faces shortage for food grains, can use food grains for the production of fuel? We promote bio-fuels made of plants like Jatropha and energy out of indigenous natural resources,” the official said.

There has been a concern in the world about the increasing usage of food products to create the fuel that led to a food grain shortage. India and Brazil both imports 80 percent fuel. Like Brazil, India also needs to use alternative sources of fuel to level its import from other countries. India, the second biggest producer of sugar after Brazil, mandated in 2003 that nine of its states add a five percent ethanol mix to petrol.

Eighty percent of two million cars made in Brazil have flexi-fuel engines and the country has reduced its requirement of petrol sustainability since then. It has also emerged as the lowest cost producer and leading global exporter of fuel ethanol. Ethanol now makes more than 20 percent of Brazil’s transport fuel market, while the use of alternative fuels in the rest of the world is a scant one percent.

The government has proposed to constitute a bio-fuel board to formulate and implement a comprehensive plan for the production of alternative energy sources.

“The sugar producing states use 10 percent ethanol in the fuel,” Vilasrao Muttemwar, minister of non-conventional energy, told IANS.

The usage of ethanol, which releases less carbon dioxide than fossil fuels, helps to reduce the pollution in the air.

Economists have raised concern that the US move to use maize in the production of the ethanol was one of the reasons behind the current food crisis in the world.

President Patil has also shown his concern over the issue saying, “This is a matter of concern. Experts from both the countries will come together to discuss the matter.”

When asked whether India will seek Brazil’s cooperation in producing ethanol from sugar, Patil said: “That is one point of discussion.”

Tags: Bio Fuel, Brazil, food grains, India, Manmohan Singh, MM Singh, PM, Pratibha Patil, President

India is ready to change the shape of Business world in coming 10 years along with China, Brazil and Russia. A study revealed that India will play an effective role in worldwide business by 2018.

A study by Chartered Management Institute of London includes business situations and prospects till 2018. It gives the view of work situation then and picture of management and how the organizations are ready to face that. According to study, countries like China, Brazil, Russia and India will put a heavy effect on the business. These countries will change the business sketch of the world. New business models are presented in response to these changes but there is a need of new talent likes to create an understanding of foreign culture and variety.

It is said that developing countries are growing economically hence migrants are willing to come back to their countries from west. This will lead to lack of man power in western countries. Study also said that Business structure and model will be changed n coming 10 years. Business based on group will replace global corporate. There will be a need of Technology blending with resources to hold success. Organizations will need to have more knowledge about global market. Many incidents which seem different of others can create some links to effect business.

Study also revealed that social protest among minority groups in China and India declines economy and violence in Iran, Pakistan etc. leads to move the business downward critically.

All the developing countries including India are successful in concealing loss in global economy and same is expected in future. A global firm Alliance Dresdner Economic Research linked with Germany’s Financial Services Information revealed this fact. According to the report, economical activities are sharp in India but there is no view of loss in America also. Russian economy has shown an increase by 8 per cent during 2007.

Export is decreased from America by these countries but there was export fro Europe and Euro become stronger than dollar. Overall there is no significant effect on export. There is an increase in prices of various commodities but developing countries have exporters of these commodities and they got profit also. Import is increasing compared to export and these countries have no problem because oh having sufficient foreign money and enough funds.

Tags: Brazil, Business, China, India, London, Russia, UK, US, World