Curbs put on onion exports | BS

BS reports

The government has swung into action to curb onion exports and check the rise in prices in the domestic market by effecting an 8 per cent hike in its minimum export price (MEP).

The MEP has been increased by $25 per tonne to $330, with effect from February 12. Also, export canalising agencies have been directed to go slow on exports.

“Measures have been taken to make exports less lucrative and augment the domestic availability of the commodity,” said Alok Ranjan, managing director, National Agricultural Cooperative Marketing Federation (Nafed), which revises the MEP every month.

Centre mulls fund to check food prices

FE reports

The government is considering setting up a price stabilisation fund along with a market intervention plan for all agriculture products. This is part of the Centre’s larger gambit to rein in the rising prices of agricultural products.

A proposal to this effect is under the consideration of the agriculture ministry. Officials said a concrete plan to this effect would be firmed up after consulting the ministry of finance.

The move comes at a time when inflation has spiked to a two-year high of 6.58%, mainly on account of dearer food and agriculture products.

Update
FE rightly criticizes the move - here:

Sadly, many of the UPA’s policies illustrate a price control mindset. Instead of intervening only when there is demonstrated market failure, it wants to dictate prices.

Besides, what does price stabilisation mean? Does it mean procurement by the government, as with foodgrains? Other than distortions in resource allocation, such intervention will strain scarce public resources. Even if there is no procurement, it is unlikely that farmers will contribute to the fund in boom years, as quid pro quo for compensation in lean years. The fund will, therefore, not be financially viable, apart from the administrative problem of delivering across 90 million small holdings.

Govt to help India Inc keep on buying

Mint reports

The government has decided it needs to help Indian companies with their global acquisitions.
The finance ministry plans to come up with an ‘outward investment policy’ in the April-June fiscal quarter and will specify the criteria on which companies will be eligible for the incentives.
The policy will offer a slew of incentives, including concessional finance, to assist domestic companies expand the global footprint. “We are hoping to be able to begin work on the policy after the budget,” a senior government official, who did not wish to be identified said.

Sugar mills demand transport sop

BS reports

The Maharashtra State Sugar Co-operative Factories Association Ltd. (MSCFAL) has asked the state government to give transport subsidy and compensate losses they might incur on recovery due to extended crushing season.

Due to good monsoon this year, Maharashtra's sugarcane production for 2006-07 season has increased by almost 80 per cent from 445 lakh metric tonne to 700 lakh metric tonne.

Now, the state government is pressing those sugar co-operatives and private sugar mills who have excess capacities to take responsibility of crushing sugarcane. The sugar co-operatives have shown willingness to take this burden but sought financial assistance from the government.

Government bans wheat exports

BS reports

In its latest initiative to control the rising prices of essential food items, the government has banned wheat exports for the whole of 2007.

A notification from the Directorate General of Foreign Trade (DGFT) said the ban came into effect on February 9.

Agricultural commodities, including wheat, have contributed significantly to the steady rise in inflation, which stood at 6.58 per cent for the week ended January 27. The wholesale inflation level in wheat for the same week stood at 11.74 per cent.

Skype refutes Trai charges

BS reports

The Nasdaq-listed Skype has clarified that it is not a service provider nor a grey market operator, but is a software application allowing users to communicate free over the internet. The company, in its reply to the consultation paper on ‘Review of Internet Services’, stated that inclusion of Skype as a “grey market foreign company” was not correct......

The company is responding to a statement by the Telecom Regulatory Authority of India (Trai), which had mentioned Skype as a grey market company. The regulator, in its consultation paper on December 27, 2006, stated that companies such as Skype, MSN and Messenger were offering IP-based telephone services without paying the licence fee to the government.

The regulator had said: “Loss of revenues, unlicensed operation by certain firms and depleting market share of licensed operators are some of the reasons which necessitated a review of policy of internet services and ISP licensing conditions.”....

The US-based company sells ‘SkypeIn’ -- a number which allows the user to communicate over the internet using Voice over Internet Protocol. A ‘SkypeIn’ is being provided for either three or 12 months. SkypeIn is available in 14 countries. It is not available in India.

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Check this too

Microsoft, Skype seek removal of licensing curbs on Net telephony

NEW DELHI: Global internet telephony major Skype has demanded that India remove all rigid application-specific licensing requirements for internet service providers and replace them with a light-touch regulatory regime. It has also said that ISPs should offer full-fledged internet telephony services.

In its communication to telecom regulator Trai on the review of internet services in India, Skype has said that any revenue loss to the government on account of allowing full-fledged internet services, including internet telephony would be “more than compensated for by revenues generated by overall economic gains, taxes on new broadband and e-commerce services, efficiency savings and by e-enabling government departments”. here

An earlier post on internet through DTH services here

If these two services are permitted than rural telephone, net connectivity can be ensured overnight. one wonders if the govt will drag its feet as usual given the strong vested interests in the continuation of the present system and sadly disconnect the aspirations of a large part of the country.