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By Sameer Mohindru
India may be at loggerheads with Pakistan over a wide range of issues but one of its policies is unwittingly working in favor of its regional rival: New Delhi's export ban on wheat and ordinary rice.
India’s government-held stocks of food grains hit an all time high of over 65 million metric tons this month, more than double its strategic reserve requirements. Nevertheless, the export ban, first introduced a few years ago to tame inflation, is still in place.
Pakistan, in contrast, permitted exports of surplus wheat this year. Despite having witnessed its worst-ever floods in 2010, instead of pressing the panic button, rice shipments have also continued unhindered.
Pakistan has already exported a record 2 million tons of wheat this year and several hundred thousand tons more are in the pipeline, Muhammed Najib Balagamwalla, chairman of the Seatrade Group, a Karachi-based commodities trading company told India Real Time on Thursday. He said exports may reach nearly 3 million tons by early August. After that, he said it's likely to taper off, since by then excess stocks would have been mostly shipped out.
“India’s wheat and rice if permitted to be exported, is more competitive than that of Pakistan’s in the global market,” a Mumbai-based executive with a glob [...]
Here is a roundup of news from Indian newspapers, news wires and Web sites on Thursday, June 16, 2011. The Wall Street Journal has not verified these stories and does not vouch for their accuracy.
Anna Hazare Threatens to Protest Again: The loudest voice in the crusade against corruption, the soft-spoken Anna Hazare, has said he will have to start his Jantar Mantar protest again in view of what he calls the government’s u-turn on the Lok Pal Bill. (Source: NDTV)
UPA Couldn’t Handle Lokpal Activists: Narayana Murthy: The latest attack on the UPA’s handling of corruption has come from Infosys founder Narayana Murthy. Otherwise an admirer of the UPA government, Mr. Murthy said that given the stature of the Prime Minister and Sonia Gandhi, he found their handling of the Lokpal Bill sad. (Source: NDTV)
Nigamanand’s Kin to Fast if Body not Given for Rites: The family of Swami Nigamanand Thursday threatened to go on an indefinite fast if the seer’s body is not handed over to them for the last rites. (Source: PTI)
Bombay HC Intervenes in Dey Murder Case, Seeks Status Report: The Bombay high court has intervened in the Jyotirmoy Dey murder case and has sought a status report from Mumbai police in the ongoing probe. (Source: Times of India)
Home, Auto Loans to Become Costlier as RBI Hikes Key Rates: Be prepared to pay more every month on your home, auto and other loans, as the Reserve Bank on Thursday, for the 10th time since March, 2010, raised key interest rates by 25 basis points in its effort to control spiraling inflation. (Source: Times of India)
40% of Metro Phase-III to be Underground: In order to carry out construction work without overtly inconveniencing road users or modifying existing flyovers, the Delhi Metro Rail Corporation has planned a record stretch of underground secti [...]
Bharatiya Janata Party chief Nitin Gadkari's disparaging comments on Wednesday about ruling Congress president Sonia Gandhi have set off a fresh round of political jousting between the two national parties.
Mr. Gadkari offered a rather unflattering comparison to Mrs. Gandhi's assurances about her party's commitment to fight corruption at a televised address to a party meeting in the eastern city of Kolkata.
"Sonia says that we'll get rid of corruption," said Mr. Gakari, beaming broadly, and clearly aiming to entertain. "I'd like to say, in good fun, that's like Pakistan saying 'We'll fight terrorism.'"
India believes that Pakistan's Inter-Services Intelligence is linked to terror groups that have planned attacks in India and most Indians view promises from Islamabad on dealing with militant groups as hollow ones. But Pakistan denies that its main intelligence agency is linked to such groups.
"When Pakistan says it'll fight terrorism, not even the people in Pakistan believe it, and nor does anyone else in the world," continued Mr. Gadkari. "And when Congress leaders say they'll fight corruption, even people in Congress don't believe it."
In a speech met with a great deal of laughter, the opposition party chief continued to roast the ruling party.
He took a dig at the possibly thwarted ambitions of finance minister Pra [...]
By Jason Chow from WSJ's Scene Asia blog:
Indian food hit a new level of respectability in America Wednesday night: Floyd Cardoz, a Mumbai-born chef who was behind the now-closed contemporary Indian restaurant Tabla in New York City, won the Top Chef Masters, the hit culinary competition TV show on the Bravo network in the U.S.
His winning dish: Upma, a simple breakfast and tea-time favorite for Indians made from semolina. The rest of his menu borrowed heavily from Asia in its ingredients. Included in his three-course feast was a rice-crusted snapper in a fennel-laced broth, as well as his take on beef rendang, a Malaysian stew where the meat is braised in coconut milk and spices.
As the winner, Mr. Cardoz is awarded $100,000 to be given to the charity of his choice. The Indian cook pledged his money to cancer research.
Continue Reading on Scene Asia.
Banking shares recovered from initial losses after the Reserve Bank of India increased policy rates by an expected quarter of a percentage point.
With interest rates unlikely to get much higher, the worst may be over for banks, said analysts.
In afternoon trade Thursday, the Bombay Stock Exchange's Bankex was down 0.1%, outperforming the 30-share benchmark Sensex, which was 0.4% lower.
Investors had drubbed banking shares Wednesday, fearing that the Reserve Bank of India would surprise the market with a sharper-than-expected rate increase, as it had in its previous monetary policy review in early May.
The inflation reading for May, released Tuesday, increased these fears further, pointing at a higher-than-expected rise in the wholesale price index.
But, there were no surprises from the RBI Thursday and banking shares pared losses.
Some bankers also said they did not feel the need to increase their own lending rates immediately, in response to the RBI's rate increase.
M.D. Mallya, chairman and managing director of Bank of Baroda, a large state-owned lender, told CNBC TV-18 that liquidity is reasonably comfortable at this point and he doesn't expect an increase in banks' lending and deposit rates immediately.
Analysts say interest rates in the system are at or close to their peak.
"At the mo [...]