rott
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India’s Cash Crunch Starts to Choke the Food Supply Chain
- Thread starter endyashainin
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randomradio
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randomradio
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http://www.news18.com/news/india/wh...onomic-affairs-secretary-explain-1309756.html
Giving statistics to support the move, Das said that while the increase in the circulation of notes of all denominations had grown by 40% between 2011-16, those of 500 rupees had increased by 76% while those of 1,000 rupees had grown by 109%. The economy had expanded only 30% in this period.
“This shows the disproportionate increase of high denomination notes,” Das said.
Giving statistics to support the move, Das said that while the increase in the circulation of notes of all denominations had grown by 40% between 2011-16, those of 500 rupees had increased by 76% while those of 1,000 rupees had grown by 109%. The economy had expanded only 30% in this period.
“This shows the disproportionate increase of high denomination notes,” Das said.
randomradio
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@Han Patriot
Now this is far more damaging to the economy than demonetization.
http://indiatoday.intoday.in/story/...pposition-nov-28-demonetisation/1/817709.html
A united Opposition today called for a nationwide Bharat Bandh on November 28 to escalate their protest over the demonetisation drive.
IndiaToday.in | Edited by Nivedita Dash
New Delhi, November 23, 2016 | UPDATED 15:23 IST
A +A -
A united Opposition today called for a nationwide Bharat Bandh on November 28 to escalate their protest over the demonetisation drive.
More than a dozen Opposition parties have decided to intensify their campaign against the note ban in the states where they are either in power or have a significant presence.
Earlier today, upping its ante against Prime Minister Narendra Modi's continued silence and absence from Parliament despite growing demands for him to speak on demonetisation, 13 Opposition parties protested outside Parliament.
Among the protestors were leaders from the Congress, the Trinamool Congress and the BSP.
Meanwhile, Union Minister M Venkaiah Naidu said the nation is backing the demonetisation decision.
"Let the discussion take place... people want the house to function and debate this issue. The whole nation is backing the Prime Minister on this decision," he said.
Meanwhile, West Bengal CM Mamata Banerjee held a protest against demonetisation at Jantar Mantar. She said, "Farmers have lost their savings due to demonetisation. How are they going to survive. What about money in Swiss Bank."
"When our country's economy was moving at a steady rate, government brought in demonitisation that really shuffled our country, "Mamata said.
She added, "I challenge BJP that this time nobody will support their party, even their own workers will abandon them."
Now this is far more damaging to the economy than demonetization.
http://indiatoday.intoday.in/story/...pposition-nov-28-demonetisation/1/817709.html
A united Opposition today called for a nationwide Bharat Bandh on November 28 to escalate their protest over the demonetisation drive.
IndiaToday.in | Edited by Nivedita Dash
New Delhi, November 23, 2016 | UPDATED 15:23 IST
A +A -
A united Opposition today called for a nationwide Bharat Bandh on November 28 to escalate their protest over the demonetisation drive.
More than a dozen Opposition parties have decided to intensify their campaign against the note ban in the states where they are either in power or have a significant presence.
Earlier today, upping its ante against Prime Minister Narendra Modi's continued silence and absence from Parliament despite growing demands for him to speak on demonetisation, 13 Opposition parties protested outside Parliament.
Among the protestors were leaders from the Congress, the Trinamool Congress and the BSP.
Meanwhile, Union Minister M Venkaiah Naidu said the nation is backing the demonetisation decision.
"Let the discussion take place... people want the house to function and debate this issue. The whole nation is backing the Prime Minister on this decision," he said.
Meanwhile, West Bengal CM Mamata Banerjee held a protest against demonetisation at Jantar Mantar. She said, "Farmers have lost their savings due to demonetisation. How are they going to survive. What about money in Swiss Bank."
"When our country's economy was moving at a steady rate, government brought in demonitisation that really shuffled our country, "Mamata said.
She added, "I challenge BJP that this time nobody will support their party, even their own workers will abandon them."
randomradio
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The rabi planting season is over.
Nov 11 article.
http://economictimes.indiatimes.com...-crop-planting-jumps/articleshow/55375486.cms
It was over just around the time demonetization started. Some continued planting until 18th, but the farmers could buy seeds, saplings and fertilizer using the old notes until last night.
A very important aspect of rural India's ability to thrive through adversity.
http://timesofindia.indiatimes.com/...demonetization-blues/articleshow/55480560.cms
Existence of barter economy in the rural areas of Naxal-affected districts of east UP has kept panic over demonetization away from most of the villages.
"The system of giving edible oil, spices, salt, soap and other articles of daily use in exchange of food grains has always existed in our shops. Even big traders, who supply these articles to our shops barter them with food grains in the markets of Baburi (Chandauli). We do not have to go to banks to exchange demonetized notes," Hajari Lal, a general merchant in Sahijanikala village of Mirzapur said.
Shop owners in neighbouring Pasahi village Lakhedu Sao and Girja Devi could also be found busy in weighing paddy of their customers to provide them articles of daily needs in exchange. Girja said, "Customers at our shops come for purchasing oil, salt or other articles of maximum Rs 50 at a time. As per present rate of paddy in local market, we purchase per kg of paddy for Rs 10." These villages have some big farmers but the total population is dominated by farm labourers, who belong to the castes like Musahar.
Badri, a labourer of Pasahi village said, "For tasks like sowing and cutting the crop, farmers give paddy, wheat or other food grains as wages. We get cash only in case of getting job under MNREGA or working at construction sites. But these payments are made in big currency notes rarely." Umar Ali and Kashinath said, "We have no money, so we have no tension of going to banks to exchange or deposit them."
Big farmers like Arvind Kumar Singh of Dharmapur village in Chandauli looked worried due to delay in getting money from bank, where he had deposited demonetized currencies on Sunday. He said, "The big and medium farmers, who have to purchase seed and fertilizers for sowing Rabi crop are worried as the bank officials are unable to say when the farmers would be allowed to withdraw money." Elderly farmer Ram Kaval said in Dhaneja village that if the banks would take time of more than a week to normalize, the problems for the farmers would increase.
Though queues were seen in the banks of rural areas in Chandauli but the the size was not as long as in urban areas. SO Baburi in Chandauli YK Yadav said, "There are 10 branches of bank. But we never realized the need of deploying more than two police constable at any bank as people are cooperating with bank personnel. The only grievance of villagers is the delay in making payments by the banks."
Nov 11 article.
http://economictimes.indiatimes.com...-crop-planting-jumps/articleshow/55375486.cms
It was over just around the time demonetization started. Some continued planting until 18th, but the farmers could buy seeds, saplings and fertilizer using the old notes until last night.
A very important aspect of rural India's ability to thrive through adversity.
http://timesofindia.indiatimes.com/...demonetization-blues/articleshow/55480560.cms
Existence of barter economy in the rural areas of Naxal-affected districts of east UP has kept panic over demonetization away from most of the villages.
"The system of giving edible oil, spices, salt, soap and other articles of daily use in exchange of food grains has always existed in our shops. Even big traders, who supply these articles to our shops barter them with food grains in the markets of Baburi (Chandauli). We do not have to go to banks to exchange demonetized notes," Hajari Lal, a general merchant in Sahijanikala village of Mirzapur said.
Shop owners in neighbouring Pasahi village Lakhedu Sao and Girja Devi could also be found busy in weighing paddy of their customers to provide them articles of daily needs in exchange. Girja said, "Customers at our shops come for purchasing oil, salt or other articles of maximum Rs 50 at a time. As per present rate of paddy in local market, we purchase per kg of paddy for Rs 10." These villages have some big farmers but the total population is dominated by farm labourers, who belong to the castes like Musahar.
Badri, a labourer of Pasahi village said, "For tasks like sowing and cutting the crop, farmers give paddy, wheat or other food grains as wages. We get cash only in case of getting job under MNREGA or working at construction sites. But these payments are made in big currency notes rarely." Umar Ali and Kashinath said, "We have no money, so we have no tension of going to banks to exchange or deposit them."
Big farmers like Arvind Kumar Singh of Dharmapur village in Chandauli looked worried due to delay in getting money from bank, where he had deposited demonetized currencies on Sunday. He said, "The big and medium farmers, who have to purchase seed and fertilizers for sowing Rabi crop are worried as the bank officials are unable to say when the farmers would be allowed to withdraw money." Elderly farmer Ram Kaval said in Dhaneja village that if the banks would take time of more than a week to normalize, the problems for the farmers would increase.
Though queues were seen in the banks of rural areas in Chandauli but the the size was not as long as in urban areas. SO Baburi in Chandauli YK Yadav said, "There are 10 branches of bank. But we never realized the need of deploying more than two police constable at any bank as people are cooperating with bank personnel. The only grievance of villagers is the delay in making payments by the banks."
rcrmj
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a simpleton country with simpleton people, and the result is that the country is simply a shamble and a mess. there is no honesty and integrity about that country. just visit there and do business with them you'd learn the hard lesson
Dungeness
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A little too harsh, bro. Personal experience?
rcrmj
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of course, do business with Indian, and you'd know how cunning and unreliable they are
Dungeness
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Years ago I went to Yiwu to visit vendors, some of them told me they had to use recycled materials on Indian orders, because they really drove hard bargains on pricing. And Indians don't blame their greedy businessmen, but blame "Made In China".
randomradio
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http://www.moneycontrol.com/news/sm...9-percent_7958761.html?utm_source=ref_article
There is a view propelled by gang of astrologers masquerading as economists that demonetisation is going to hit hard economy as cash will be sucked out of system and trade will stop.
Demonetisation has happened. Rs 500 and Rs 1000 notes are banned. There are serpentine queues outside banks/ATMs and experts are busy. There are high pitched videos, columns, tweets and Facebook posts by every expert about how poor are hurt and how this will kill trade. Roll back demands are being made from every arm chair economist, citizens dining in five star hotels but extremely concerned about poor, many chief ministers. Overall, air of the nation is thick with not only smog but also with pro poor and small business friendly experts and politicians.
There is a view propelled by gang of astrologers masquerading as economists that demonetisation is going to hit hard economy as cash will be sucked out of system and trade will stop. This hypothesis does ring true if one notices the plugging sales at e-commerce ventures, lack of crowd in markets and drop in foot falls at malls. No wonder all ‘Captain Obvious’ are at top of lungs on the incoming slowdown hitting Indian economy due to this demonetisation.
History tells us that events rarely follow obvious path and are shaped by unforeseen and unpredicted. Demonetisation is such an event. It is not going to slow down the economy but going to put this economy in high pedestal of growth. A jump by 2 to 3 percent in GDP, if not more by demonetisation is very much possible and for the first time in the world, we will see trickle up-effect in the economy than usual trickle down.
The first foremost and obvious effect of demonetisation is elimination of cash economy and shift towards banking system. Lot of people even without illegal money were not using banks and were saving in cash at home for variety of reasons. Now, all this money will go in formal banking channels and will find its way to formal earning mediums like mutual funds, fixed deposits, saving accounts etc. This will create a push and boom as the cash lying idle at home will be at work and will create contagion effect. Those dormant ‘Jan Dhan’ accounts will now be kicking with life and in big way.
Even if 10 percent cash lying idle at household level, translates into Rs 1.4 lakh crore (USD 21 billion). Now this, USD 21 billion will be available in banking system and hence available to government/industry to kick start new projects/ build infrastructure. To get a relative perspective, FDI inflow in India in FY2015-16 was USD 40 billion while in FY 2014-15, it was USD 30 billion so the amount coming from dormant accounts to banking system alone is 53% of this year FDI and almost 70 percent of FY14-15 FDI.
The second kicker to the economy will come from fall in real estate prices. As per exerts and general perception, real estate prices are going to fall by 20 to 30 percent in general (black component of a deal). In India, in FY 2015-16, if one just take top 8 cities, USD 14 billion worth (Rs 90,000 crore) was invested in real housing (3 lakh houses in 8 cities at a 30 lakh average price though in reality numbers are much higher).
As per experts, real estate prices are expected to crash by 20 to 25 percent. This drop in prices even if we take 50 percent drop in number of transactions will leave more than 9,000 crore (USD 1.3 billion) money at the hand of these end users in just 8 cities and this amount will be 10x more higher if one account for whole country. This extra cash available with the consumer will go in other discretionary consumption and will either build the saving rates or drive consumption of services as well as consumable goods.
The third and not so obvious kicker will come from attempt of all back money hoarders trying to convert it in white. As per data released by RBI, India has Rs 14 lakh crore (USD 210 billion) in circulation in Rs 500, Rs 1000 bank note denominator. For a moment, if we assume on a very aggressive basis that 50 percent of it is white and declared income (fully tax paid), still there is Rs 7 lakh crore (USD 105 billion) in black money. Now, these cash hoarders will try to use people with low income to transfer Rs 2.5 lakh in account. As per financial ministry data, India has opened 25 crore (250 million) ‘Jan Dhan’ account for poor people as on today. If black money hoarders were able to use 50 percent of these accounts (12.5 crore) to deposit cash, one just needs to deposit Rs 70,000 in each account. So apparently all this cash will flow back in system in next 50 days without any collateral damage to these money bags. However, the cost of organising this deposit program will range anywhere from 20 to 40 percent (as per figures being circulated in media/social media). Even if we take a nominal cost of this transaction at 10 percent being paid to these accounts (against 30 percent), it will be a commission of Rs 70,000 crore (USD 11 billion) or Rs 8,000 per ‘Jan Dhan’ account.
This 8,000 will immediately find its way to consumption as this is massive cash for these account holders and even if just 50 percent is spent, Indian economy will see pumping of USD 6 billion (Rs 40,000 crore) being spent in next 3-5 months. This class will binge on clothes, consumer goods and will create massive multiplier effect. However, for the first time multiplier will not trickle down but will trickle up as rural or low cost goods will drive the industry. So in a way, PM Modi has imposed huge wealth tax on the rich people and accomplished direct cash transfer to poor people.
Foreign investors pumped USD 10 billion in 20 months in Indian startups which put India on world map as third best country for startups and changed the whole mood of nation while creating many multi-billion enterprises. Payout of USD 6 billion in arrears to government employees in 2008 as per sixth pay commission, triggered consumption boom in India and insulated it from economic crisis which impacted every country. Hence, this total amount of USD 40 billion hitting the banking and consumption sector in next 3-6 months is not just going to finish black economy but going to put India on an autobahn of economic growth.
PM Modi in his usual total out of box thinking, has just put India on growth orbit of a different level where a minimum jump in GDP by 2 to 4 percent is not ruled out.
Gear up, the age of India has arrived.
There is a view propelled by gang of astrologers masquerading as economists that demonetisation is going to hit hard economy as cash will be sucked out of system and trade will stop.
Demonetisation has happened. Rs 500 and Rs 1000 notes are banned. There are serpentine queues outside banks/ATMs and experts are busy. There are high pitched videos, columns, tweets and Facebook posts by every expert about how poor are hurt and how this will kill trade. Roll back demands are being made from every arm chair economist, citizens dining in five star hotels but extremely concerned about poor, many chief ministers. Overall, air of the nation is thick with not only smog but also with pro poor and small business friendly experts and politicians.
There is a view propelled by gang of astrologers masquerading as economists that demonetisation is going to hit hard economy as cash will be sucked out of system and trade will stop. This hypothesis does ring true if one notices the plugging sales at e-commerce ventures, lack of crowd in markets and drop in foot falls at malls. No wonder all ‘Captain Obvious’ are at top of lungs on the incoming slowdown hitting Indian economy due to this demonetisation.
History tells us that events rarely follow obvious path and are shaped by unforeseen and unpredicted. Demonetisation is such an event. It is not going to slow down the economy but going to put this economy in high pedestal of growth. A jump by 2 to 3 percent in GDP, if not more by demonetisation is very much possible and for the first time in the world, we will see trickle up-effect in the economy than usual trickle down.
The first foremost and obvious effect of demonetisation is elimination of cash economy and shift towards banking system. Lot of people even without illegal money were not using banks and were saving in cash at home for variety of reasons. Now, all this money will go in formal banking channels and will find its way to formal earning mediums like mutual funds, fixed deposits, saving accounts etc. This will create a push and boom as the cash lying idle at home will be at work and will create contagion effect. Those dormant ‘Jan Dhan’ accounts will now be kicking with life and in big way.
Even if 10 percent cash lying idle at household level, translates into Rs 1.4 lakh crore (USD 21 billion). Now this, USD 21 billion will be available in banking system and hence available to government/industry to kick start new projects/ build infrastructure. To get a relative perspective, FDI inflow in India in FY2015-16 was USD 40 billion while in FY 2014-15, it was USD 30 billion so the amount coming from dormant accounts to banking system alone is 53% of this year FDI and almost 70 percent of FY14-15 FDI.
The second kicker to the economy will come from fall in real estate prices. As per exerts and general perception, real estate prices are going to fall by 20 to 30 percent in general (black component of a deal). In India, in FY 2015-16, if one just take top 8 cities, USD 14 billion worth (Rs 90,000 crore) was invested in real housing (3 lakh houses in 8 cities at a 30 lakh average price though in reality numbers are much higher).
As per experts, real estate prices are expected to crash by 20 to 25 percent. This drop in prices even if we take 50 percent drop in number of transactions will leave more than 9,000 crore (USD 1.3 billion) money at the hand of these end users in just 8 cities and this amount will be 10x more higher if one account for whole country. This extra cash available with the consumer will go in other discretionary consumption and will either build the saving rates or drive consumption of services as well as consumable goods.
The third and not so obvious kicker will come from attempt of all back money hoarders trying to convert it in white. As per data released by RBI, India has Rs 14 lakh crore (USD 210 billion) in circulation in Rs 500, Rs 1000 bank note denominator. For a moment, if we assume on a very aggressive basis that 50 percent of it is white and declared income (fully tax paid), still there is Rs 7 lakh crore (USD 105 billion) in black money. Now, these cash hoarders will try to use people with low income to transfer Rs 2.5 lakh in account. As per financial ministry data, India has opened 25 crore (250 million) ‘Jan Dhan’ account for poor people as on today. If black money hoarders were able to use 50 percent of these accounts (12.5 crore) to deposit cash, one just needs to deposit Rs 70,000 in each account. So apparently all this cash will flow back in system in next 50 days without any collateral damage to these money bags. However, the cost of organising this deposit program will range anywhere from 20 to 40 percent (as per figures being circulated in media/social media). Even if we take a nominal cost of this transaction at 10 percent being paid to these accounts (against 30 percent), it will be a commission of Rs 70,000 crore (USD 11 billion) or Rs 8,000 per ‘Jan Dhan’ account.
This 8,000 will immediately find its way to consumption as this is massive cash for these account holders and even if just 50 percent is spent, Indian economy will see pumping of USD 6 billion (Rs 40,000 crore) being spent in next 3-5 months. This class will binge on clothes, consumer goods and will create massive multiplier effect. However, for the first time multiplier will not trickle down but will trickle up as rural or low cost goods will drive the industry. So in a way, PM Modi has imposed huge wealth tax on the rich people and accomplished direct cash transfer to poor people.
Foreign investors pumped USD 10 billion in 20 months in Indian startups which put India on world map as third best country for startups and changed the whole mood of nation while creating many multi-billion enterprises. Payout of USD 6 billion in arrears to government employees in 2008 as per sixth pay commission, triggered consumption boom in India and insulated it from economic crisis which impacted every country. Hence, this total amount of USD 40 billion hitting the banking and consumption sector in next 3-6 months is not just going to finish black economy but going to put India on an autobahn of economic growth.
PM Modi in his usual total out of box thinking, has just put India on growth orbit of a different level where a minimum jump in GDP by 2 to 4 percent is not ruled out.
Gear up, the age of India has arrived.
rcrmj
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so you've been saying again and again and again`````
