Vegetable prices in India are expected to remain elevated in the coming months due to above-normal temperatures until June, according to a report by Crisil. The India Meteorological Department’s forecast of an above-normal southwest monsoon in 2024 offers hope for a potential easing of prices post-monsoon. However, the distribution of the monsoon will be critical in determining the extent of relief for consumers.

DELHI VEGGIES PRICES UP AND DOWN DESPITE HEATWAVE

NEW DELHI: The onset of a heatwave across India, particularly in the northern plains, has caused discomfort in various regions, with the India Meteorological Department (IMD) forecasting severe heatwave conditions in the east and south Peninsular India. While Northwest India may experience relief with expected rainfall and thunderstorms, the intense heat poses challenges for vegetable storage and warehousing. Prices of main vegetables in Delhi’s Azadpur mandi have shown a mixed trend, with the Reserve Bank of India (RBI) warning of inflation risks due to extreme weather events. Additionally, a study by PUSAN National University in Korea highlights the heightened vulnerability of people with disabilities to heatwaves, with increased hospitalizations and medical costs, particularly for mental and respiratory diseases. Individuals with brain lesion disorders, severe physical disabilities, females, and those over 65 are particularly susceptible to heat exposure effects.

India’s vulnerability to climate change poses significant risks to vegetable production and prices, with rising temperatures exacerbating pest problems. In FY24, vegetables accounted for about 30 percent of food inflation, despite comprising only 15.5 percent of the food index. Surging prices of tomatoes and onions grabbed headlines, but other vegetables like garlic and ginger also saw triple-digit inflation. Erratic weather patterns have disrupted vegetable supplies, leading to price spikes in recent years. Short-term solutions such as buffer stocks and imports have proven ineffective due to the perishable nature of vegetables.

The lack of infrastructure, including cold storage facilities, further complicates the situation. Weather-induced supply shocks, coupled with uneven monsoon distribution, have kept pressure on vegetable prices high. In FY24, El Niño conditions and below normal southwest monsoon exacerbated the situation, leading to several price shocks. As India grapples with the challenges posed by climate change, addressing the vulnerabilities in vegetable production and distribution will be crucial to ensuring food security and affordability for its citizens.

The volatility in vegetable prices, often driven by weather-related factors, underscores the challenges facing India’s agricultural sector. With climate change increasingly disrupting weather patterns, the frequency and intensity of extreme weather events such as heatwaves, floods, and storms are on the rise. These disruptions not only affect crop yields but also exacerbate pest infestations, further impacting production and prices. In recent years, India has witnessed erratic monsoon patterns, with below-normal rainfall in some regions and excessive precipitation in others.

Such uneven distribution of rainfall disrupts planting and harvesting schedules, leading to supply shortages and price spikes. Additionally, prolonged dry spells followed by sudden heavy rains can result in crop damage and post-harvest losses, further exacerbating price volatility. The reliance on traditional agricultural practices and inadequate infrastructure exacerbates the challenges posed by climate change. Limited access to modern farming techniques, such as greenhouse cultivation and drip irrigation, hampers the sector’s resilience to extreme weather events.

Furthermore, the lack of adequate storage and transportation facilities results in significant post-harvest losses, contributing to supply shortages and price fluctuations. Addressing these challenges requires a multifaceted approach that encompasses both short-term and long-term strategies. Immediate measures, such as the creation of buffer stocks and import regulations, can provide temporary relief during supply disruptions. However, long-term solutions, including investments in climate-resilient agriculture practices and infrastructure development, are essential to building the sector’s resilience to climate change.

Enhancing the availability of cold storage facilities and improving transportation networks can help minimize post-harvest losses and ensure a steady supply of vegetables to consumers. Additionally, promoting sustainable farming practices, such as crop diversification and water-efficient irrigation techniques, can mitigate the adverse effects of climate change on agricultural productivity.

Moreover, fostering research and innovation in agriculture, coupled with effective extension services, can empower farmers with the knowledge and tools needed to adapt to changing climatic conditions. Collaborative efforts between government agencies, research institutions, and the private sector are crucial to implementing holistic solutions that address the complex challenges facing India’s agricultural sector in the era of climate change.

India’s surge in foreign exchange reserves is fuelled by a notable increase in capital inflows during the fiscal year 2023-24, demonstrating effective management by monetary authorities and boosting the nation’s financial resilience amid global economic uncertainties.

India’s economic landscape is witnessing a significant milestone as the nation’s foreign exchange reserves soar to unprecedented levels, reaching an all-time high of USD 648.562 billion. This remarkable achievement, as outlined in the Monthly Economic Review report by the Department of Economic Affairs under the Ministry of Finance, underscores India’s robust financial position on the global stage.

Notably, these reserves are more than adequate, covering 11 months of projected imports, providing a substantial buffer against external shocks and ensuring stability in the country’s balance of payments. Furthermore, India’s current foreign exchange reserves surpass 100 percent of total external debt, demonstrating resilience and bolstering investor confidence in the country’s economic fundamentals.

The surge in foreign exchange reserves is attributed to a series of factors, including a significant turnaround in capital inflows during the just-concluded financial year of 2023-24. With capital pouring into the country, India’s monetary authorities have effectively managed and allocated these resources, further enhancing the nation’s financial resilience and capacity to withstand global economic uncertainties.

Forex reserves, comprising assets held by the central bank or monetary authority, play a pivotal role in safeguarding a nation’s economy against external vulnerabilities. Typically held in reserve currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling, these reserves serve as a bulwark against currency fluctuations and provide liquidity to meet international obligations.

The resurgence of India’s foreign exchange reserves marks a remarkable turnaround from previous years, notably after experiencing a decline attributed to rising import costs in 2022. However, meticulous management by the Reserve Bank of India (RBI), including interventions to mitigate rupee depreciation against the US Dollar, has helped stabilize the forex reserves and ensure their upward trajectory.

The RBI’s interventions in the foreign exchange markets aim to maintain orderly market conditions, preventing excessive volatility in the exchange rate. Through liquidity management strategies and occasional dollar sales, the RBI effectively manages fluctuations in the rupee’s value, safeguarding the interests of exporters, importers, and investors alike. Despite global economic headwinds, the Indian Rupee has exhibited remarkable stability, with exchange rates hovering in the range of Rs 82-83.5 per USD. This stability, coupled with the Rupee’s lowest volatility in recent years, reflects the strength of India’s macroeconomic fundamentals, financial stability, and improvements in the country’s external position.

Looking ahead, India remains poised for continued economic growth, buoyed by robust foreign inflows and comfortable trade deficits. The relative stability of the rupee, coupled with proactive measures by monetary authorities, is expected to sustain investor confidence and ensure the currency remains within a comfortable range.

In conclusion, India’s record-high foreign exchange reserves underscore the nation’s economic resilience and prudent financial management. With ample buffers in place to weather external uncertainties, India stands poised to navigate future challenges while fostering sustained economic growth and prosperity for its citizens. The remarkable surge in India’s foreign exchange reserves signals a bright outlook for the nation’s economy, bolstering investor confidence and reinforcing its position on the global stage. With prudent financial management and proactive measures in place, India is poised to capitalize on emerging opportunities while ensuring sustained economic stability and growth.

The central bank said that the regulation would be effective from April 24, 2024.

In a notable shift within India’s digital payment landscape, the Unified Payments Interface (UPI) has emerged as the preferred mode of transaction, with a staggering 118 billion transactions recorded in the fiscal year 2023, as per data released by the National Payments Corporation of India (NPCI). Capitalizing on this trend, SuperUs, an Indian tech OEM, has introduced a groundbreaking innovation – the Dynamic QR Code device. This state-of-the-art device integrates the functionalities of both a cash terminal and checkout terminal, revolutionizing transaction experiences for businesses and customers alike.

With its seamless system integration, the Dynamic QR Code device ensures error-free reconciliation, promising accuracy and efficiency in payment processes. Unlike conventional solutions, SuperUs has positioned the Dynamic QR Code as a cost-effective option with numerous advantages.

Key features include: Streamlining payment processing and enhancing customer interaction Minimal installation expenses, eliminating upfront costs associated with hardware, software, and training Generation of unique QR Codes for each transaction, reducing the risk of errors Easy implementation with user-friendly systems and straightforward device management Effortless integration and Locally manufactured with in-house facilities, enabling scalable customizations The Dynamic QR Code device offers comprehensive financial and inventory data management through integration capabilities with inventory accounts and ERP systems. Its display technology, utilizing innovative E Ink electronic paper, ensures crystal-clear visuals and an enhanced user experience.

Moreover, the device’s multiple size options cater to diverse business needs, ensuring versatility and adaptability across various environments. SuperUs, as an Indian tech OEM, is committed to building connected information systems with innovative technology and smart devices. Their vision is to unify communication through premium devices, SaaS, and licensing models.

This unveiling of the Dynamic QR Code device marks a significant advancement in India’s digital payment ecosystem, providing businesses with an efficient, cost-effective solution to meet evolving consumer demands. With UPI transactions on the rise and technology playing a pivotal role in shaping the future of payments, innovations like the Dynamic QR Code device are poised to drive further transformation and propel India towards a cashless economy. For more information, visit the official website of SuperUs: www.superussystems.com. [Reference: NPCI – https://www.npci.org.in/]

SuperUs’s introduction of the Dynamic QR Code device signifies a strategic response to the changing landscape of digital payments in India. With UPI transactions witnessing exponential growth, businesses are increasingly seeking innovative solutions to streamline their payment processes and enhance customer experiences. The Dynamic QR Code device addresses these needs by offering a comprehensive, user-friendly platform that optimizes efficiency and accuracy while minimizing costs.

Moreover, its unique combination of features, such as integrated system reconciliation, error reduction through individual QR Code generation, and straight-forward implementation and maintenance, distinguishes it as a leading solution in the market. By leveraging locally built technology and manufacturing capabilities, SuperUs ensures scalability and customization to meet the diverse requirements of businesses across various industries. As India continues its journey towards becoming a digitally empowered society, initiatives like the Dynamic QR Code device play a crucial role in driving financial inclusion, promoting transparency, and fostering economic growth.

By empowering businesses with cutting-edge technology, SuperUs contributes to the broader vision of building a robust digital infrastructure that benefits both enterprises and consumers alike. Overall, the unveiling of the Dynamic QR Code device marks a significant milestone in India’s digital payment evolution, underscoring SuperUs’s commitment to innovation and excellence in the tech industry.

In FY23-24, HUL’s consolidated net profit saw a modest 1.5% increase to Rs 10,277 crore from Rs 10,120 crore in the preceding year.

Hindustan Unilever Ltd (HUL) has reported a six per cent decline in standalone net profit for the fourth quarter of the financial year 2023-24 (Q4 FY24). The company’s net profit stood at Rs 2,406 crore, down from Rs 2,552 crore reported during the same period last year.

However, there was a positive trajectory in the company’s total income, which rose to Rs 15,441 crore in Q4, according to an exchange filing on BSE.

For the entire financial year 2023-24, HUL’s consolidated net profit saw a marginal increase of 1.5 per cent, reaching Rs 10,277 crore compared to Rs 10,120 crore reported at the end of the previous year.

Consolidated total income for the company for FY24 amounted to Rs 62,707 crore, marking a 2.64 per cent increase from Rs 61,092 crore reported in FY23.

Meanwhile, total expenses for the firm witnessed a 2.3 per cent rise, reaching Rs 48,783 crore from Rs 47,683 crore year-on-year.

HUL also announced a dividend of Rs 24 per share. The closing trading price of HUL’s shares on BSE was Rs 2,260.05 on Wednesday, prior to the release of the company’s financial results.

HUL’s performance in Q4 FY24 reflects a mixed bag of results, with a decrease in standalone net profit but an uptick in total income. The decline in standalone net profit could be attributed to various factors such as increased competition, rising input costs, and potentially sluggish consumer demand in certain segments.

Despite the challenges, the rise in total income for the quarter suggests that HUL has been able to navigate through the operating environment by leveraging its diversified portfolio and focusing on strategies to drive top-line growth. The FMCG giant has likely continued its efforts to innovate, introduce new products, and expand its distribution reach to tap into emerging markets and consumer segments.

Looking at the full financial year, the marginal increase in consolidated net profit indicates a steady performance for HUL amid a dynamic and competitive market landscape. The company’s ability to maintain profitability amidst evolving market conditions underscores its resilience and adaptability.

The growth in consolidated total income for FY24 highlights HUL’s sustained efforts to capitalize on market opportunities and drive revenue growth across its various business verticals. Despite facing headwinds such as inflationary pressures and changing consumer preferences, HUL seems to have managed to grow its top line, albeit modestly.

On the expense side, the moderate increase in total expenses underscores the importance of cost management and efficiency initiatives for HUL. As input costs fluctuate and operational challenges persist, controlling expenses becomes crucial for maintaining profitability and preserving shareholder value.

The announcement of a dividend of Rs 24 per share reflects HUL’s commitment to rewarding its shareholders while maintaining a healthy balance between reinvesting in the business and distributing profits.

Moving forward, HUL is likely to continue focusing on driving innovation, enhancing operational efficiencies, and strengthening its market position to sustain growth in the highly competitive FMCG sector. The company may also explore strategic initiatives such as acquisitions, partnerships, and portfolio expansions to capture emerging opportunities and address evolving consumer needs.

Overall, while HUL’s financial performance for Q4 FY24 presents some challenges, its ability to deliver growth in total income for the quarter and the full financial year demonstrates resilience and strategic agility in navigating a complex business landscape. As the FMCG industry continues to evolve, HUL remains well-positioned to capitalize on opportunities and deliver long-term value to its stakeholders.

The Institute for Energy Economics and Financial Analysis (IEEFA) and Ember’s report, “Indian States’ Electricity Transition” (SET), underscores Karnataka and Gujarat’s leadership in advancing the clean energy transition. The report emphasizes that these states have demonstrated robust performance in various aspects, successfully integrating renewable energy sources into their power sectors and making significant progress in decarbonization efforts.

The report evaluates the clean electricity transition preparedness at the subnational level. In 2024, the report adds five more states, totaling 21 states and representing about 95% of India’s annual power demand in the past seven financial years (FY) 2018 to 2024 (up to November). This year, the assessment parameters have been updated to better align with states’ electricity transition progress, incorporating stakeholder feedback and data availability. According to the re – port, progress in states like Jharkhand, Bihar, West Bengal and Uttar Pradesh needs to improve, similar to last year’s findings. While these states are in the early stages of their transition, they now need to focus on increasing renewable energy deployment, enhancing short term market participation and strengthening their distribution companies.

The report was released when temperatures in India started to soar, leading to the Ministry of Power preparing for a projected peak power demand of 260 gigawatts. Harsh summers also offer the chance to utilise more clean energy like solar power. Although, this requires the preparedness of states to transition to clean sources of electricity. “Cyclical weather conditions coupled with faster economic activity is pushing India’s peak electricity demand higher every year.

While the central government is taking steps to integrate more renewable energy into the grid, states, too, need to be prepared to do so. Gauging subnational progress now requires constant monitoring of several parameters at the state level. A purely national overview can often overshadow subtle intricacies at the state level, which may stymie the country’s electricity transition,” said the report’s contributing author, Vibhuti Garg, Director – South Asia, IEEFA.

The report finds that while the national-level progress towards the electricity transition is progressing well, it is far more uneven at the state level. “Some states have developed progressive steps, such as boosting decentralised renewable energy deployment, promoting solar pumps for agricultural needs, and enhancing storage solutions to ensure more renewable energy in their electricity systems. But, the transition to clean electricity is still in its infancy in many states.

These states should look to accelerate the efforts to access the benefits of a transition to clean electricity and to ensure that they are not left too far behind the better performing states,” said the report’s contributing author, Aditya Lolla, Asia Programme Director, Ember. One of the major findings from the report was that several states are exhibiting preparedness to embrace electricity transition.

They perform well in the Readiness and Performance of the Power Ecosystem and Market Enablers dimensions but need to improve in the Decarbonisation dimension. “Delhi’s power system is well-prepared for decarbonisation, while Odisha has robust market enablers to support decarbonisation in the power sector.

However, their actual decarbonisation progress so far does not match their strengths in these aspects, highlighting the importance of performing well in both dimensions to effectively achieve decarbonisation goals,” said co-author Neshwin Rodrigues, Electricity Policy Analyst, Ember.