Govt may allow sugar exports of up to 2.5 mn tonne

The government may allow up to 2.5 million tonne sugar export under the Open General Licence (OGL) scheme in the 2011-12 marketing year ending in October.

Before sugar export was brought under OGL earlier this month, the government had allowed export of 2 million tonnes of sugar in view of higher production.

With effect from May 11, sugar export has been freed by putting it under OGL with no quantitative restriction on the shipments. However, the Commerce Ministry has asked millers to register the export contracts with itself to keep a track on quantity of shipments.

"The Commerce Ministry is looking after sugar exports. It was decided to review exports once its touches two million tonnes. The industry has estimated output at 26 million tonnes and since there has been less lifting of levy sugar, there is scope for allowing additional 5,00,000 tonnes," Food Minister K V Thomas told PTI.

Levy sugar is the sweetener that government buys from mills at subsidised rate for supply through ration shops. It is mandatory for mills to sell 10 per cent of their production to the government at lower rate. Levy sugar quota is allocated to states and union territories for supply via ration shops.

The government has pegged sugar production at 25.2 million tonnes in the 2011-12 marketing year as against the annual demand of 22 million tonnes.

Industry body Indian Sugar Mills Association (ISMA) has estimated sugar production at 26 million tonnes for this year as against 24.3 million tonnes in the last year.

Modi agrees to attend BJP national executive meet

The Bharatiya Janata Party (BJP) on Thursday heaved a major sigh of relief after the disgruntled Gujarat chief minister Narendra Modi decided to participate at the two-day party's national executive meeting which began here from today. Modi, who was reluctant to attend the meet, agreed after party leader and RSS pracharak Sanjay Joshi offered to resign as an invitee on the national executive. Party president Nitin Gadkari admitted that there were differences between Modi and the party. "However, those differences have been sorted out. Modi has talked to me personally and conveyed that he will be attending the two day meet. In the meanwhile, party leader Sanjay Joshi has offered to resign as an invitee on the national executive in the larger interest of the party." Modi, who is attending one function at Udaipir, announced that he would reach Mumbai after 3 pm to participate at the national executive meet.
Further, another disgruntled leader and Rajasthan's former chief minister Vasundhara Raje, who had threatened to resign with her supporters over former home minister Gulab Chand Kataria’s planned yatra in South Rajasthan, was attending the meet.However, from Karnataka comes some more embarrassment for the party. BJP strongman BS Yeddyurappa, who is unhappy over the failure of the party leadership to reinstate him as Chief Minister, has declared that he is not going to Mumbai and all activity at his Bangalore residence this morning indicated that was not an empty threat. On a TV channel, Yeddyurappa said "Advani ji is somehow supporting Ananth Kumar. He should become the chief minister of Karnataka, that is also Advani ji's dream. I have met Advani ji 2-3 times. I explained everything about Karnataka's political situation and what Ananth Kumar is doing backdoor stabbing. I told everything. Even then, they are worried about their own post. They want their own people should become chief minister with respect to states, that is what is happening in Delhi."
Gadkari, who had recently admitted his differences with the Gujarat chief minister Narendra Modi, said the latter has communicated to work shoulder to shoulder for the party's growth. "I welcome him.He has told me he will stand with us shoulder-to-shoulder and work for the party," visibly relaxed Gadkari, adding that Mr Joshi's resignation was "a large-hearted gesture.Joshi's exit however, is seen as a blow for Gadkari -both men are staunchly supported by the party's parent body, the Rashtriya Swayamsewak Sangh (RSS).
In the resignation letter that Joshi sent to Gadkari, he reportedly said he does not want to be the reason for dissent or division in the party. Party insiders believe that Joshi was asked to quit after pressure from the BJP's Gujarat unit, who had said they would follow Modi's lead and skip the meeting.
The resignation of Joshi, an old RSS hand, would be seen as a big setback for Gadkari. Joshi was re-inducted into the party by Gadkari only a few months ago after being in political exile for six years over an MMS scandal. Modi has already skipped a party meet in November, sulking about Joshi's presence and also did not campaign for the party in the crucial UP elections earlier this year because Joshi was given an important charge there.
BJP leader, who did not want to be identified, told Business Standard that the national executive would take up amendment to the constitution of the party to allow Gadkari a second term as president after he completes his current term in December. However, he admitted that there has been opposition from a section of the party including veteran and former deputy prime minister LK Advani.
In recent days, party leaders have challenged several of Gadkari's decisions and forced him to back down on them. He had to go back on his decision to induct Babu Singh Kushwaha into the BJP in UP last year; then came the controversy over supporting the nomination of independent candidate Anshuman Mishra in Jharkhand for the Rajya Sabha. Mr Gadkari was forced to reverse that decision after other senior leaders united against him. While re-inducting Joshi last year, Gadkari had overruled all opposition and today's development will be seen as Mr Modi arm-twisting the party president and getting his way.
Today's development is also seen as a setback for the RSS. It backs Gadkari and had also backed Joshi's re-induction. Today it said this was an internal matter of the BJP. RSS spokesman MG Vaidya said, "The parties which revolve around one person, have these kinds of problems. Did anyone from Delhi know Nitin Gadkari three years back? Now they know him. Every post someone holds is respectable. Zero has no value. But if you put one before it, it is ten. Same way, if you put another zero, it's 100."
The party leaderd admitted that party's projection as a divided house would have gone against it ahead of Assembly elections in Gujarat and Himachal Pradesh scheduled by the end of this year. The BJP rules both those states and must retain them in the run-up to the 2014 General Elections. The National Executive meet would also provide an opportunity to the party to formulate a strategy on the Presidential election due soon, party leader said.

Morgan Stanley, others make $100 mn on Facebook trades

Morgan Stanley and other underwriters have made a profit of about $100 million stabilizing Facebook stock since trading began on Friday, the Wall Street Journal said, citing people familiar with the matter.

Facebook's listing, envisioned as a crowning moment for an eight-year-old company that has become a business and cultural phenomenon, has instead turned into a legal and public relations fiasco for the company and its lead underwriter, Morgan Stanley.

As a lead underwriter, Morgan Stanley would receive the largest chunk of those profits arising from stabilizing Facebook's stock price, the people told the Journal. These profits come on top of millions of dollars of IPO fees, according to the newspaper.

The underwriters made the bulk of the profit in Monday's trading when they bought shares below the $38 offering price, a person familiar with the matter told the WSJ.

Morgan Stanley was in charge of an overallotment of about 63 million shares that can be used to help support Facebook's share price. The underwriters are given the option to buy the overallotment of shares from the company at a discount.

The underwriters bought from Facebook the offering's 421,233,615 shares, but sold into the market 484,418,657 shares, including the overallotment and doing so made the underwriters "short" 63,185,042 shares, the paper said.

Morgan Stanley could not immediately be reached for comment by Reuters outside of regular US business hours.

Petrol price hike: LDF, BJP observe hartal in Kerala

The dawn-to-dusk hartal called separately by LDF and BJP in Kerala to protest the increase in petrol price partially affected normal life across the state today.

Early reports from different districts said shops remained closed in cities and towns and private buses were largely off the roads.

Private vehicles are plying and no violence has been reported from anywhere, police said.

The pro-Left transport sector unions have pledged support to the shut-down call.

Emergency services, healthcare, milk supply and media have been exempted from the hartal.

Oil rebounds above $90 in Asian trade

Oil rebounded in Asian trade today as investors bought into the market after prices fell below $90 a barrel the previous day, analysts said.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in July was up 64 cents to $90.54 per barrel while Brent North Sea crude for July gained 92 cents to $106.48 in morning trade.

Prices had slumped a day earlier as the dollar rallied on eurozone debt worries, making dollar-denominated oil more expensive and denting demand.

WTI crude fell to $89.90 yesterday, its lowest level since October, while Brent tumbled $2.85 to $105.56.

"Prices have stopped sliding because some investors see this low level as a buy opportunity," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.

He said prices remain under upward pressure because of the threat of supply disruptions in the Middle East and contagion risks arising from the eurozone debt crisis.

"The prospect of supply disruptions is still there. The US and European Union embargoes on Iranian oil will still go ahead as planned despite the current talks," added Shum.

Tough talks aimed at helping resolve the standoff between major producer Iran and the West over Tehran's controversial nuclear programme entered an unscheduled second day Thursday in Baghdad, with both sides still at odds with each other.

Investors' attention also remain focused on the eurozone debt crisis.

EU leaders at a summit overshadowed by fears Greece could leave the euro pledged support Wednesday for Athens, as officials behind the scenes considered the doomsday scenario of an exit.