India’s rice export ban raises worries of similar measures for sugar amidst tightening global supplies

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August 7, 2023

Following India’s decision to prohibit certain rice exports in order to manage domestic prices, traders express concern that another essential food commodity, Sugar, might become susceptible to similar measures.

As global supplies of sugar tighten, the world’s reliance on sugar exports from the South Asian nation has grown significantly. However, there are mounting concerns due to uneven rainfall across India’s agricultural belts, which has raised apprehensions that sugar production might fall short for a second consecutive year during the upcoming season starting in October.

As a consequence, this could potentially curtail the country’s capacity to export sugar. In response to safeguard domestic supplies and stabilize prices, the government has already imposed limitations on the overseas sale of wheat and certain rice varieties. These measures add further strain to global food markets, which have already been disrupted by adverse weather conditions and escalating conflicts in Ukraine.

Also Read: Indian government implements open market sale of wheat and rice to curb rising prices

The rice export ban is a clear signal the government is concerned about food security and inflation, said Henrique Akamine, head of sugar and ethanol at Tropical Research Services. “The worry now is that the government will probably follow suit and do something similar regarding sugar,” he added.

According to Aditya Jhunjhunwala, President of the Indian Sugar Mills Association, sugar cane fields in the primary producing regions of Maharashtra and Karnataka experienced insufficient rainfall in June, resulting in crop stress. As a consequence, the group anticipates a 3.4% decline in sugar output compared to the previous year, with an estimated production of 31.7 million tons in the 2023-24 season. However, Jhunjhunwala also mentioned that despite this decrease, domestic demand can still be met with the available supplies.

In the meantime, India is gearing up to utilize a larger quantity of sugar for biofuel purposes. The Indian Sugar Mills Association foresees mills diverting approximately 4.5 million tons of sugar to produce ethanol, marking a significant increase of 9.8% compared to the previous year.

“At this production level, India might not release any export,” said Bruno Lima, head of sugar and ethanol at StoneX. “We’ll have to follow closely if the ethanol diversion will be done in full.”

On Friday, Food Secretary Sanjeev Chopra criticized ISMA’s early evaluation of reduced sugar production, stating that it is highly premature and has caused unnecessary panic about a potential shortage in the country, as reported by the Press Trust of India.

India has imposed limitations on sugar exports in the past. For the 2022-23 season, the country set a cap of 6.1 million tons for shipments, a significant decrease from the 11 million tons allowed in the previous year. Analysts, including Akamine and Lima, project that for the next season, the export allowance might be further reduced to only 2 million to 3 million tons or potentially eliminated entirely. This situation poses a risk of triggering another surge in global sugar prices.

Sugar futures have witnessed a rise of approximately 20% this year, although they have slightly retreated from their peak in April when they reached 26.83 cents per pound, the highest level seen since 2011. Investors are concerned about the potential impact of El Niño, which could result in hotter and drier weather conditions in South and Southeast Asia, thus adversely affecting sugar production in those regions. Furthermore, Thailand might also experience a decrease in sugar output due to these weather uncertainties.

The combination of reduced production in various regions, such as Southern Africa and Central America, adds to the potential for another price rally in the sugar market. Akamine predicts that prices could trade within the range of 25 cents to 27.5 cents per pound in the upcoming season, while on Friday, they stood at 23.69 cents. However, the abundant sugar crop in Brazil is acting as a limiting factor on further price gains.

As of now, the Indian government is not expected to finalize the 2023-24 sugar export quotas. Since the harvest is scheduled to commence in October, any decision on export quotas is likely to be deferred until a later date. Additionally, the recent improvement in rainfall, as reported by ISMA, is anticipated to have a positive impact on the sugar crop, further influencing the government’s decision-making process.

“Officials will wait until they have full visibility of production,” said Carlos Mera, a senior commodity analyst at Rabobank.

Zomato shares surge 8% and cross INR 100 milestone after Q1 FY24 profitability; stock reaches fresh 52-week high at INR 102.8

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August 7, 2023

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In Monday’s BSE trading session, Zomato, the food delivery platform, experienced a notable surge, with its shares rallying 8% and surpassing the INR 100 milestone. Additionally, the stock achieved a fresh 52-week high, reaching INR 102.8.

Following Zomato’s attainment of profitability in Q1 FY24, its shares experienced a significant surge. The company reported a consolidated net profit of INR 2 crore for the quarter ended June 2023, marking a notable improvement compared to a loss of INR 186 crore in the corresponding quarter of the previous financial year. Notably, in the quarter ended March, the company had reported a loss of INR 189 crore.

During the reporting quarter, Zomato’s revenue from operations amounted to INR 2,416 crore, indicating a remarkable year-on-year growth of almost 71%. This substantial increase was in contrast to the company’s revenue of INR 1,414 crore reported during the same period in the previous year.

Gaurav Bissa, VP at InCred Equities, said, “Zomato has seen a very strong upmove from 58 levels when it triggered a buy signal in the Ichimoku setup. The stock has been forming higher highs and higher lows on the daily charts since Jan 2023 implying short-term trend reversal.”

“Investors are advised to buy the stock on declines towards 80 for a target price of 120-140 whereas existing shareholders can use 75 as trailing stop-loss,” Bissa said.

Meanwhile, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, “The counter is bottoming out and has also witnessed a breakout of an inverse head and shoulders formation pattern on the weekly chart. It has confirmed its breakout above INR 90. The overall structure also looks lucrative for long-term investors as it trades above all-important moving averages.”

“MACD supports the current strength, whereas the momentum indicator RSI is also positively poised. On the upside, INR 100 is the psychological resistance level; above this, we can expect a rally towards INR 114. On the downside, INR 87 is an important support level during any correction,” Pravesh said.

Commenting on the Q1 earnings and his address to the investors, Managing Director and CEO Deepinder Goyal said, “We have been working hard to make our business less complex, and putting the right people at the right spots within our businesses. These things do not have definite/measurable impact, and I can in hindsight say that most of our seemingly “risky” bets have changed the trajectory of the business significantly, much faster than we expected”.

On the issue of profitability, Akshant Goyal, Chief Financial Officer said that he expected the business to remain profitable going forward. “Knowing what we know today, we believe we will continue to deliver 40%+ YoY topline (Adjusted Revenue) growth for at least the next couple of years,” Goyal said.

Khatirdari Restaurant redefines Indian dining in Noida with a gastronomic brilliance and heartwarming hospitality

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August 7, 2023

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Khatirdari Restaurant, a new culinary gem, is poised to redefine the Indian dining experience in Noida. Nestled in the heart of the city, this culinary haven welcomes guests to indulge in the rich and diverse flavors of Indian cuisine. With a sincere commitment to showcasing the art of hospitality and the genuine ‘khatirdari’ that India is known for, Khatirdari Restaurant promises an unforgettable journey through the essence of Indian gastronomy.

“We are overwhelmed by the incredible response and love we have received from the people of Noida and beyond. It is a testament to the hard work and dedication of our team to provide an unforgettable dining experience for our patrons. We are committed to continually elevating our offerings and bringing the best of Indian cuisine to the table,” shared Swatantra Yadav, the visionary behind Khatirdari Restaurant.

Khatirdari Restaurant takes pride in offering an extraordinary dining experience that pays homage to the culinary heritage of India. Manned by renowned chefs, our menu is meticulously curated to bring together a fusion of traditional and contemporary dishes, exquisitely crafted with the freshest, locally-sourced ingredients and authentic spices. From the first bite to the last, your taste buds are in for a treat as you savor the harmonious symphony of flavors, capturing the essence of India’s gastronomic brilliance.

The ambiance of Khatirdari Restaurant is a seamless fusion of contemporary sophistication and traditional Indian aesthetics. The moment guests walk through the doors, they are enveloped in an inviting atmosphere adorned with elegant decor that beautifully reflects the essence of Indian culture. The harmonious blend of modern elements and timeless traditions creates a captivating space where diners can truly immerse themselves in a memorable dining experience, as if they’ve stepped into a captivating tapestry of Indian heritage.

Khatirdari aims to provide not just a meal but a delightful journey of flavors, where each dish tells a story of India’s culinary heritage. The restaurant’s dedicated team of chefs meticulously curates the menu, offering a symphony of traditional and innovative dishes, thoughtfully prepared with the finest ingredients and authentic spices. Its inviting ambiance and attentive service complement the extraordinary dining experience, ensuring that every guest leaves with a heartwarming memory of true Indian hospitality.

At Khatirdari, the attentive and courteous staff is wholly devoted to ensuring that every aspect of the dining experience surpasses expectations and leaves a lasting impression on each guest. With their extensive knowledge of the menu and keen eye for detail, the dedicated team is committed to delivering nothing short of exceptional service. From warm greetings to personalized recommendations, they strive to create a memorable and delightful culinary journey for every diner, making each visit truly unforgettable.

FMCG industry sees optimistic signs of recovery in rural markets as inflation eases

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August 7, 2023

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The FMCG sector experienced a boost in rural volume growth during the June quarter due to a reduction in inflationary pressures. As a result, players in the industry are optimistic about witnessing a gradual recovery in rural demand trends in the upcoming quarters. Nonetheless, companies are cautious and acknowledge the importance of closely monitoring the impact of erratic weather patterns on agricultural incomes and the potential influence of El Nino on the sector.

According to Dabur India’s CEO, Mohit Malhotra, the FMCG industry experienced a four percent increase in volume growth in rural regions during the June quarter.

“With the inflation softening, we have seen our rural growths bounce back to high single digits after three quarters. Rural growth for us was at eight per cent and urban growth was at 10 per cent in Q1. We believe rural growth will keep inching up and the gap between rural growth and urban growth for the industry will keep narrowing,” he stated on an earnings call.

During the recent earnings call, the management of Hindustan Unilever reported that rural volume growth turned positive in the June quarter of 2023, showing sequential improvements. However, they highlighted that this growth followed a volume decline experienced in the June quarter of 2022.

“Overall, with inflation moderating benefits of lower input costs were passed on to consumers through pricing actions taken in the quarter. The government has maintained its heightened amount of rural expenditure. That supports the overall situation of income levels in rural areas,” the company’s leadership stated.

The company also mentioned that the rise in government’s capex investments bodes well for non-farm incomes in rural areas. However, they emphasized the importance of closely monitoring the impact of the monsoon and weather-related risks as significant factors going forward.

Marico, on the other hand, stated that it has not yet observed any signs of recovery in terms of rural demand.

”Volume growth for the FMCG sector was in the positive territory for the second consecutive quarter, led by steady growth in urban, however, evident green shoots in rural were not yet visible. Factors such as retail inflation dropping to sub- five per cent levels, late pickup in monsoons, hike in kharif crop MSPs and higher government spending continue to give hopes of a gradual recovery in rural sentiment,” said Saugata Gupta, MD& CEO, Marico Ltd on a recent earnings calls.

He added that the extent of impact of “spatial distribution of rainfall and erratic weather patterns on rural farm incomes” will need to be seen in the near term.

Internet divided over Zomato delivery partner’s traffic signal snack: Customer’s meal or personal food?

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August 7, 2023

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In Bengaluru, a Zomato delivery partner was captured on video eating food from the delivery bag while waiting at a traffic signal. The video quickly spread across social media, raising doubts about whether the food he was consuming belonged to a customer or if it was his own meal taken during working hours.

The viral video captured the delivery partner behind his bike, indulging in small bites of what appeared to be snacks, possibly fries, taken from the delivery bag while waiting at the signal. A fellow commuter at the same signal recorded the incident and shared it on Facebook with the caption, “For all those who order from Zomato / Swiggy.”

https://www.facebook.com/watch/?v=1399878470873801

The internet is divided as a few people argue that the delivery agent is breaching the rules, and some people stood with him, saying it might be his own food. A user commented, “The vendor must seal the food perfectly and see that it’s not tampered.”

Another person said, “Common sense is that’s his office bag with name and logo and expected to have food to be delivered. It’s in best interest to keep a separate pouch or bag for their own food to avoid being a target if food companies want to be reliable and expect to have a huge market and keep up with the rapid growth.”

Meanwhile, a section of people argued, “It is not fair to jump the gun as it could be his own food.”

“Pack will be sealed, He might be eating his own food. Without knowing correctly or seeing with my own eyes, I don’t believe such posts. Never blame a person so easily who does hard work for bread,” another user commented.

However, Zomato is yet to provide clarification regarding the incident that took the internet by storm. A similar incident occurred in the food delivery business in the national capital earlier.

Zomato CEO goes the extra mile: Delivers meals and friendship bracelets to celebrate Friendship Day

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August 7, 2023

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Zomato CEO Deepinder Goyal on Sunday observed Friendship Day with a heartwarming gesture. He took to X (formerly Twitter) to share his plan of spreading joy by personally delivering meals and friendship bracelets to the dedicated delivery executives, esteemed customers, and valued restaurant partners.

The founder of the food-tech giant wrote, “Going to deliver some food and friendship bands to our delivery partners, restaurant partners and customers. Best Sunday ever!!”

In addition, he delightedly posted images of himself on a Royal Enfield motorcycle, clutching a collection of friendship bands adorned with the inscription, ‘best food friends forever.’

Going to deliver some food and friendship bands to our delivery partners, restaurant partners and customers. Best Sunday ever!! pic.twitter.com/WzRgsxKeMX
— Deepinder Goyal (@deepigoyal) August 6, 2023

The CEO’s heartwarming gesture drew praise and excitement from amused users, who couldn’t help but express their admiration and delight.

One person wrote, “Zomato orders over Swiggy today where people are hoping to meet the CEO.”

Another user expressed their desire to have Goyal as their delivery partner and playfully inquired if he would be delivering in Chandigarh. Meanwhile, a grateful individual thanked Zomato for being their reliable ‘food friend’ during the absence of their domestic help.

Goyal has previously embraced the role of a Zomato delivery person on more than one occasion. On New Year’s Eve, he took it upon himself to deliver a few orders received through the app. Sharing the experience on Twitter, he even mentioned that his first delivery was made to the Zomato office itself.

In total, he proudly fulfilled four orders, adding to the excitement of his delivery adventures. Interestingly, his X (formerly Twitter) bio humorously reads, “Delivery boy at Zomato,” showcasing his playful and hands-on approach to the company he leads.

Just last week, Zomato achieved a significant milestone, posting a profit for the first time since its establishment in 2008. On August 3, the company proudly announced a net profit of INR 2 crore in the first quarter of the current financial year. In a light-hearted exchange on X (formerly Twitter), a user playfully suggested that Goyal could have borrowed the INR 2 crore from him instead of going door-to-door for deliveries. Responding with humor, the CEO appreciated the quip and playfully dubbed it the “Tweet of the day.”

Also Read: Zomato’s profitable quarter ignites bullish outlook; brokerages raise target prices

In a recent move, the food delivery platform introduced a trial fee of INR 2 per order, regardless of the cart value. According to the app, this modest fee is aimed at helping them cover operational costs and ensure the smooth functioning of Zomato.

Olive oil and fox nut prices skyrocket by 80% in a year due to extreme weather

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August 7, 2023

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The surge in inclement weather has led to a notable rise in inflation for both everyday kitchen essentials and premium superfoods favored by the affluent and health-conscious individuals. A combination of droughts in Europe and Bihar has triggered a staggering 80% increase in prices for olive oil and makhana (fox nut) within a year, with predictions of further escalation in the days ahead.

This week, Turkey, the world’s leading olive oil producer, implemented an export ban, exacerbating global shortages of olive oil and contributing to the maintenance of high prices. India, which relies entirely on imports to fulfill its olive oil demands, is also affected by this situation.

Since the onset of the Covid pandemic, Makhana, a traditional snack from eastern India made by popping water lily seeds, has gained widespread popularity among affluent consumers throughout the nation. However, in recent months, the prices of Makhana have surged by 70% at the factory gate due to the adverse effects of extreme heat, which resulted in the drying up of artificial ponds utilized for Makhana cultivation.

“Retail prices of olive oils in India have increased by around 70-80% YoY, while the prices have shot up by 20% in the last two months. The prices of extra virgin and extra light categories will go up by another 40% in the next two months, while the pomace category is stable for now,” said Akshay Modi, an office bearer of the Solvent Extractors’ Association.

On various online platforms, the Maximum Retail Price (MRP) for extra virgin olive oils from the top brands ranges between INR 1,000 and INR 1,400 per liter.

India imports about 13,000 tonnes of olive oil of all grades every year. Global olive oil prices will remain firm as supplies from Turkey have stopped. “Imports have remained flat for the last few years due to high import duty and increasing prices at origin,” said Modi.

Makhana gained immense popularity as a superfood after 2017 when seed prices skyrocketed, reaching a historic high of INR 22,000 per quintal. The significant returns enticed numerous paddy farmers to venture into Makhana cultivation in artificial ponds, effectively meeting the rising demand. However, the scenario changed drastically as demand declined, causing seed prices to plummet to a mere INR 3,500 per quintal in November of the following year.

DrinkPrime takes swift action in response to water contamination incident in Bengaluru; offers free water quality checks to subscribers and non-subscribers

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August 7, 2023

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In response to the unfortunate incident at Mahaveer Ranches apartment in Bengaluru, where 100 residents fell ill due to a sudden water contamination problem, DrinkPrime, a Bengaluru-based tech-driven startup specializing in Water Quality and Safety solutions, took immediate action to address the situation.

With a firm commitment to ensuring sustenance and uninterrupted access to safe drinking water, DrinkPrime promptly reached out to its subscribers residing in the affected apartment to prioritize their safety and well-being.

After conducting rigorous water quality testing, the subsequent report revealed some alarming findings.

Vijender Reddy Muthyala, Co-Founder and CEO, DrinkPrime, said, “During the water contamination period, we saw a drop in input water quality on our servers. Our team reached out to 40+ DrinkPrime subscribers residing in the apartment to ensure their safety and scheduled water quality and maintenance checks as part of the #DrinkPrimeComesHome initiative.”

“From the water quality report, we could figure out that the level of total dissolved solids (TDS) and hardness was higher than acceptable limits. This means that the water quality did not conform to IS 10500:2012 drinking water specification for the two parameters. Our IoT servers run with data from our IoT-enabled water purifiers, and the water quality data we got from the samples collected from our subscriber homes have shown similar results.”

Upon reaching out to their subscribers and offering support, the DrinkPrime team went a step further by providing free water quality checks even to non-subscribers. Through this initiative, the team was able to conduct complimentary water quality tests for all concerned individuals who were worried about the potential health effects of contaminated water. Notably, DrinkPrime documented the entire incident along with the testimonials of both subscribers and non-subscribers in a video that was subsequently published to create awareness about the situation.

Watch the video here:

Leveraging IoT technology, DrinkPrime relies extensively on monitoring water quality and the health of their water purifiers. This tech-driven approach plays a vital role in ensuring clean, safe, and healthy drinking water for all their subscribers. In light of the recent incident, DrinkPrime remains vigilant, closely monitoring the situation in the affected apartment. Moreover, they are extending their efforts to the rest of their subscribers, offering free water quality checks to uphold their commitment to providing safe drinking water to everyone.

Delhi government simplifies HCR license process, boosting hospitality sector with reduced red tape

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August 7, 2023

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The Delhi government has taken a step to streamline the issuance of hotel, club, and restaurant (HCR) category licenses through its Excise department, aiming to invigorate the city’s hospitality industry. An official stated that the application process for an HCR license, which previously involved four steps, has now been reduced to just two steps, significantly saving time by minimizing paperwork.

“This four time back and forth movement of files was found to be not only consuming valuable time but also a hassle to the applicants. Now, a simplified process put in place will ensure speedier disposal of HCR license applications,” said the officer.

Under the new procedure, the HCR license application, accompanied by the necessary documentation, will be presented before the licensing authority, who is the deputy commissioner (excise). This authority will be responsible for granting approval to dispatch an inspection team to assess the suitability of the intended HCR establishment. Upon receiving the team’s endorsement, a notice will be issued to proceed with the licensing process.

The inspection report would then be signed by an assistant commissioner and notice would be issued to be pasted at the proposed premises seeking any objections from the local residents within 15 days.

In the next step, the file will be again placed before the licensing authority after the notice period is over, and if there are no objections, sent for approval to issue the offer letter on payment of license fee.

After receipt of the payment online, the assistant commissioner (HCR) will notify the applicant, who will receive the copy of license, the login id and password through registered mail, added the document.

Mangaluru hotels and restaurants implement 10 percent price hike on food and beverages due to soaring costs

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August 7, 2023

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Hotels and restaurants in Mangaluru have implemented a 10 percent increase in food and beverage prices. This decision comes in response to the rising costs of food commodities, gas, rent, and electricity. Moreover, other establishments are also considering following suit with price adjustments in the coming days.

Some hotels said that they usually hike prices on menus in September, but this year they were forced to do it early, since it is difficult to sustain their business.

According to Kudpi Jagadeesh Shenoy, a hotelier and president of the Dakshina Kannada Hotel Owners Association, the association has made a decision to increase food and beverage prices by 10 percent, starting from August 1st.

“The milk price has been hiked twice within a year, and increased by INR 6. Apart from that, the price of every commodity has seen a steep rise in the past year. Adding to it, LPG and electricity rates have been hiked too. In addition, hotels need to give pay increments to their employees. Considering all this, a 10 percent hike has been done,” said Shenoy.

Despite the fear of losing customers, only a few hoteliers have currently implemented the revised menu prices. However, they emphasized that it is inevitable and more establishments are likely to follow suit in the near future.

“Our hotel was following a wait-and-watch policy, and hoped that prices of some items that are commonly ordered will come down. However, it has not. We’re going for an 8 percent to 10 percent hike starting next week,” said Vasant Kamath of Anmol Family Veg Restaurant, Bejai. “The prices of all commodities are expected to go up. For example, tur and urad dal, widely used in hotels, have seen an increase in price by INR 50 per kg. We will not be able to sustain our business unless we hike the price,” stressed Kamath.

Prakash Udupa, the proprietor of Indra Bhavan and Vishwa Bhavan hotels, both of which have a history spanning more than seven decades, confirmed that they had raised the prices of their items back in April.

“I cannot imagine hiking it again, though the profit margin is less. In April, we increased the prices of items by a few rupees. We may consider hiking tea or coffee prices in the coming days, since the price of milk, as well as tea or coffee powder has increased,” he added.

The hoteliers emphasized that previously, the profit margin stood at approximately 10 percent to 12 percent, but it has now diminished to 5 percent.

Hotels offering non-vegetarian food have also chosen to increase their prices, attributing the decision to the extraordinary surge in the costs of edible oils, commercial LPG gas, and other essential materials used in the industry.

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