Current Affairs – October, 2013

Latest Current Affairs October, 2013 with Current Affairs, news summary on current events of National and International importance of October, 2013 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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NABARD to ensure speedy funds to states with acute storage deficiency

According to National Bank for Agriculture and Rural Development (NABARD), Eastern and North Eastern states, which are battling with acute storage deficit, will get a priority in fund allocation for building warehouses.

The government has directed NABARD to give priority to states with food deficits like Jammu and Kashmir and to treat these states favourably to cut farm losses amid implementation of the world’s biggest population feeding programme under the National Food Security Bill.

Due to lack of proper storage facilities, a large quantity of horticulture produce go waste in the eastern states. States, which are not self-reliant in food grain production, will also be treated favourably as these states perhaps need more storage facilities sooner than others to prevent food grains from going waste.

What is NABARD doing to create warehousing facilities?

The country as a whole has a gap of 47 million tonnes of storage facility. To plug this gap, the RBI has approved NABARD’s Warehouse Financing Scheme, which was created with a Rs 5,000-crore government corpus to provide direct loans to private as well as public sector companies to build warehousing facilities to strengthen the country’s food storage infrastructure. The scheme has just begun.

Background:

A few years ago, NABARD had begun using the Rural Infrastructure Development Fund (RIDF) for providing refinance to commercial banks against loans to private entrepreneurs for building warehouses.

This created controversies as the RIDF was not meant for refinancing activity. This had prompted the RBI to intervene and prohibit NABARD from doing this. So, Nabard has formulated a new scheme for both public and private consumption to fulfill the growing demand for food storage capacity.

Political uncertainties are among the factors impacting capital markets: RBI

The RBI in its Macroeconomic and Monetary Developments Second Quarter Review 2013-14 said that markets in India face domestic uncertainties arsing from prolonged slowdown, falling corporate earnings and rising leverage, besides risks of political uncertainties associated with the electoral cycle.

Elections are to be held in Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Delhi in November-December 2013. National polls are also due before the term of the current Lok Sabha ends in May 2014.

In the recent past, India’s stock markets have faced volatility on the account of fears of a tapering of the monetary stimulus by the US Federal Reserve and concerns on domestic economy.

However, as per RBI, market uncertainties remain associated with how the debt ceiling issues will play out over the next several months and whether the nascent signs of recovery in the euro area sustain.

Global financial markets also got some relief with the US Federal Reserve decision to maintain the pace of its bond purchases and its signal that withdrawal of quantitative easing may take longer. However, RBI cautioned that the financial markets could be disrupted again when the extraordinary monetary accommodation in the advanced economies is withdrawn.

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