Category: business

Indian Tea Association Holds 138th AGM: Reviews Challenges Faced By The Industry And Propounds Solutions

Kolkata, 3rd February 2022: The Indian Tea Association (ITA) today held its 138^th Annual General Meeting under the chairmanship of Shri Vivek Goenka. In keeping with COVID safety protocols, the meeting was conducted on a virtual platform. Dr. Himanta Biswa Sarma, Hon’ble Chief Minister of Assam graced the occasion as the Chief Guest. Other dignitaries present were Shri Sunil Barthwal, IAS Secretary to the Govt of India, Ministry of Labour and Employment and Dr K N Raghavan, Deputy Chairman, Tea Board of India.

Over the past two years, the 1.2 million-strong workforce of the Indian Tea Industry has shown tremendous resilience in the face of the COVID-19 pandemic. Despite India’s distinguished status on the global tea map of being the largest black tea producer in the world, Indian tea remains stressed owing to factors such as fall in production of the organized tea sector, the decline in exports, the surge in imports, prices not compensating the high cost of production etc.

Speaking to the media, Shri Vivek Goenka, Chairman, Indian Tea Association (ITA) said:

“Indian tea prices after remaining stagnant for almost a decade showed some promise in 2020 due to shortfall in production. However, in 2021 average prices have declined by 6%”

 The majority of teas are selling below Rs 200/- per kg which is below the cost of production of the organized sector.

Interventions like Generic promotion, incentivizing orthodox production, Auction reforms and value addition are critical for boosting domestic demand and exports.”

Shri Goenka also added, “mitigation of the high cost of production through the takeover of social welfare amenities through Government schemes as envisaged in the Occupational Safety, Health and Working Conditions Code, 2020 is a necessity for the future.”

Input costs have increased at a CAGR of 9% to 12% outpacing the growth in prices.

The Darjeeling tea sector has witnessed a fall of around 50% in the last decade from 13 mkgs to 6.5 mkgs. The Darjeeling tea sector which is experiencing lower crops and lower prices over the years needs special attention.

Summary of recommendations made by the ITA

Establish floor price for tea

• To protect the long-term sustainability of the tea sector, ITA is in the process of finalizing a proposal for a Minimum Floor Price for Tea.
• The detailed proposal will be submitted to the Central Government shortly.

Boosting Domestic and Export Demand

•  Enhancing the orthodox production base through incentives would enable the availability of a larger volume of exportable teas. This is necessary to meet the export target of 350 million kgs by 2025.
• Generic promotion is a necessity for boosting domestic consumption.

New Labour Laws

• The Code of Wages 2019 provides that the value of in-kind benefits are to be limited to 15% of the total wage. This would adversely impact the tea plantation sector as a significant component of the wage of a tea garden worker comprises of in-kind benefits.
• The Occupational Safety, Health and Working Conditions Code, 2020 mandates maintenance of welfare facilities in plantations either at management’s cost or through Govt. sponsored schemes.
• The pending takeover of all welfare amenities by the State in terms of the Occupational Safety Code, full adjustment of the value of in-kind benefits provided by the management to workers should be recognized/adjusted under the Code on Wages, 2019 while determining national minimum wage for the tea sector.

Tea (Promotion and Development) Bill 2022

•  The Tea Board of India has circulated a draft Tea (Promotion and Development) Bill 2022 that will replace the age-old Tea Act to promote and develop the Tea Industry. This is an important matter which will have an impact for years to come.
• The ITA has requested the Board for some time for deliberations with members and other stakeholders pursuant to which submissions will be made to Tea Board.

Sustainability

• ITA’s Sustainability cell, with its twin objective to achieve the Sustainable Developmental Goals of the United Nations as well as pursuing family-friendly policies in the estates has strengthened its partnerships with eminent global NGOs. Interventions by UNICEF to improve health, hygiene, nutrition and sanitation as well as promoting child rights and protection have helped the estates to improve the quality of life of workers and their families.
• The TRINITEA program in partnership with Solidaridad has further strengthened the small holder initiative in West Bengal and Assam.  Emphasis continues to be laid on good agricultural practices and the harvest of the quality leaf.  ITA firmly believes that the STG sector would benefit greatly from this integrated approach.

Miniklub touches the nine stores milestone in Bangalore

Marking its growing presence in India, Miniklub – India’s leading babywear brand that offers a thoughtfully crafted range of apparel & baby care products, launched a brand-new store in Bangalore. Located in HRBR Layout, the newly launched store offers a vast variety of safe and comfortable apparel for new-born to 6-year-olds.

With this new launch, Bangalore is now home to MiniKlub’s ninth retail location. Customers can expect well-trained stores staff with a spacious display of all kinds of garments and a wide range of non-apparel. The store has a large selection of sleepsuits, rompers, dresses, bedding sets, coats, tees, and tops for both girls and boys. The price range of Apparel begins from Rs. 599 onwards.

MiniKlub’s offerings include baby essentials, apparel, footwear, toys, travel care, for both boys and girls. Additionally, The ‘Preemie Range,’ handpicked for premature babies and made with particular care, has been added to the brand’s product catalogue. The range comes with a flat seem that minimizes any potential irritation to babies’ soft skin. The apparels also have press studs which make wearing and changing convenient. Besides, size labels are also positioned in a place that doesn’t bother the baby’s skin.

Expanding its footprint in the country, Miniklub is expecting to widen its presence by opening more stores by the end of 2022.

Store Address: 306, Ground Floor, 5th B cross, service road near Bp petrol pump, Bangalore 560043

Store timings: 11 AM – 9 PM

Why should you invest in gold? Read below to learn how to invest in gold

By Mr. Vikas Singhania, CEO, TradeSmart

Indians lookout to decorate their portfolios by investing into gold, believing it as pious, during the festivals. As we all know that buying Gold is not new to Indian households. Research indicates that India houses the world’s largest household gold reserves. Gold is bought on special occasions like weddings and childbirths. Although gold is a physical asset much like real estate, its shine hasn’t been dulled by financial or digital investment assets.

Gold investment continues to be going strong and for good reasons.

Why should you invest in gold?

Inflation helps:

As gold is a primary commodity, it gets more expensive with rising costs, providing lucrative returns in an inflated economy.

Exchangeable:

Gold is a currency in its own right. Even when you don’t have an acceptable fiat currency, gold can be exchanged for a whole lot of utilities. This makes gold particularly beneficial when a currency collapses or gets overthrown.

Limited supply:

Gold is a precious metal and rare. With limited scope for finding more, gold will only become more precious in the future. Moreover, gold cannot be produced artificially. Lesser supply and higher demand have always led to price appreciation, making gold investment a good long-term wealth appraisal tool.

Liquidity:

One can easily buy and sell gold hoardings, making it a highly flexible and liquid investment.

Utilities:

Gold finds its usage in various industries like space engineering and electronics, and all these offerings are big-ticket industries. This ensures that gold will always be in demand. Moreover, gold can be used as jewellery as well.

Safety cushion:

For those who invest in the equity market heavily, gold can act as a safety cushion for emergencies when the stock market crashes. Gold investments have been known to perform better during bear markets.

How to invest in gold?

There are various ways to make gold investments. Here are the five best ways to make a jewellery gold investment in India:

Buy physical gold: 

Gold bullion or coin is one way to go about it. However, this may come with the anxiety of misplacing or losing the metal. Also, you’ll need adequate storage.

Gold ETFs or Gold Exchange Traded Funds: 

A gold ETF is listed on the stock exchange and can be bought and sold by stock market investors. Gold ETF investments also denote possession of real gold with 99.95 percent purity, which can be converted to physical assets upon reaching 0.5-1kg worth of gold units.

Gold funds: 

A gold mutual fund is a scheme that invests in Gold ETFs and maps the movement of ETFs to determine returns. This is more suitable for gold investment done solely for monetary benefits and not for actual gold possession. In a gold fund investment, one doesn’t have to purchase a minimum of 1 gm that ETFs require. SIP options begin at INR 1,000.

E-gold: 

The National Spot Exchange Limited (NSEL) launched e-gold to enable investors to buy gold in smaller denominations (1mg, 2mg, etc.). A separate Demat account is needed for e-gold investments and the gold mirrors prices of the Indian gold market. This is contrary to ETFs which are often influenced by the international market as well.

Sovereign gold bonds: 

The Government of India and Reserve Bank of India have launched sovereign gold bonds, which are government securities that issue gold in denominations of 1gm. You can get fixed interest every fiscal year with cash on maturity.

Gold vs Cryptocurrency: Which is a better investment?

Cryptocurrency has emerged as the new financial asset you need to get your hands on. It is a blockchain-powered currency that facilitates peer-to-peer transactions and eliminates the need for a middleman. Posing various threats to fiat currencies, cryptocurrencies are transparent, accounted for, and limited in supply given the ‘mining’ complications.

In the recent past, cryptocurrencies like Bitcoin, Dogecoin, and Ripple have delivered more than 100 percent returns.

Cryptocurrencies perform better in a falling market and thus provide a haven to investors. Not so different from gold in this aspect! Moreover, bitcoin has been termed “The Digital gold”.

Here’s a comparison between gold and cryptocurrencies to understand them better.

Both these asset classes are rare, transparent, and liquid. While they have often been touted against each other, we believe they are not rivals but friends. Investing in cryptocurrency would become more reliable with advancements in technology.

Gold vs Mutual Funds: Which is a better investment?

Mutual funds are tools that pool in money from various investors and then invest in the share market and bonds to generate returns.

Let us compare the two.

Mutual funds are riskier and more volatile, however, that also opens new avenues for aggressive growth.

There is no one-size-fits-all when it comes to investing. Weigh in on all your options before making the decision.

FAQs

1) Should you make gold investments?

Yes, gold can prove to be a good hedge against inflation and bear markets.

2) Are ETFs better than gold funds?

Gold ETFs allow you to get ownership of gold, while gold mutual funds are purely for money appreciation with no real gold ownership. However, gold fund investments are more affordable, starting at INR 1,000 a month.

3)What are the factors that affect the gold rate in India?

The Indian gold rate changes because of the international gold rate, USD-INR currency fluctuation, and customs duty, among other factors.

How tech-driven brands are redefining housing opportunities post-pandemic

By – Mr. Jai Kishan Challa, CEO, and Founder of Curated Living

The COVID-19 pandemic has revolutionized the housing sector. In the new normal, better lifestyle and enhanced living spaces are taking precedence for most professionals. Since a majority of the younger generation either engage in a remote or hybrid work culture, more housing spaces are integrating cutting-edge technologies to redefine living experiences.

The pandemic has spurred the new digital nomad lifestyle where most millennials look for an interplay of personal space with well-equipped facilities. A majority of housing spaces are undergoing significant transformations to stay relevant and offer best-in-class solutions in the post-pandemic world. The housing industry’s whole value proposition has shifted to designing spaces that proffer socially positive, safe, convenient, and collaborative experiences. As technology enables the sector to recuperate from the COVID-19 disruptions, it brings to the fore a plethora of high-tech housing opportunities.

Ensuring safety and hygiene

Health and hygiene have become a priority in the post-pandemic world. By using advanced technology and organized hospitality, the housing sector paves the way for an enhanced living experience without compromising hygiene or safety. For instance, using an AI-powered thermal camera facilitates easy detection of those with high-temperature while zeroing down people not wearing masks. It reduces the risk of exposure while curating a protected living experience. More organized players in the housing sector are gradually shifting to high-tech facilities that will prove to be a gamechanger in the foreseeable future.

Digitized processes for seamless customer experience

With mobile and web apps, almost all aspects of housing have gradually digitized. A sector that always relied on face-to-face interactions has gone virtual, with people getting familiar with the transition steadily. From finding a place to booking it, the tech-enabled platforms have indeed added a layer of transparency and ease to the entire rental process. Furthermore, most rental accommodations have even made the complete move-in and move-out process digital. Catering to the burgeoning needs of the end-consumer, the housing sector is investing in new-age technologies like AI and ML to deliver better and customized services.

Service applications for guests and tenants

Convenience has become the key aspect in the housing segment. Some of the significant players in the sector provide guest service apps to the tenants and the guests. They facilitate seamless communication with the tenants while assuring on-time fulfilment of immediate requests. Additionally, the residents can log complaints, request room service, laundry service, and even raise room change requests. More housing operator companies are turning to mobile apps to enable smoother communication with tenants while improving their living experience.

Curating community experiences digitally

While pandemic blues brought a grinding halt to people’s social lives, digital tools are gradually bringing back wholesome community experiences. Social in-person interactions have shifted to online meets. Many housing spaces have even been organizing online events to enhance value-based interactive sessions. Simultaneously, more people are embracing mixed living with co-living spaces. Around 90% of the millennials staying in co-living spaces prefer it over unorganized rental spaces. As a result, tech-enabled building designs and processes have empowered the sector to enrich the residents’ experience. New-age solutions like thermal cameras, cloud-based surveillance systems, and touchless entrances can further ensure residents’ safety.

Final Note

With more tech-driven companies entering the market, the housing sector is witnessing a tectonic shift to well-equipped living spaces. Introducing new digital solutions and services has further increased the competition while ensuring an enhanced customer experience. The housing industry’s remarkable resilience, coupled with the gradual technological adoption, is set to thrive further in the post-pandemic world.

Post -Budget quote from Mr. Dibyendu Bindal, Founder & CEO – MIGHTY Foods

By – quote from Mr. Dibyendu Bindal, Founder & CEO – MIGHTY Foods

“It’s very heartening to see the government’s focus towards a sustainable future, EV segment etc. The push the government is giving towards new startups will motivate new and young entrepreneurs. I was hoping the government will cut down taxes on Plant-based food to bring it at par with the Farm and meat industry.”

Budget 2022 – A Broad-based Road Towards Robust Economy

Budget 2022, February 2 – LoanTap would like to present its gratitude to the powers that be, for establishing a rock-solid foundation of vertical growth for the Indian Economy with the Annual Budget for FY22-23. This budget aims to give a blueprint to steer the economy over the course of the next 25 years. India’s growth is estimated to be at 9.2%, the highest among all large economies which reflects that we are now in a strong position to withstand challenges as the Finance Minister claimed.

The government is complementing macro-growth with micro-all-inclusive welfare, digital economy, and fintech, tech-enabled development which has paved a way for the FinTech industry to rise beyond belief. Budget 2022 is promising for public investment and capital expenditure which will enhance the economy in many ways. The initiative to improve the quality of life of citizens in the most backward districts of the country, through aspirational districts progress has been translated into reality with the Budget 2022.

In recent years, digital banking, digital payments, and fintech innovation have grown at a rapid pace in the country. The government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every new local corner of the country in a consumer-friendly manner. Taking forward this agenda, and to mark 75 years of independence, it is proposed to set up 75 Digital Banking units in 75 districts of the country by scheduled commercial banks which has marked a bold Budget this year.

The fact that urban development is of critical importance is well known. On the one hand, we need to nurture the megacities and the insolence to become current centers of economic growth and on the other, we need to facilitate tier two and tier three cities to take on the mantle, in the future and uplift those cities to become the upcoming hubs of Tech and Progress.

Further, there has been a phenomenal increase in transactions with digital assets. The magnitude and frequency of these transactions have made it imperative to provide a tax regime accordingly.

LoanTap believes that India is set to move forward and upwards economically and in due process, multi-dimensional upliftment of all segments of the society shall follow. We are now on a Broad-Based Road Towards a Robust Economy.