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India's retail inflation is projected to surge to 6.15% in October, exceeding the Reserve Bank of India's (RBI) tolerance threshold of 6%, according to a new report by Union Bank of India. The spike is attributed to persistent <keyword id="21013592" type="General" weightage="20" keywordseo="food-price-pressures" source="keywords">food price pressures</keyword> and the waning of favorable base effects from the previous year. Earlier this month, RBI governor Shaktikanta Das also echoed similar sentiments and noted that the inflation print for October 2024 could stay well above 5.5%. This is why, as Das highlighted, cutting interest rates as early as December would be very early and premature The <keyword id="19999655" type="General" weightage="20" keywordseo="Consumer-Price-Index" source="keywords">Consumer Price Index</keyword> (CPI) data for October, which will be released at 4 pm on Tuesday, as opposed to the previous practice of releasing this data at 5:30 pm on the 12th of every month, follows September's inflation reading of 5.49%, up from 3.65% in August 2024. The last time inflation breached the RBI's upper limit was in August 2023. Despite the RBI's anticipation of an October inflation "hump," the Union Bank report suggests that the magnitude of the increase might raise concerns, particularly as November's figures are also tracking at elevated levels. The bank maintains its forecast of unchanged interest rates in December's monetary policy meeting, with a modest 50 basis points rate cut cycle predicted to begin in February 2025. Food inflation remains a key driver of price pressures, with vegetables and edible oils leading the recent surge. In September 2024, India's YoY food inflation rate hit 9.24%, up from 5.66% in the month prior. However, the report projects some easing of food inflation in the January-March quarter, citing typical winter price moderation and improving prospects for rabi crops. Despite this, potential risks from food supply disruptions, imported edible oil prices, and the impact of potential trade tariff hikes will exist. The RBI, which aims to maintain retail inflation at 4%, has held the repo rate steady at 6.5% for the tenth consecutive time in its last meeting as part of its inflation containment strategy. A recent SBI report also noted that expecting rate cuts in this quarter would be immature, and easing was possible only during the first half of 2025. "Given the current estimates of FY25 real GDP growth at 7.2% and CPI at 4.50%, the RBI would quite possibly keep policy rates stable over the coming quarter at least. Emerging trends in the growth outlook would possibly determine the timing and extent of any policy easing. With near-term CPI numbers likely to stay elevated, it’s premature to consider expectations of any easing in the December review. "However, high-frequency data do validate a softness in growth data on an incremental basis. Given the anticipated aligning of CPI closer to the target over H2, a shallow easing, if any can be a reasonable possibility over H1 of CY 25", it added.

Retail inflation expected to breach 6% mark in October, says UBI Report

After two straight years of substandard yields, a beacon of bright light finally appeared in mid-January 2024. According to Agricultural Minister <keyword id="20373047" type="General" weightage="20" keywordseo="arjun-munda" source="keywords">Arjun Munda</keyword>, Indian farmers had sown more <keyword id="47374" type="General" weightage="100" keywordseo="wheat" source="Orion">wheat</keyword> than in the previous years this time around, which could help the nation set a new wheat production record during the ongoing 2023-24 <keyword id="50895" type="General" weightage="20" keywordseo="crop" source="Orion">crop</keyword> year. But the weather, it appears, had other plans. You see, wheat is extremely sensitive to high temperatures! Last year, temperature fluctuations played a major role in the overall shortfalls and subsequent food price inflation. However, the expectations of a bumper <keyword id="6417335" type="General" weightage="20" keywordseo="harvest" source="Orion">harvest</keyword> this year received a boost when the India Meteorological Department (IMD) also predicted that March maximum temperatures were likely to remain normal to below normal in many parts of several wheat-growing states — including <keyword id="19911160" type="General" weightage="20" keywordseo="punjab" source="keywords">Punjab</keyword>, a major part of India’s “food bowl” states. But just as the farmers were preparing to harvest the yield of their hard labour, disaster struck. Untimely hailstorms and heavy rain lashed some parts of India's wheat-cultivating belt in the last couple of weeks, threatening the dream of a record-breaking crop yield this year. These storms wreaked havoc in Punjab, in particular, damaging around 1,50,000 hectares of wheat and rapeseed crops that now lay slouched over in the fields. Now, farmers anxiously await damage assessments while bracing for potential yield losses due to the severe weather. Further, the downpours and hail, combined with forecasts of above-average temperatures and heatwave days in some other parts of Northwest India in March, could spell more trouble for the upcoming harvest. Wheat is harvested between April and May. According to IMD’s long-range summer forecast, daytime temperatures are likely to be above normal in most of the country from March to May — including in about half of Punjab. In addition, all of the wheat-belt states, including Punjab, <keyword id="19904807" type="General" weightage="20" keywordseo="haryana" source="keywords">Haryana</keyword> and Uttar Pradesh, will see more than the usual number of heatwave days this summer season. All of these factors could have an effect on the wheat output this year. However, there is still reason for cautious optimism. The recent hail-affected area represents only a small fraction of India's overall wheat plantings, and some crops are expected to recover. According to a report by the Business Standard, experts explained that some of the hail-bent wheat will revive, and overall, the crop condition appears promising at the moment. It is a crucial time for India in terms of crop output. The farm ministry had predicted a record wheat harvest of 112 million tons in 2024, which would have allowed them to lift 2022’s shipment curbs that had been put in place to ensure <keyword id="118345" type="General" weightage="20" keywordseo="food-security" source="Orion">food security</keyword> and control domestic prices in the nation. It remains to be seen if the weather damage forces them to reconsider these plans.

Last-minute patch of intense rain and hail affects wheat harvest across India’s ‘food bowl’ states

<ul><li>The <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> is likely to maintain status quo on policy rates for the fourth time in a row month, say experts.</li><li>This is in view of the stubbornly high retail <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword>, elevated crude oil prices and more.</li><li>The <keyword id="6357126" type="General" weightage="20" keywordseo="monetary-policy" source="Orion">Monetary Policy</keyword> Committee (MPC) meeting is scheduled for October 4-6, 2023.</li></ul> The Reserve Bank is likely to maintain status quo on policy rates for the fourth time in a row at its bi-monthly monetary policy review meeting early next month, as retail inflation continues to remain high and the US Federal Reserve has decided to keep a hawkish stance for some more time, according to experts. The Reserve Bank had raised the benchmark repo rate to 6.5 per cent on February 8, 2023 and since then it has retained the rates at the same level in view of the stubbornly high retail inflation and certain global factors including elevated crude oil prices in the international market. The Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) meeting is scheduled for October 4-6, 2023. The last meeting of the MPC, the highest rating-setting panel, was in August. "We do expect the RBI to hold on to a status quo position this time as inflation is still high and liquidity tight. In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too," said Madan Sabnavis, Chief Economist, Bank of Baroda. Sabnavis further said there are uncertainties relating to Kharif crop, especially on pulses, which can increase prices. "The comfort is that there is less concern on growth which is on target," he added. Although the <keyword id="134096" type="General" weightage="20" keywordseo="consumer-price-index" source="Orion">Consumer Price Index</keyword> (CPI)-based retail inflation eased a bit to 6.83 per cent in August from 7.44 per cent in the preceding month in July, it remained above the Reserve Bank's comfort level of 6 per cent. It may be mentioned that the government has mandated the RBI to keep inflation at 4 per cent with 2 per cent margin on either side. Aditi Nayar, Chief Economist, ICRA Limited said the headline CPI inflation is expected to ease to 5.3-5.5 per cent in September 2023 from 6.8 per cent in August 2023, benefitting from the halving of the average price of tomatoes as well as a favourable base. "... We expect the CPI inflation to ease to 5.6 per cent in Q3 FY2024 and further to 5.1 per cent in Q4 FY2024, amid upside risks to food inflation on account of the impact of uneven and sub-par monsoons and low reservoir levels on Kharif yields and Rabi sowing, respectively," she said. Nayar said ICRA expects the MPC to remain on hold in October 2023 policy, while continuing to demonstrate caution amid a cloudy outlook for food inflation and elevated crude oil prices. The Reserve Bank has projected CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. On his expectations from the next bi-monthly monetary policy, Sanjay Bhutani, Director, Medical Technology Association of India (MTaI) said the RBI has gone along with the market sentiment of retaining the benchmark interest rate at 6.5 per cent for quite some time now. However, it's time for the central bank to contemplate a reduction of the interest rate with the objective of boosting growth, he said. "...if that is not possible in view of high retail inflation and the hawkish stance of the Federal Reserve, the medical technology sector, which is reeling under the burden of high debt, does expect the RBI to continue with the pause and at the same time provide some firm indication of easing rates in the near future," Bhutani opined. Sandeep Bagla, CEO, Trust Mutual Fund was of the opinion that the environment for <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword> has worsened considerably from MPC's last policy review in August. In the US and in India, the economy has shown resilient growth, and inflation numbers have risen beyond comfort levels. "While food prices have softened, crude oil prices have climbed up, thereby raising inflationary expectations as evidenced by sharp rise in US treasury yields. The MPC will consider all these factors and maintain status quo on repo rates, as headline inflation is expected to come down in the coming months," he said. The Reserve Bank mainly factors in the CPI-based inflation while arriving at its bi-monthly monetary policy. The borrowing cost which started rising in May last year has stabilised with RBI keeping the repo rate unchanged at 6.5 per cent since February, when it was raised from 6.25 per cent. Later in the next three bi-monthly policy reviews in April, June and August the benchmark rate was retained. The MPC consists of three external members and three officials of the RBI. The external members on the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Das, the other RBI officials in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor).

As inflation continues to remain high, RBI likely to keep interest rates unchanged

<ul class="summary-list"><li>Cocoa prices are hovering around 45-year highs as futures trade over $4,000 per metric ton.</li><li>Bad weather and concerns over crop disease led to lagging harvests, Bloomberg reported.</li></ul>Cocoa prices are trading at levels not seen in 45 years, as a supply crunch in the commodity drags on for another year. Prices dipped on Monday, but a string of earlier gains helped push US cocoa futures above $4,000 per metric ton, contributing to an appreciation of over 40% for the year. It's a price not seen since 1978, <a href="https://www.bloomberg.com/news/articles/2023-11-19/five-key-charts-to-watch-in-global-commodity-markets-this-week?srnd=markets-vp" target="_blank" rel="noopener">Bloomberg</a> reported, and surpasses the 2011 peak that resulted from that year's Ivory Coast export ban on cocoa. But it's still well below the 1977's high of $5,379 per metric ton.This time around, delayed harvests are exacerbating shortages that have been ongoing for two years, and the supply crunch is heading into a third year.Harvesting seasons in both Ghana and the Ivory Coast have fallen behind the pace set last year, with bad weather and crop disease concerns driving the lag.In late October, bean deliveries to Ivory Coast ports were <a href="https://finance.yahoo.com/news/cocoa-price-soars-highest-44-151348597.html" target="_blank" rel="noopener">16% behind this season</a>, a source told Bloomberg.Outlooks also remain dim as El Nino threatens to dry out West Africa, a detriment to growers. This comes against rising global demand, with processing improving in Europe, Brazil, and the Ivory Coast.Poor weather and dismal harvests have also weighed on commodities such as sugar, driving its price to a high not seen for <a href="https://www.businessinsider.in/stock-market/news/sugar-prices-spike-to-a-decade-high-on-rising-worries-of-a-global-shortage/articleshow/99441953.cms" target="_blank" rel="noopener">over a decade</a>. Poor production in India has led to export curbs on the commodity, in the government's bid to keep domestic sugar prices stable.

Cocoa prices hover at 45-year highs as lagging harvests kick off 3rd season of shortages

Even as the soaring prices of tomatoes are burning a hole in the common man's pocket, a farmer from Pune in Maharashtra has become a millionaire by selling his bountiful yield of the key kitchen staple for ₹3 crore in just over a month while overcoming various challenges. Farmer Ishwar Gaykar (36), from Pachghar village in Junnar tehsil of Pune district, had faced a difficult decision of dumping a large quantity of harvested tomatoes in May this year due to low prices. Undeterred by the setback, he continued to exhibit unwavering determination and work tirelessly on his 12-acre farm to cultivate tomatoes. Now, amid the skyrocketing prices of tomatoes, Gaykar's hard work has paid off handsomely, transforming him into a millionaire as he claimed to have earned ₹3 crore through the sale of his crop yield between June 11 and July 18. Talking to PTI, Gaykar said during the period, he sold 18,000 crates of tomatoes (each crate comprising 20 kg of tomatoes) at the Agricultural Produce Market Committee (APMC) at Narayangaon in Junnar tehsil for ₹3 crore. He aims to earn another ₹50 lakh by selling the remainder of the produce, which is roughly 4,000 crates. The total input cost of cultivation, including transportation, was ₹40 lakh, he said. "I have an 18-acre farm where I cultivate tomatoes on 12 acres. I have sold 18,000 crates since June 11 and have so far earned ₹3 crore," said Gaykar. On June 11, his produce fetched a price of ₹770 per crate (₹37-38 per kg), and on July 18, he sold tomatoes at ₹2,200 per crate (₹110 per kg ). Gaykar, who is now happy to earn handsome dividends on the produce, recalled how he had to dump a large quantity of harvested tomatoes just two months back due to low prices. "This is the best of times for the tomato growers, but we have witnessed worst times also. In the month of May, I grew tomatoes on one-acre land, but had to throw away large quantities of the produce as the prices were very low. I had thrown the produce away as the per crate rate was just ₹50, which means ₹2.50 per kg," he said. Gaykar also said that in 2021, he incurred losses worth ₹15-16 lakh and last year also he just earned a narrow profit margin. "When I was throwing the tomatoes in May this year, this yield on the 12-acre land was under cultivation. Undeterred by the setback, I kept up my resilience and commitment towards farming and continued spending on the cultivation of tomatoes," he said. "I took good care of the produce even in the scorching May heat. Due to the high temperatures, tomato cultivation in other parts took a beating, but farmers like me benefitted as we continued to work hard," he said. Another farmer Raju Mahale, who earned more than ₹20 lakh by selling 2,500 crates in the current season, said he was also jittery about tomato cultivation after May as the per acre input cost was around ₹3.5 lakh. But, he went ahead with the cultivation, receiving good dividends now. Narayangaon agriculture market trader Akshay Solat, who purchased Gaykar's produce, said as there was a boom in the market again, he purchased tomatoes at ₹ 2,400 per crate. "I have been in this trading business for the last 15 years, but I have never seen such a boom in the tomato market. Once there was a rate of ₹ 1,500 to ₹ 1,600 per crate, but such price-wise consistency in the tomato market was never witnessed," he said. He, however, said only a handful of farmers have earned handsomely this season, including farmers from Pachghar, Otur, Ambegavhan, and Rokdi. Narayangaon APMC chief Sanjay Kale said generally in this season, their market receives 1.5 lakh to 2 lakh crates of tomatoes per day, but in the current season, it has dropped to 30,000 to 35,000 crates per day. "In the last two years, farmers incurred huge losses and could not recover their production costs, which resulted in a drop in production. During the summers, the tomato crop suffered from diseases, forcing the farmers to abandon their tomato farms," he said. "I generally get tomatoes from across the state, but because of the aforementioned reasons, the market committee is receiving the produce from Junnar and Ambegaon tehsils. These are the reasons why tomato prices have skyrocketed and demand has soared," he said. Kale said since the production of tomatoes has taken a beating in north India, traders from other states come to the market in Narayangaon to purchase the key kitchen staple. The National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED) last week started selling tomatoes at a discounted rate of ₹ 90 per kg in Delhi-NCR and Patna in a bid to provide relief to consumers amid the high prices. The Centre had directed the two cooperatives to procure tomatoes from Andhra Pradesh, Karnataka and Maharashtra for distribution in major consumption centres, where retail prices have recorded maximum increase in the last month. "Though the NCCF and NAFED started selling tomatoes at the discounted rate, the government is buying the produce at ₹ 110 or ₹ 120 per kg, so farmers will continue to get what they are getting now," Kale said.

Sky-high tomato prices make Pune farmer a millionaire as he earns ₹3 cr in one month

<ul><li>Two-wheeler sales in December were driven by weddings and harvest payments to farmers. </li><li>Increased marketing, elections, crop prices and potential fuel price reductions can drive the 2W market in the long-term, says FADA. </li><li>The personal vehicle category continues to face high inventory challenges even as SUVs see good traction. </li></ul>The two wheeler industry looks to be on the upshift mode after reporting a sharp rise in sales in December. The category grew 28% year on year, outpacing the entire auto retail for the month which grew at 21% in the same period as per a release by Federation of Automobile Dealers Association (FADA). Moreover, the first half of the year looks promising with multiple tailwinds. In December, the two-wheeler sales were driven by an abundance of wedding dates and the distribution of harvest payments to farmers, which enhanced purchasing power. “The availability of a wide range of models and variants, coupled with favourable weather conditions and a generally positive market sentiment, contributed to this robust growth,” said Manish Raj Singhania, president of FADA. Now, increased marketing efforts, buzz around general elections, possible good crop prices and potential fuel price reductions are short-term drivers that will push demand post mid-January. This as the inauspicious Kharmas period, that started on December 16 will end on January 15. In the long-term, festivals, robust wedding season in the first quarter of 2024, is also expected to push demand. “The sector expects a boost from new model launches, especially in the first half of the year, and an overall better economic condition coupled with higher EV participation. Improved customer sentiments, due to factors like lower fuel prices and crop payments to farmers, are likely to drive demand,” FADA says. All India vehicle retail data for December 2023 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">December 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change YoY </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two wheelers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14,49,693 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.56% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Three wheelers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">95,449 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">36.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,93,005 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.65% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tractors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">78,872 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial Vehicles </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">73,896 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.31% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19,90,915 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.14% </td></tr></tbody></table>Source: FADA PVs: The stress of inventory overhang The sales of passenger vehicles (PV) paled in comparison to 2Ws and three-wheelers, growing by 3% year on year in December. The PV category continues to face challenges with high inventory levels, despite a slight decline observed at the end of December. The average inventory for PVs ranges from 55-58 days, while the same stands at 15-20 days for 2Ws. “A significant concern was the high inventory levels, reflecting over-supply. This ongoing issue of high PV inventory, despite a slight decrease by the year's end, remains a critical area for OEMs to address, emphasizing the need for further moderation in inventory management," said Singhania. Within PVs however SUVs saw strong demand, with extended waiting periods for key models. This surge was fuelled by aggressive year-end promotions and the introduction of new models. In the short-term, the sector will have to focus on clearing pending bookings and launching new 2024 models. Despite concerns over high inventory levels and the impact of year-end discounts, positive market sentiments and the introduction of new models are likely to drive growth, FADA says. New launches, stable market sentiments and many OEMs launching their EVs should keep the PV market busy in 2024. “However, caution should be exercised regarding excess inventory as well as the need to match production with actual market demand,” says FADA.

You Searched For "high crop prices" and got 6 results

Retail inflation expected to breach 6% mark in October, says UBI Report

BI India Bureau

Last-minute patch of intense rain and hail affects wheat harvest across India’s ‘food bowl’ states

Ankush Banerjee

As inflation continues to remain high, RBI likely to keep interest rates unchanged

PTI

Cocoa prices hover at 45-year highs as lagging harvests kick off 3rd season of shortages

Filip De Mott

Sky-high tomato prices make Pune farmer a millionaire as he earns ₹3 cr in one month

PTI

Shifting gears: Election and crop payments to drive 2-wheeler sales in first half of 2024

Katya Naidu

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