India has sought details from food regulators of Hong Kong and Singapore who have banned the sale of four products from well-known Indian brands of spices due to high levels of pesticide residue that can cause cancer if consumed over a long period. The commerce ministry has requested a detailed report from the Indian embassies in both countries on the issue. The banned products belong to MDH and Everest, containing pesticide ‘ethylene oxide’ beyond permissible limits. The ministry is investigating the root cause of the rejection and corrective actions with the exporters concerned.
In economic news, extreme weather events and geopolitical tensions may impact India’s inflation in the near term, according to the Reserve Bank of India’s April Bulletin. Retail inflation in March eased to 4.85%, but food inflation remains elevated. The weather department has forecast above-normal temperatures and heatwaves in some regions, potentially affecting inflation. Housing prices are expected to rise by around 5% in FY25, a significant drop from the previous year’s surge.
Household debt in India has reached an all-time high of 39.1% of GDP in the third quarter of FY24, driven by non-housing debt growth. The government is planning to boost investment in post-harvest infrastructure development to support farmers. Additionally, the Petroleum and Natural Gas Regulatory Board is revising the tariff policy for product pipelines laid out by oil companies and private refiners.
Stocks in focus today include Hindustan Zinc, Tata Consumer, Tata Elxsi, Vedanta, and Reliance. The government opposes Vedanta’s de-merger plan for Hindustan Zinc, citing potential issues from the split. Stay tuned for more updates on these developing stories.