Kerala’s Pinarayi govt demands immediate ban on PFI; Modi govt yet to decide

Bengaluru, May 7: Fear and anxiety gripped migrant workers who lined up at police stations in the city on Wednesday to register for train services without knowing that the state government had cancelled the train facility.

Senior officials in South Western Railway said they were ready to run special trains for migrant workers. On Tuesday evening, the state government decided to withdraw the requests made for 13 such trains to north India after realtors said they need the labourers here.

Migrants continued to stream into the railway station at Majestic, Bangalore International Exhibition Centre and even the bus station hoping for some travel arrangement. Many who were aware of the government web portal, stood in front of the BBMP ward office or police stations for enrolment.

In Varthur, over 100 migrants stood in front of the police station and sought to know what happened to the forms they had submitted four days ago. "We first went to the BBMP office and were shooed away by an official who directed us to go to the police station. We want to go home and demanded that the police help us. There was no response first. Then they came out and beat us," said Pintu Kumar from Mohanpur of Bhagalpur district in Bihar.

Though a video clip accidentally shot by Kumar showed two police personnel charging the cane at them, a police officer from the Varthur station, however, disputed the claim. "The video doesn’t show the cane landing on any person. We were beating the seat and tyre of two-wheelers to send the migrants away," he said.

At Mahadevapura, the workers came in groups and submitted the forms at the police station.

At the railway station in Majestic, a group of labourers from Bihar, Uttar Pradesh and Jharkhand had walked from several areas in south Bengaluru only to be told that there is no train. Mahendra, a labourer from Jharkhand, said they received 5 kg rice and nothing else in the last 45 days. "Now, I don’t want food. I don’t want the job or money. I can't get stuck here. I want to go home,” he said.

'Restore dignity'

Activists and leaders wrote an open letter to Chief Minister B S Yediyurappa questioning the decision to cancel trains without consulting labourers and protesting the violation of their fundamental rights.

The letter had support of 522 organisations and individuals, including Dalit rights organisations and trade unions. It urged the government to restore the dignity of the migrant workers. "We demand recognition of the autonomy and dignity of the migrant workers to decide their travel plans. No one should be forced either to stay back or to return to their home states," it said.

New Delhi, June 27: The Prime Minister Narendra Modi-led union government of India is not ready to stop all imports from aggressive China in spite of mount calls to boycott Chinese products in India.

The Centre is reportedly considering to stop only non-essential imports from the neighbouring country.

However, the Inward shipment in sectors such as automobiles, pharmaceuticals, certain electronics and others will continue until a domestic alternative is found.

“India will gradually move towards import substitution. It will not happen overnight. In the meantime, attention has to be paid on production and job creation. We cannot throttle our industry. There are certain absolutely essential imports. Needless to say, those will keep going,” official sources said.

Sources said that both the government and the industry are in the process of identifying products that can be domestically manufactured in the medium term. There are certain chemicals, automotive components, handicrafts, cosmetics, agriculture items and certain consumer electronics, which can be manufactured domestically in the short to medium term. The government is doing all it can to raise the capacity of domestic industries.

However, there are certain other imports in the automobile and the pharmaceutical sectors which cannot be done away within the short to medium term. Their domestic production at the moment may not be that cost-effective.

The six-crore strong traders’ body CAIT has been at the forefront of such a demand and has launched a campaign to celebrate Indian Diwali this year with a total absence of Chinese goods.

“Ease of doing business, capital availability at lower rates and globally competitive logistics and energy costs are some of the prerequisites that the government should look into to ensure the growth of the domestic auto component industry,” according to Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta.

Maruti Suzuki Chairman R C Bhargava said, “People who are boycotting Chinese goods have to remember that in some cases it may lead to their being asked to pay more for the same product."

Meanwhile, domestic rating agency Acuite Ratings & Research has analysed the current import portfolio from China and found 40 sub-sectors have the potential to lower their import dependency on China. These sectors contribute to $33.6 billion worth of imports from China and about 25% of these imports can be substituted by local manufacturing without any significant additional investments.

Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled. 

Brent, the international crude marker, slipped to $18.10, indicating that markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging under $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.

Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to smother the outbreak slashing demand for crude by as much as a third.

Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday. Analysts at Citi warned that “if global storage worsens more quickly, Brent could chase WTI down to the bottom”.

The collapse in the May WTI contract was partly a technical product of the fact that it expires on Tuesday, meaning trading volumes were low and making the contract for June delivery more noteworthy, analysts said. That contract held above $20 a barrel on Monday but slid as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than a blip and that the entire global oil market faced challenges.

Goldman Sachs analysts said the June contact was likely to face downward pressure in the coming weeks, pointing to the “still unresolved market surplus”.

“As storage becomes saturated, price volatility will remain exceptionally high in coming weeks,” they said. “But with ultimately a finite amount of storage left to fill, production will soon need to fall sizeably to bring the market into balance, finally setting the stage for higher prices once demand gradually recovers.”

Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.

“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.

European equities traded lower, partly dragged down by weaker energy stocks. The continent-wide Stoxx 600 was down 1.9 per cent, with its oil and gas sub-index dropping 3.3 per cent. In London the FTSE shed 1.7 per cent, while Frankfurt’s Dax slid 2.3 per cent. 

Equities were also broadly lower in Asia, with futures tipping US stocks to fall 1 per cent when trading in New York begins later.

On Wall Street overnight, the S&P 500 closed down 1.8 per cent, partly because of weakness in energy shares, but also due to increased pessimism over the time it will take for countries to emerge from lockdowns.

In fixed income, the yield on the 10-year US Treasury fell 0.03 percentage points to 0.585 per cent as investors retreated to the safety of the debt.