Economy watch

Wheat

status: The 2007-08 rabi crop is estimated to have yielded 76.78 million tonnes of wheat.

Impact: The handsome rabi crop and the all-time high procurement, which is likely to be over 22 million tonnes (breaching the earlier record of 20.6 million tonnes in 2001-02), means the Centre will not have to import expensive wheat this year like it did last year.

This augurs well for the PDS and is expected to temper the price of this important staple.








Gold prices

Status: $902 on June 6, 2008 on NYMEX.

Impact: High gold prices have led to a 54 per cent decline in gold imports into India. Imports fell to 32 tonnes in May, compared to 69 tonnes in the same month last year. If prices continue to rule high, this trend is expected to continue.













—Compiled by Kapil Bajaj