Delhi Police busts fake Indian spice manufacturing unit, recovers 15 tonnes of adulterated spices
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The Cyber Cell, Crime Branch received information that some manufacturers in North East Delhi are involved in manufacturing, selling adulterated Indian spices in Delhi-NCR under various brands.
Amid the dark clouds over Indian spice manufacturers by regulators in other countries, the Delhi Police on Sunday May 5, busted fake Indian spice manufacturing units in Karawal Nagar in Delhi.
Two manufacturers and one supplier of spurious Indian spices were arrested. The Delhi Police also seized 2 manufacturing units, machines, tempo and other instruments/articles involved in the crime. Total 15 tonnes of adulterated Indian spices and raw material was also recovered.
The accused were supplying in Delhi/NCR to earn huge profits as per initial investigation.
The Cyber Cell, Crime Branch received information that some manufacturers in North East Delhi are involved in manufacturing, selling adulterated Indian spices in Delhi-NCR under various brands.
A team was deployed on May 1st in Karawal Nagar, Delhi. The team conducted the raid and arrested Dilip Singh who was operating the processing unit and was making adulterated turmeric by using non-edible banned untidy items and acids, oils. Another accused Khurseed Malik was also arrested.
In the inspection, adulterated spices like Haldi powder, Garam Masala powder, Amchoor powder and other raw items i.e. rotten rice, rotten coconuts, Eucalyptus leaves, rotten berries, wood dust, citric acid, chokar, dry chilli heads, colour chemicals, etc. were seized. The raw material used in manufacturing by them, was not edible.
Another processing unit running at Kali Khata Road, Karawal Nagar, Delhi was also raided. Another accused Sarfaraz was arrested who was also involved in manufacturing adulterated spices.
The police have registered a case under appropriate sections of law registered at Crime Branch, Delhi. Team of Cyber Cell, Crime Branch, Delhi has been directed to keep vigil over the manufacturer and suppliers of adulterated edible spices. Further investigation is in progress.
The first accused Dilip Singh was initially manufacturing adulterated spices since 2021 initially with a different partner. To earn profits, he got an idea to make adulterated spices by using untidy material and further sold into different markets like Sadar Bazar, Khari Bawli, Pul Mithaii and to the vendors of weekly bazaar. Since November 2023, he started running the processing unit alone.
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FSSAI dismisses reports of high pesticide residues in herbs and spices as ‘false and malicious’
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The government, in a statement on May 5, said India has one of the most stringent standards of Maximum Residue Limits (MRLs) in the world, rejecting reports claiming that the FSSAI allows 10 times more pesticide residue in herbs and spices.
After multiple complaints of alleged adulteration, the Food Safety and Standards Authority of India (FSSAI) on Sunday, May 5, claimed that India has one of the most stringent norms for pesticide residues in food items.
FSSAI, in a statement, rejected social media reports suggesting that the food regulator allows high level of residues in spices and herbs.
“Some media reports are claiming that the FSSAI allows 10 times more pesticide residue in herbs and spices. Such reports are false and malicious,” the Ministry stated.
The government claimed that India has one of the most stringent standards of Maximum Residue Limits (MRLs) in the world. “MRLs of pesticides are fixed differently for different food commodities based on their risk assessments.”
The clarification comes amid a ban imposed by the Hong Kong food regulator on certain spice mixes of two leading Indian brands–MDH and Everest–on alleged presence of pesticide ethylene oxide in their samples.
Union Health Ministry, which is the nodal ministry for FSSAI, clarified that the maximum residue limits are different for various food products based on risk assessment.
Pesticides are regulated by the Ministry of Agriculture through Central Insecticide Board and Registration Committee (CIB & RC) constituted under Insecticide Act, 1968.
The CIB & RC regulate the manufacturing, import, transport, and storage of pesticides, and accordingly, the pesticides are registered, banned, or restricted by CIB & RC.
Explaining the process of fixing pesticides residue limits, the health ministry said the FSSAI’s scientific panel on pesticides residues examines the data received through CIB & RC and recommends the MRLs after performing risk assessment.
The dietary consumption of Indian population and health concerns in respect of all age groups are taken into account.
“Total pesticides registered by CIB & RC in India are more than 295 out of which 139 pesticides are registered for use in spices,” the ministry stated.
Codex (Codex Alimentarius Commission)–an intergovernmental organisation that develops international food standards, guidelines, and codes of practice–has adopted total 243 pesticides out of which 75 pesticides are applicable for spices.
The ministry further said that a pesticide is registered on many food commodities with different MRLs based on risk assessment data.
For instance, the use of the insecticide Monocrotophos is allowed on many crops with different MRLs such as rice at 0.03 mg/kg, citrus fruits at 0.2 mg/kg, coffee beans at 0.1 mg/kg. cardamom at 0.5 mg/kg, and chilli at 0.2 mg/kg.
“The MRL of 0.01 mg/kg was applicable in case of pesticides for which MRLs have not been fixed. This limit was increased to 0.1 mg/kg only in cases of spices and is applicable only for those pesticides which are not registered in India by CIB & RC,” per the statement.
This was recommended by Scientific Panel on Pesticide Residues after considering the adoption of MRLs in the range 0.1 mg/kg and above by Codex Alimantarius Commission on Pesticide Residues on spices during 2021-23 in a phased manner for various spices in the world.
MRLs fixed by Codex for spices and culinary herbs ranges from 0.1 to 80 mg/kg.
The ministry further explained that one pesticide or insecticide is used in more than 10 crops with different MRLs.
For example, Flubendiamide is used in brinjal with an MRL of 0.1 whereas for Bengal Gram the MRL is 1.0 mg/kg, for Cabbage 4 mg/kg, for Tomato 2 mg/kg and for Tea it is 50 mg/kg.
Similarly, Monocrotophos is used for food grains with MRLs at 0.03 mg/kg, for citrus fruits 0.2 mg/kg, for dried chilli it is 2 mg/kg and for Cardamom 0.5 mg/kg.
The MRLs fixed by Codex for Myclobutanil used for chilli is 20 mg/kg whereas limit set by FSSAI is 2mg/kg.
For Spiromesifen, used for chilli, Codex limit is 5 mg/kg, whereas FSSAI limit is 1 mg/kg.
Similarly, Codex standards for Metalaxyl and Metalaxyl-M used for black pepper is 2mg/kg whereas limit set by FSSAI is 0.5 mg/kg.
The new Codex MRLs for Dithiocarbamates, Phorate, Triazophos and Profenophos for Fennel is 0.1 mg/kg.
“FSSAI aligns with the updated standards of MRLs set by Codex Alimentarius Commission (and International Food Safety and Quality Standard setting body created by WHO and FAO of UN) and the European Union,” the statement said.
The MRLs are dynamic in nature and regularly revised based on the scientific data, it added.
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NADA suspends wrestler Bajrang Punia for not giving dope sample
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The 30-year-old wrestler in a Olympic medalist as he won bronze medal at the 2020 Tokyo Olympics. Punia is also the recipient of the Padma Shri award, India’s fourth-highest civilian award.
India’s anti-doping agency, the National Anti Doping Agency (NADA) has suspended wrestler Bajarang Punia for failing to give dope samples. According to news agency ANI, Punia has been suspended indefinitely. The suspension will affect Punia’s chances to qualify for the Paris Olympics scheduled to happen later this year.
The 30-year-old wrestler in a Olympic medalist as he won bronze medal at the 2020 Tokyo Olympics. Punia is also the recipient of the Padma Shri award, India’s fourth-highest civilian award.
Punia was also one of the many wrestlers who led the protest against former Wresting Federation of India chief Brij Bhushan Sharan Singh on the grounds of sexual harassment against female wrestlers.
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Over 57 killed, 373 missing as floods devastate southern Brazil
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The recent flooding in Brazil are part of a broader pattern of extreme weather occurrences worldwide. Recently, Dubai witnessed record-breaking rainfall has disrupted daily life, while Southeast Asia grapples with dwindling reservoirs amid scorching temperatures.
Unprecedented rains and flooding in the southern state of Rio Grande do Sul in Brazil have left a trail of devastation, with at least 57 fatalities and 373 individuals missing. According to civil defense reports released on May 4, 74 others have been injured in the catastrophic floods that have impacted 281 municipalities.
In response to the crisis, local authorities have declared a state of calamity in areas where over 67,000 people have been affected. The displacement of nearly 10,000 individuals has necessitated the opening of more than 4,500 temporary shelters, as confirmed by civil defense statements.
Concerns about the integrity of dams under the strain of unprecedented water levels have prompted vigilant monitoring, though officials have assured the public that there’s no immediate risk of collapse. Brazilian President Luiz Inácio Lula da Silva convened with regional leaders overseeing relief efforts on Thursday to coordinate responses.
Locals form human chain to help aid works rescue stranded people
Governor Eduardo Leite characterized the situation as “a historic disaster,” emphasizing the urgent need for rescue operations despite significant material losses. Distressing images depict floodwaters engulfing entire neighborhoods, with rescue teams utilizing inflatable rafts to evacuate stranded residents and their pets.
Saturday morning brought heightened alarm as water levels in Guaíba Lake surged five meters due to relentless rainfall, posing a threat to Porto Alegre, the state capital.
The recent events in Brazil are part of a broader pattern of extreme weather occurrences worldwide. In Dubai, record-breaking rainfall has disrupted daily life, while Southeast Asia grapples with dwindling reservoirs amid scorching temperatures. In Kenya, floods and heavy rainfall have claimed nearly 200 lives and ravaged communities along swollen riverbanks.
These incidents underscore the escalating impact of climate change, with last year marking the hottest on record. Global temperatures have surged 1.2 degrees Celsius beyond pre-industrial levels, fueling a rise in high-intensity hurricanes and prolonged heatwaves. Scientists warn of a heightened risk of storms stalling over affected regions, leading to catastrophic flooding and prolonged devastation in their aftermath.
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All you need to know about the Sunil Gavaskar vs Virat Kohli war of words involving Star Sports in IPL 2024
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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“All these guys talk about, ‘oh we don’t care about outside noise’. Then why are you replying to any outside noise or whatever it is. We all played a bit of cricket, not a lot of cricket. We don’t have agendas. We speak about what we see. We don’t necessarily have any likes and dislikes. Even if we have likes and dislikes, we actually speak on what is happening,” said Gavaskar about Kohli.
Former Indian captain Sunil Gavaskar has hit out at Virat Kohli for calling out commentators over criticising his strike rate in the Indian Premier League (IPL) 2024. Kohli had lashed out at people talking about his scoring rate after Royal Challengers Bengaluru (RCB) cruised to a win against the Gujarat Titans (GT) in Ahmedabad last week. Apparently, official broadcaster Star Sports played that clip multiple times, much to the dismay of Gavaskar.
“All these guys talk about, ‘oh we don’t care about outside noise’. Then why are you replying to any outside noise or whatever it is. We all played a bit of cricket, not a lot of cricket. We don’t have agendas. We speak about what we see. We don’t necessarily have any likes and dislikes. Even if we have likes and dislikes, we actually speak on what is happening,” said Gavaskar.
He added, “I hope Star Sports realises that when that clip is shown, questioning the critics, the critics are your own commentators. For you to show the person belittling your own commentators, I’m not sure that’s a great thing. You need to realise you have shown it enough times, everybody’s got the message. I would be very disappointed if you show it once more.”
🚨 Sunil Gavaskar hits out at Star Sports on Star Sports.
“All these guys talk about, ‘we don’t care about outside noise.’ Then why are you replying to any outside noise or whatever it is. We all played a bit of cricket, not a lot of cricket. We don’t have agendas. We speak… pic.twitter.com/LplT7b7Kf5
RCB chased down 201 in 16 overs against the home team previous week, with Kohli remaining unbeaten till the end, thanks to his 70-run knock off 44 deliveries. The opener struck six boundaries and three maximums to maintain a strike rate of 159.09 to see his side home in this crunch encounter against the misfiring Titans.
“I think all the people who put up strike rates and about me not playing spin well, are the ones who love talking about this stuff. For me, it’s about winning the game for the team. There’s a reason you have done it for 15 years, day in and day out,” Kohli said in the post-match presentation.
“I am not sure if you have not been in that situation yourself, to sit and speak about the game from the box, I don’t think it’s the same thing, so for me it’s just about doing my job, people can talk about ideas for the game, but for me it’s kind of a muscle memory now,” he added.
Kohli has now scored 542 runs in 11 IPL matches this season. He has maintained an average of 67.75, with a strike rate of 148.09. Kohli has notched four half-centuries and a solitary ton, hitting 48 boundaries and 24 sixes, leading the Orange Cap race at the moment.
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It’s time to head out on your annual summer vacation, right? This is the time when families keep aside their normal routines and look to spend time together, but as the mercury rises in metro cities, it’s increasingly getting difficult to spot the destination that not has a plesant weather, but has ample of options for the entire family to bond together. Whether you are seeking adventure or relaxation, the CNBC-TV18 Travel Desk has handpicked ssome these cool-climate destinations in southern India that offer the perfect escape from the summer heat. So, pack your bags and embark on a refreshing journey to explore the natural beauty and tranquility of these enchanting locales. Read on to know more about the best summer destinations in South India. (Image: shutterstock)No 1. Ooty, Tamil Nadu | Known as the “Queen of Hill Stations,” Ooty is one of the best places to visit in the South as the maximum temperature during this season does not cross 23 Degree Celsius here. The lush greenery, tranquil lakes and pleasant weather make it a popular choice for summer vacations. Among the top tourist attractions here are Ooty Lake, Rose Garden, Nilgiri Mountain Railway, Kalhatti Falls, Tiger Hills, Emerald Lake, Doddabetta Peak, and many more. (Image: Shutterstock)No 2. Coorg, Karnataka | Nestled amid coffee plantations and mist-covered hills, Coorg offers a tranquil retreat with its cool climate and scenic beauty. This charming hill station in Karnataka is famous for exceptional coffee and spice plantations. People often call it the ‘Scotland of the East’. The top tourist attractions here include Nisargadhama, Abbey Falls, Naharhole National Park, Raja’s Seat, Iruppu Falls, etc. (Image: Shutterstock)No 3. Munnar, Kerala | Snuggled in the vast stretches of the Western Ghats, Munnar is renowned for its sprawling tea estates. The famous hill station attracts tourists through its scenic waterfalls, cool climate, and breathtaking vistas, making it an ideal destination for nature lovers. The top places to visit are Eravikulum National Park, Echo Point, Tata Tea Museum, Tea Garden Photo Point, Mattupetty Dam, etc. (Image: Shutterstock)No 4. Kodaikanal, Tamil Nadu | Perched atop the Palani Hills, Kodaikanal means the ‘Gift of the Forest’. It is situated in Dindigul district and the cool temperature, verdant valleys, waterfalls, and shimmering lakes provide the perfect setting for a rejuvenating holiday. Must visit places here are Pillar Rocks, Coaker’s Walk, Kodai Lake, Thalaiyar Falls, Devil’s Kitchen, Dolphin’s Nose, Pillar Rocks, etc. (Image: Shutterstock)No 5. Wayanad, Kerala | With its lush forests, cascading waterfalls, and pleasant climate, Wayanad is among the several choices made by the tourists. It lies in the stretches of Western Ghats that offers a serene escape from the summer heat. People come here to explore places like Wayanad Wildlife Sanctuary, Edakkal Caves, Tiger Reserve, Nagarhole National Park, Embukuthi Hills and more.No 6. Yercaud, Tamil Nadu | Yercaud is another charming destination to visit during the summer season. It is known as the land of seven forests. Yercaud is surrounded by verdant forests and coffee plantations and has cool climate and scenic landscapes. The destination attracts tourists to explore Botanical Garden, Yercaud Lake, Shevaroy Temple, Pagoda Point, Kiliyur Falls, etc.No 7. Coonoor, Tamil Nadu | A lesser-known gem in the Nilgiri Hills, Coonoor’s cool weather, tea gardens, and colonial charm offer a peaceful retreat in the summers. It is one of the top places to visit in the South. The best tourist attractions here include Droog Fort, St. John Church, Ketty and Hidden Valley. (Image: Shutterstock)No 8. Kanyakumari, Tamil Nadu | Kanyakumari, a picturesque coastal town in Tamil Nadu, is bordered by the Indian, Arabian, and Bay of Bengal seas. Despite being the meeting point of three seas, the waters remain distinct in colours of sea green, deep blue, and turquoise blue. Visitors can enjoy scenic views of paddy fields and coconut trees. Key attractions include Kanyakumari Beach, Thirparappu Falls, Kumari Amman Temple, and Vivekananda Rock Memorial. (Image: Shutterstock)No 9. Valparai, Tamil Nadu | Tucked away in the Anaimalai Hills, Valparai’s cool climate, dense forests, and abundance of wildlife make it an enchanting destination and a must visit place in the region. It is situated approximately 100 kilometers from Coimbatore. There are a few famous dams to visit here like Valparai-Sholayar Dam, Aliyar Dam and Nirar Dam. (Image: shutterstock)No 10. Agumbe, Karnataka | Known as the ‘Cherrapunji of the South’ and situated in Thirthahalli taluka of Shivamogga district, the misty forests, gushing waterfalls, and cool climate make it a haven for nature enthusiasts. The top tourist attractions here are Agumbe Sunset View Point, Agumbe Ghat and more. (Image: shutterstock)
Xenotransplantation — here’s how a gene-edited pig cures humans
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Since the demand for organ transplantation is growing and thousands of patients still awaiting donors and matching organs, animal organs can help reduce the shortage. However, it involves many risks, including genetic compatibility issues, body rejection, infection and ethical issues, among others. While the initial studies show new rays of hope, more advanced studies and large clinical trials are required to prove the efficacy and viability, writes Vanita Srivastava.
The early success of the transplant of a pig kidney into a human being marks a major milestone in the quest to lessen the critical shortages of human kidneys for patients with kidney failure. This has raised hopes for the researchers that large clinical trials involving pig organs could be a reality. It could also bring the process of xenotransplantation which involves use of animal organs into the clinic.
The need for transplantation of organs is growing. While some scientists feel that animal organs can help in reducing the demand, there is a critical component which discusses on how this could lead to dangerous infections.
Transplanting a whole organ from a pig has been difficult because of genetic differences that causes the human body to reject them. There are also concerns on being infected by a latent virus inside the pig. This virus could then spread to other humans.
These kind of efforts will soon lead to a surge in small clinical trials of animal for human transplantation in extremely sick people. If successful, this could help many who have been waiting for organ transplants.
What is Xenotransplantation
Xenotransplantation is a process that involves the transplantation, implantation or infusion into a human recipient from a non-human animal source. Despite several potential benefits, there is a risk of an infection of the recipients. This process called as cross species organ transplantation is still in a nascent stage. There are no human clinical trials that have been approved by the US Food and Drug Administration.
Transplants from animals have a higher risk because animals have a different genetic code. To lower this risk, researchers make small changes to the animal’s DNA to match better with the human genes. It is very important to find the right genetic code cells. The genes are edited so that the cells do not produce a particular sugar that is foreign to the human body and triggers immediate organ rejection. The immune systems of humans were reacting mainly to one sugar molecule on the surfaces of pig cells, called α-Gal.
Xenotransplantation can just be a short-term solution that will reduce the organ shortage in the next five to seven years.
The Risks
There are ethical issues and many animal supportive groups strongly feel that the animals should not be genetically modified. A spokesperson for Animal Aid, a UK-based animal rights group, had told the BBC it was opposed to modifying animal genes in any circumstances. “Animals have a right to live their lives, without being genetically manipulated with all the pain and trauma this entails, only to be killed and their organs harvested,” the organisation said. The other potential risks are that of organ rejection and virus infection which could be fatal.
The Trajectory
Lisa Pisano, a 54-year-old woman from New Jersey last month became the second living person to receive a transplant of a gene-edited pig kidney. Doctors also implanted a mechanical heart pump, making Pisano the first person to receive both a heart pump and an organ transplant, according to a statement from NYU Langone Health, where the surgery was performed.
In March this year, a patient at the Massachusetts General Hospital received the first pig kidney transplant.
The NYU team has earlier experimented with transplanting gene edited pig organs into brain dead patients. They have also twice transplanted pig hearts into deceased human patients.
In 1984, the heart of a young baboon was transplanted into an infant born with a fatal heart defect. The infant lived for three weeks but died because of heart failure that was caused by the organ rejection. Before this there were other experimental non human heart transplants, the earliest in 1964 using a chimpanzee heart.
The animal to human transplant needs a lot more collaboration, scientific and clinical trials before they can actually be categorised as a medical success.
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Self-belief and never-say-die attitude are Mohammed Siraj’s real strengths, says Sunil Gavaskar
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Mohammed Siraj’s self belief and never-say-die attitude are his real strengths, said batting legend Sunil Gavaskar after the pacer set up Royal Challengers Bengaluru’s fourwicket win over Gujarat Titans in the Indian Premier League. Siraj’s two-wicket burst in the powerplay to remove Shubman Gill and Wriddhiman Saha played a crucial role as GT could manage just 147 allout in 19.3 overs on Saturday.
Mohammed Siraj’s self-belief and never-say-die attitude are his real strengths, said batting legend Sunil Gavaskar after the pacer set up Royal Challengers Bengaluru’s four-wicket win over Gujarat Titans in the Indian Premier League here. Siraj’s two-wicket burst in the powerplay to remove Shubman Gill and Wriddhiman Saha played a crucial role as GT could manage just 147 all-out in 19.3 overs on Saturday.
“Every time you see Mohammed Siraj, you know that he’s going to give his heart out. Remember the time when his father passed away when he was in Australia. He carried on,” Gavaskar said on Star Sports Cricket Live. “A lot of people would want to go back because your parents are so dear to you. But I think he realised that playing for India was important. Also, he was not established at that stage. An established player would 100 per cent have gone back.
“And remember how spectacularly he bowled in that Gabba Test match. Getting somebody like Steve Smith out when he was on 55… so this is the real strength of Mohammed Siraj, the self-belief and the never-say-die attitude on the field.” Chasing a modest 148, Faf du Plessis (64) and Virat Kohli (42) put on 92 runs inside the powerplay to give RCB a blistering start. RCB, however, slipped from 92/0 to 117/6 before romping home in 13.4 overs. “Extraordinary stuff during the power play when RCB was batting. It was just game on, and then all of a sudden things changed. Were they trying to counter the net run rate solution? And if that is the case, then well played to them because they needed to go hard,” former Australian batter Matthew Hayden said. “So they lost those three wickets to Joshua Little straight away in that middle stage of the match. And then they were able to consolidate because, simply as you heard Faf at the presentation say, anything short of 180, even 190 on this high-scoring venue, was never going to be enough runs.” Former England cricketer and coach Paul Collingwood also lauded the “aggressive approach” of the RCB batters.
The intensity displayed by RCB with the ball was commendable. Even while chasing a modest total, seeing Virat Kohli stepping out of his crease and effortlessly flicking a delivery for six on just the second ball indicated their aggressive intent. This signals danger for their opponents. “Despite their position near the bottom of the table, RCB didn’t hold back. They showed clarity, bravery, and aggression, particularly in the middle order. Although they lost wickets, I commend their aggressive approach,” he said.
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Bottomline | The risk of rising debt for USD and beyond
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The dollar isn’t going out of fashion anytime soon, but that doesn’t mean rising US debt won’t hurt.
When Elon Musk says anything, people take notice. And when he says that the dollar will be worth nothing if the US doesn’t do anything about its rising debt, the uninitiated are clearly spooked.
To be fair, maybe his expression is possibly a way of calling attention to a matter that requires urgent attention. And it does.
US DEBT WORRIES
But what Musk is saying now, is something others have been saying for a while.
An institution no less than the International Monetary Fund (IMF) at its April briefing said: “Moderate fiscal tightening is expected to resume this year, but significant uncertainty remains. In 2024, a record number of countries, with more than half of the world’s population, are holding elections. Evidence shows that in election years, realised deficits are 0.4 percentage points of GDP higher than budgeted. Looking ahead, global public debt is projected to approach 100% of GDP by the end of the decade. This rise in global public debt is primarily driven by China and the United States, where public debt is now higher and is expected to grow faster than pre-pandemic projections. Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar. It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks.
While modest fiscal tightening is projected over the medium term, it will be insufficient to stabilise public debt in many countries.”
Source: Federal Reserve of IllinoisSource: IMF
The IMF goes on to highlight the deterioration in fiscal position in the US and the need to rein in deficits.
It says: “In 2022, the US cyclically adjusted primary deficit was at 1.9% of GDP. In 2023, it multiplied (by) almost three, to reach 5.6% of GDP. And going forward, the primary deficit in the United States will stay in the range of three-point-something and only comes below three toward the end of our projection period. That leads to a situation where debt is increasing at about two percentage points of GDP per year.
We have emphasised many times that this fiscal policy puts pressure on policy rates. It puts pressure on long-term rates. It affects costs of funding everywhere in the world. And if the stance of policy in the United States is also uncertain, there is also an element of risk, which is reflected in the pricing.
Our view about the United States is that the authorities have a number of options that they can use to put the situation under control. And the way it will be done will be the outcome of the political process in the United States.”
That this is a big issue for the stability of the dollar, the US and global economy and markets is well accepted. Even the Oracle of Omaha, Warren Buffett, at the annual Berkshire meeting made it a point to draw attention to this while calling Fed Chair, Jerome Powell a “very wise man”.
Buffett said: “(Powell) doesn’t control fiscal policy, and every now and then he sends out a disguised plea… because that’s (US deficit) where the trouble will be, if we have it,”
In fact, some argue that the Fed’s trimming of its quantitative tightening was a consequence of the US not reining in its deficits, that need to be funded.
WHAT RISING DEBT CAN SPELL
The rise in US debt has been truly unprecedented with net interest expenses expected to account for 17.6% of federal receipts in 2024.
What’s more, the US Congressional Budget Office (CBO) has projected it to remain at elevated levels.
In its outlook, the CBO says: “Measured in relation to gross domestic product (GDP), the deficit amounts to 5.6% in 2024, grows to 6.1% in 2025, and then shrinks to 5.2% in 2027 and 2028. After 2028, deficits climb as a percentage of GDP, returning to 6.1% in 2034. Since the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007–2009 financial crisis, and the coronavirus pandemic”.
What this spells, is that the US government will need to print more dollars or borrow more from the future to bridge its deficit. That will exert pressure on cost of goods and services, pushing up inflation, and raise borrowing costs. This in-turn will put even more interest servicing pressure on the fisc.
All this will hurt the dollar, which could lose some value. This could spur some shift to safe-haven assets (more on this later), while rising yields on bonds could increase appetite for debt versus other asset classes.
All this can eventually hurt growth and employment, if corrective action is not taken soon.
So, not just the US economy and finances, but even the global markets could be significantly impacted.
CENTRAL BANKS’ RUSH FOR GOLD
In light of the growing dollar risks, the spate of gold buying by prominent central banks acquires added significance.
Already, some are proposing alternative exchange currencies to the greenback to settle trades between themselves.
While this is also an outcome of geopolitical developments, they hold significance for the dominance of the dollar and its value.
World Gold Council in its report for the first quarter of the year says: “With central banks accelerating their gold purchases to above 1,000t per year in 2022 and 2023, the market is finally beginning to appreciate the importance of their contribution to gold demand. Accounting for almost a quarter of annual gold demand in both those years, many have attributed central banks’ ongoing voracious appetite for gold as a key driver of its recent performance in the face of seemingly challenging conditions: namely, higher yields and US dollar strength.
And despite the high bar set in the last two years, the voracious buying has continued into 2024 in the face of the renewed gold price rally. Global official gold reserves rose by a net 290t, the highest Q1 total in our data series back to 2000; 1% higher than the previous Q1 record set in 2023 (286t) and 69% more than the five-year quarterly average (171t).
Not only is the long-standing trend in central bank gold buying firmly intact, it also continues to be dominated by banks from emerging markets. Ten central banks reported increased gold reserves (of a tonne or more) during Q1, all of whom have been active over recent quarters”.
Clearly, the central banks are onto something and building their gold buffers. And this includes our own Reserve Bank of India (RBI).
THE RISK OF A CRISIS
While the dollar may not be going to “nothing” anytime soon, US debt is clearly a trouble spot.
Billionaire investor Leon Cooperman recently told CNBC: “I think we’re heading into a financial crisis in this country (US)”.
And even while even that may be avoided, the risks of some impact on financial markets with the unprecedented growth in US debt levels is quite real and how US policymakers deal with the growing burden following the elections will be a key monitorable.
Valuations in the markets are the other key concern and risk factor for equities.
Warren Buffett speaking at the annual Berkshire Hathaway meeting clearly voted for treasuries and cash: “I don’t mind at all, given current conditions, building our cash position. When I look at the equity markets and the composition of what’s going on in the world, we find cash quite attractive.”
Given the heightened uncertainty, several moving parts (on direction of interest rates, economic policies with several nations going to polls, geopolitical developments and technological disruption with AI and such and the fairly well priced value of equities, this is a time for caution and bottom-up investing. So, stay alert, nimble and diversified.
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IPL betting racket: Chhattisgarh police arrest 26 people from Maharashtra
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The Chhattisgarh police have arrested 26 people from Maharashtra in connection with a racket involved in betting on IPL matches through online applications, including the Mahadev app, a senior police official said on Saturday.
The Chhattisgarh police have arrested 26 people from Maharashtra in connection with a racket involved in betting on IPL matches through online applications, including the Mahadev app, a senior police official said on Saturday.
A team from the anti-crime and cyber unit (ACCU) arrested the accused from two apartments in Pune, Raipur senior superintendent of police Santosh Singh said.
With this, the ACCU has apprehended 34 bookies in connection with a case registered under the Gambling Act and the Chhattisgarh Gambling (Prohibition) Act, 2022 at Ganj police station here, he said.
A joint team of the ACCU and Ganj police had recently raided a flat in Goa, arrested eight people involved in online betting on IPL matches and seized four laptops, a camera, a calculator, 27 mobile phones and other items, he said.
During interrogation, the accused revealed that their associates were involved in betting through the Mahadev app panel in Pune, Singh said.
A team of the ACCU Raipur, which was already in Maharashtra as a part of a probe in another case, conducted a recce of the two apartments in the Bharti Vidyapeeth area of Pune, posing as a vegetable vendor, milk and paper delivery boys for seven days before conducting the raid, he said.
“Twenty-six people indulging in online betting using laptops and mobile phones were arrested from the two flats,” he said.
Of the accused apprehended in Pune, 22 hail from different districts of Chhattisgarh, three were from Madhya Pradesh and one from Uttar Pradesh, he said.
The police have recovered 11 laptops, 98 mobile phones, a calculator and other items worth Rs 25 lakh from the accused, he said.
“The accused have revealed that they were operating through 67 ID panels/branches of the Reddy app, 149 panels of the Mahadev app and 10 panels of laser book. They had purchased each ID panel for Rs 35 lakh to Rs 50 lakh,” the official said.
The seized laptops and mobile phones revealed transactions worth Rs 30 crore, while information about 1,000 players involved in betting was also obtained from mobile phones and bank accounts, he said.
The official said the accused informed that they were associated with Pappu Jethwani, a history-sheeter from the Purani Basti area of Raipur, who is absconding, he said.
The police have also added charges under sections 420 (cheating) and 120B (criminal conspiracy) of the Indian Penal Code and provisions of the Indian Telegraph Act and IT Act in the case, the SP said.
The ACCU Raipur has arrested 57 people in nine cases of betting related to IPL matches so far this year, he added.
Notably, the Mahadev betting app came under scanner in 2022 after the Chhattisgarh police took action against it.
Later, the Enforcement Directorate (ED) launched a probe into the app in a money laundering case last year.
The ED has filed two chargesheets in this case in the Raipur court, including one against the two promoters of the alleged illegal betting and gaming app Sourabh Chandrakar and Ravi Uppal.
The projected proceeds of crime in this case are about Rs 6,000 crore, according to the ED.
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