|

And it was indeed a big surprise, and a happy one, to find this week that the Pillay R Group has begun selling Nido milk at a much cheaper price than was published by Natcof on TV.

Nido imported by Pillay R Group is now less than half the price of that being sold at the Sri Navasakthi Vinayagar Store (formerly Quincy Super).

Natcof showed that the Sri Navasakthi Vinayagar Store was selling a 900g tin of Nido Instant Full Cream Milk Powder for R183. In yesterday’s Seychelles Nation, the Pillay R Group announced it is selling the same weight for R89.50. That is a difference of R93.50. And that is huge.

Yesterday the Sri Navasakthi Vinayagar Store was still selling the 900g tin of Nido for R183.
 
The question begging an answer is how come the Pillay R Group is able to sell Nido at R89.50 while the same product is more than double the price in other outlets such as the Sri Nivasakthi Vinayagar Store?
It was a case for some investigative journalism to find out why the Pillay R Group is selling at a very much cheaper price.

A spokesman explained that the Pillay R Group is the agent that is importing the Nido, and it is definitely an excellent initiative that the group has been able to identify a cheaper source for this powdered milk.
 
Appreciation of the rupee, cost at supply source and competition are among the factors that have brought the price of Nido milk down. Consumers can now choose to buy it at either R89.50 or R183.
The investigation is not complete.

Rich nations’ economies stabilised – OECD

The Organisation for Economic Cooperation and Development (OECD) has said the economies of its members stabilised in the last quarter.

The gross domestic product in the 30 most industrialised nations was flat in the three months to June, after shrinking 2.1% in the previous quarter.
 
Japan, France and Germany have recently emerged from recession, raising hopes that the global economy is recovering.

But the OECD said its total economy is 4.6% smaller than it was last year.
While Japan, France and Germany are some of the economies to show growth in the second quarter, countries such as the US and UK are still shrinking.

The US contracted 1% from the first quarter, while the UK shrank by 0.8% in the three months to June.

The OECD said in June that the pace of the global downturn had moderated after the sharp drop in the six months to March, but that it still expected world output to shrink by 2.2% this year.

South African economy falls again

The South African economy contracted for the third quarter in succession between April and June, the latest official figures have shown.

It shrank at an annualised rate of 3% during the second quarter of 2009, a less severe decline than the 6.4% contraction from January to March.
 
Manufacturing was the worst-performing sector, seeing output slide 11%.
The central bank cut interest rates last week to help the economy and the government has a stimulus plan.

The South African Reserve Bank trimmed its main lending rate from 7.5% to 7% on August 14, its sixth cut since December of last year, when rates were at 12%.

Meanwhile, President Jacob Zuma’s administration is spending $98 billion over the next three years on infrastructure projects.
 
With South Africa continuing to experience its first recession in 17 years, retail sales fell 4.5% between April and July.

“People had more disposable income after interest rates went down, but either it is that people are reluctant to spend or are servicing the debt they already have,” said Kedibone Mokone, acting manager of national accounts at government agency Statistics South Africa.

Commodity briefs from around the world

• Indonesia to stock rice against El Nino weather threat

• Philippines eye climb in 2009 rice and maize output

• India warns of bleak prospects for 2009-10 sugar output 

• Thailand sets sights on record sugar exports

• Bangladesh fixes sugar prices to keep market stable

• Kenyan tea prices increase ahead of Ramadan

• Burundi tea prices rise in July as drought cuts production

• Decline in Ugandan coffee exports and earnings for July

• Indian prime minister says country faces drought threat

Crude oil prices

As at 20/08/09

Nymex Crude Future   72.28 dollars per barrel
Dated Brent Spot         73.46 dollars per barrel