Emerald island: Pristine beaches, hill stations and reasonable prices make Sri Lanka a hot budget destination

The US dollar has been gaining on the Indian rupee since April, and it has been years since you heard stories of amazing-deal holidays in crisis-struck Asian countries. That's no reason to keep your suitcases all packed at home, though. The bargains may no longer be amazing, but currencies being what they are-scraps of paper that go up and down against one another on account of economic factors-there are still several overseas destinations that could stretch your rupee to satisfaction.

As it turns out, most of these happen to be in our neighbourhood. As Manoj Pant, Professor (International Studies), Jawaharlal Nehru University, explains, it's all about relative demand and supply. The currencies of these countries happen to be in lower demand, relatively speaking, than the Indian rupee. By choosing to holiday there, you rush for a currency others are rushing away from, and thus get a good price for everything you buy in that currency. So, whisk out your planner and start making those calls.

Sri Lanka (Re 1=2.3 Sri Lanka Rupees)

If clear blue water makes your heart skip a beat, head straight for the emerald island Sri Lanka. This country's rupee has weakened by some 3 per cent over the past six months vis-à-vis the Indian currency, and offers beaches and hill stations to go with a fine tapestry of culture, customs and surprisingly instructive economic ideas. It's best if you know your itinerary beforehand, though. "At least 60 per cent of places should be pre-decided by tourists before leaving for their trips," advises Rajiv Duggal, Senior Vice President, SOTC. After touching down in Colombo, head for Kandy. Built around a lake amidst hills, it is worth a visit. As also Dalada Maligawa, claimed to house relics of the Buddha. Another must is the rock art gallery at Sigiriya Fort. The seafood is terrific and the prices reasonable.

Nepal unlimited: No visa, low price plus the Everest view

Nepal (Re 1=1.6 Nepal Rupees)

It's not just casinos. Nepal is good for mountain climbing and bungee jumping too, apart from a descending local currency. "Nepal is unlimited and fabulous for a budget traveller," says Duggal. Also, there are no visa restrictions for Indian citizens. Places to visit? Try Kashtamandap, the 'House of Wood' built of a single tree, and Pashupatinath, if temples attract you. For trekkers, the hill lake resort of Phewa serves as a good base camp. For a good view of the Everest, go to Nagarkot. Wildlife is an attraction too. On the whole, prices are so low that you might want to do an entire fortnight here. And if the Maoist insurgency makes you hesitant, Ankur Bhatia, Managing Director, Amadeus India, has a point: "Remember, there has been no damage to human life ever."

Vietnam (Re 1=341 Dong)

Serene Vietnam: Paradise for veg foodies and bird watchers

For a country spoken of mostly in a war context, Vietnam is surprisingly serene to visit, whether it's the mountains in the north or deltas in the east and south. A bird's-eye view would be a painter's delight: brilliant green paddy fields tended by women in conical hats. "The variety of food in Vietnam is a vegetarian's delight," avers Bhatia. Adds Duggal, "Amazing birds fly into the country, which has made bird-watching a very popular recreation here." Hanoi and the ancient capital Hue both boast interesting architecture, while the Phong Nha-Ke Bang National Park offers some natural limestone formations, grottoes and caves.

Indonesia (Re 1=199 Rupiahs)

In the past six months, it's Indonesia's rupiah that has registered one of the steepest falls versus the rupee. That makes this archipelago of some 17,508 islands (just 6,000 inhabited) all the more attractive as a holiday proposition. Few places in the world can offer such breathtaking diversity of just about everything natural and man-made.

Beach-happy Bali, off the beaten track, remains a major draw, once you're done with the bigger islands. The coral Banda Islands are also worth exploring, as also Flores, complete with thick forests and active volcanoes. Another don't-miss: the matrilineal society and fiery Padang cuisine of Bukittinggi, Sumatra.

Turkey (Re 1=32,800 Liras)

Now here's a destination that enters the list for the queerest of reasons. An internal tussle involving the law's jurisdiction over carnal relations has just sent the Turkish lira tumbling. This is not a measure of how dissuaded people are from holidaying in Istanbul-with all its marvellous museums, cafes and architectural sights. Rather, the currency fall speaks of the EU's ambivalence towards Turkey as a prospective member; even hints of divergence from mainstream Europe tend to reduce the country's membership chances (and thus projected economic prospects). What it means for you, the currency traveller, however, is a splendid opportunity to visit a charming place that defies easy characterisation.

Strange Opportunities
Ever thought of making a fortune in-hold your breath-guar?

By Shilpa Nayak

An 80 per cent return on investment in six months-and on a commodity you're not sure you knew existed. Welcome to the joys of trading on India's new commodity exchanges. Apart from getting people accustomed to things that seem fictitious, it is making some people a lot of money.

Guar, though, has been found to exist (Cyamopsis tetragonoloba; see visual proof, above). While you were busy watching the Sensex, these 'cluster beans' were busy giving nourishment to animals as well as humans. Guar thrives in Rajasthan, and the Jodhpur region alone accounts for 80 per cent of India's and 40 per cent of the world's crop.

The point of interest, however, is that its price has nearly doubled in six months, scaling a neat Rs 1,929 per quintal on September 9, 2004, as quoted on ncdex, India's largest commodity exchange. When guar trading began in April this year, the traded turnover was barely a crore. But by July, guar's sowing season, word of a bad monsoon had hit the NCDEX, and by September 9, turnover had shot up to Rs 424 crore, surpassing some of India's most vigorously traded stocks. "Till now, due to absence of formal trading platforms, the market for commodities like guar was unofficial," says Madan Sabnavis, Chief Economist, ncdex, "commodity exchanges gave an outlet for trading, and the volumes built up due to interest in the commodity."

Another Tulip?

Given that guar's thirst for water is more presumption than fact (it's a Jodhpur crop, remember), it was entirely reasonable for investors to wonder if this was one big overblown tulip waiting to pop. Well, was it?

No, says NCDEX, vehemently. The exchange has inbuilt safety mechanisms, including margin adjustments to tame volatility and monitors for circular trading. Moreover, the year's crop is actually headed for disaster-projected at just half the previous year's figure. Supply and demand are set to go badly out of whack. "Guar has always been a speculative commodity," says Sandeep Jain, Director, Trade Swift Combex, member of NCDEX and MCX, "and the price volatility that followed was pure economics." Also, note that the current price is not much lower than the recent peak.

It also means that it's too late to catch the guar wave. "Once the Guar harvest is through in October or November," says Sabnavis, "the interest in Guar is likely to taper down till the next sowing season. Till then, some other commodity will surface whose sowing season would be around that time."

Which one? Chirag Shah, Vice President, Refco Commodities, which deals in bullion and agri commodities, has some advice: invest in crops that have a wider geographical spread, and which are not specialised in nature.