Monday, 27 January 2014
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Canada, Pakistan Frown At India’S Foodgrain Exports, Farm Subsidies
Rice and wheat exporting countries have raised fresh concerns about India’s food stocks and farm subsidies at the World Trade Organisation (WTO).
This comes less than two months after Western countries promised India that no action would be taken against it for breaching food subsidy levels prescribed by the multilateral body at least for the next four years. The WTO’s Committee on Agriculture (CoA) will take up the questions raised by Canada and Pakistan on India’s wheat and non-Basmati rice exports, existing levels of stocks and the subsidies extended, in a meeting scheduled on January 29, a Commerce Department official told Business Line.
Canada has asked India to give details on the volume of wheat stocks held by the Food Corporation of India (FCI) in the light of recent reports that the country would be exporting up to 20 lakh tonne of wheat due to surplus stocks.
In a representation to the CoA, Canada has also asked India to specify how it calculates the floor price (minimum price) for wheat exports. “Reports (news) indicate that the Government of India has lowered the floor price for wheat to $260 per tonne from $300 per tonne which is lower than the price of the same quality wheat from Canada (and other countries) sold in the range of $270 to $275 per tonne,” the representation said.
India and a number of other developing countries have been granted a reprieve by the WTO against legal action for breaching farm subsidy limits, fixed at 10 per cent of total produce, on items covered under the country’s food security programmes.
This was part of the deal struck at the WTO Ministerial meet in Bali, Indonesia, in December. Members are now supposed to work on a permanent solution to the problem.
India is likely to breach the prescribed subsidy limits once it fully implements its Food Security Programme which offers 5 kg of subsidised foodgrain to about two-thirds of its population. The reprieve, however, would not be applicable if the subsidised foodgrain is released in the export market and affects global prices. India is also obligated to supply all data related to production, pricing, procurement and subsidies demanded by WTO members who would want to ensure that subsidised food was not distorting the global market.
A number of civil society organisations, such as Right to Food Campaign, Action Aid and Third World Network, had earlier warned that the temporary reprieve, called the Peace Clause, would lead to insufficient protection and onerous data sharing obligation.
Pakistan, in its representation to the CoA, has asked India to furnish details of rice exports in the last two years. It has also asked the country to clarify if all non-Basmati rice varieties were eligible for market price support. “India will get some time to reply to the questions,” the official said.
Source:- thehindubusinessline.com
Isuzu Motors To Make India An Export Hub
Isuzu Motors Ltd. will make India one of its hubs to export passenger utility vehicles and pickup trucks to emerging markets in West Asia, Africa and Southeast Asia, a top company official said, as the company began construction of Rs3,000 crore factory in Andhra Pradesh.
The facility is coming up in Sri City, a special economic zone in Chittoor district bordering Tamil Nadu.
The company expects to commence operations at the plant by early 2016 with an initial production capacity of 50,000 units annually. The plant will initially cater to the domestic market. Isuzu will gradually begin exports to emerging markets in the vicinity of the Indian subcontinent as the plant reaches full capacity of 120,000 units a year.
“India is a key region in Isuzu’s global strategy for its emerging markets and as an important manufacturing hub in the future,” Takashi Kikuchi, president and managing director of its Indian subsidiary Isuzu Motors India Pvt. Ltd, said in a statement.
The Indian factory, coming up in 107 acres, will work in collaboration with Isuzu’s existing facility in Thailand, Shigeru Wakabayashi, executive vice-president and deputy managing director of Isuzu Motors India, said. Isuzu’s Thailand plant (with an annual capacity of 300,000 units) is the only facility currently producing light commercial vehicles.
“Our focus is to accelerate our business and establish Isuzu as an important player in the pickup trucks and utility vehicles market in India,” Kikuchi said.
Isuzu, which entered the Indian market in 2012, currently has two vehicles in its portfolio—sports utility vehicle MU-7 and pickup truck D-Max. Japan’s oldest vehicle manufacturer has four dealerships currently in Hyderabad, Chennai, Coimbatore and Cochin, which it will expand to nine by opening showrooms in Bangalore, Visakhapatnam, Tirupati, Madurai and Delhi by March.
It aims to have 60 dealerships by the time its manufacturing facility commences the first phase of production in 2016. It plans to expand showrooms to 180 by 2018.
Source:- livemint.com
India Imposes 5% Export Duty On Iron Ore Pellets
India imposed a 5 per cent duty on exports of iron ore pellets, taking yet another step in conserving the raw material for domestic steelmakers that has slashed its shipments to top market China.
India already levies a 30 per cent tax on exports of iron ore fines and lumps since December 2011. Along with mining and export curbs in key producing states Karnataka and Goa aimed at addressing illegal mining, the tariffs have helped cut India's iron ore exports by around 85 per cent, or 100 million tonnes, over the past two years.
Iron ore pellets had been exempted from any duty previously given negligible exports out of India.
"However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country," the Ministry of Finance said in a statement on Monday.
India's steel producers last month sought a tariff on exports of iron ore pellets to safeguard domestic supplies.
India's iron ore exports to China, most of them in the form of fines, dropped 65 per cent to 11.7 million tonnes last year, Chinese customs data showed.
"I don't think the tax move will have much impact on the Chinese market," said an iron ore trader in Shanghai.
"Chinese buyers are not that interested in Indian pellets because the price is always high so they are sold mostly to the Japanese and Korean markets."
India's efforts to curb iron ore mining and exports via bans and higher taxes have choked the industry so hard that companies which have invested in the sector are throwing in the towel and exiting.
Top trader MMTC's $80 million iron ore export terminal, ready since 2010, has never handled a cargo and now the company wants to spend $16 million to convert the terminal to ship coal
Source:- profit.ndtv.com
India’S Gems And Jewellery Imports Decline 11% In December
India’s imports of gems and jewellery fell over 11% to Rs.15,735 crore in December after a sharp drop in shipments of gold bars and jewellery due to government curbs, the industry body said.
The country had imported gems and jewellery worth Rs.17,692 crore in the same month in 2012, it said. “There has been a significant decline in import of gold bars and jewellery because of restrictions. However, import of diamonds is on the rise,” Gems and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah told PTI.
Import of gold bars fell 45% to Rs.2,111.58 crore last month from Rs.3,816 crore a year earlier, according to GJEPC data. Inward shipments of gold jewellery dropped 25% to Rs.453.95 crore from Rs.606.26 crore.
India, the world’s largest gold consumer, meets its entire demand through imports. The government introduced restrictions on gold imports last year to curb the current account deficit (CAD), which had widened to a record high in 2012-13.
Besides gold bars and jewellery, the country imports diamonds, coloured gemstones, pearls, platinum and synthetic stones among others. Purchases of rough diamonds from overseas rose 6% to Rs.10,230.83 crore. Shipments of cut and polished diamonds were 24% lower at Rs.2,355 crore.
Import of rough coloured gemstones increased 14.34% to Rs.176.63 crore, while shipments of rough synthetic stones rose to Rs.41.84 crore from Rs.18 crore.Import of raw pearls increased to Rs.4.79 crore from Rs.3.16 crore.During the April-December period, gems and jewellery imports declined over 10% to Rs.1,33,980 crore from Rs.1,49,570 crore in the year-ago period, the GJEPC data showed.
The government increased import duty on gold thrice to 10%, banned inward shipments of gold coins and medallions and made it mandatory for importers to export 20% of their shipments before purchasing more of the metal from overseas.
Source:- livemint.com
Govt To Revisit Gold Import Curbs, Says Anand Sharma
We have by and large gone along with the revenue and the Reserve Bank on this matter. We are equally keen to ensure that we remain strong and competitive when it comes to the gems and jewellery sector and exports," he told reporters here on the sidelines of the inauguration of CII Partnership Summit 2014 while replying to a question on Congress president Sonia Gandhi's letter on relaxation of a rule linking imports of gold.
He said, "My officials are presently addressing- the Secretary Commerce and DGFT (Director General of Foreign Trade). On my return to Delhi I will be discussing this issue with the Finance Minister (P Chidambaram). I would like to assure that whatever changes are required in the rule when it comes to the interest of Indian economy and the jewellery industry surely we will look into that very seriously."
"At the best we will revisit this and see that how to have a balance. I can only discuss and make recommendation because these are matters that are dealt directly by the Finance Ministry and the Reserve Bank but definitely there is no question of delaying....this is very much on my table," he added.
Gandhi, without spelling out her own opinion, had last week asked the Commerce Ministry to look into demands made by gems and jewellery exporters for a cut in customs duty on gold and relaxation of a rule linking imports of the metal with exports.
"You are requested to kindly look into the matter (demands of the gems and jewellery industry) for appropriate action," said a letter written by the office of Gandhi to the Ministry of Commerce and Industry.Meanwhile, Chidambaram today said the restrictions will be reviewed by March end.
"I am confident that by the end of this (financial) year we will be able to revisit some of the restrictions on gold import but we will do so only when we are absolutely sure that we have a firm grip on the current account deficit," he said.
Source:- post.jagran.com
Karnataka, Dgft Ink Pact To Access Electronic Bank Realisation System
Karnataka Government and the Director General of Foreign Trade (DGFT) have signed a Memorandum of Understanding (MoU) to get access to the electronic-Bank Realisation Certificate (e-BRC) System.
Karnataka Finance Secretary I.S.N. Prasad and Director General of Foreign Trade Dr Anup K Poorjari signed the MoU.
The electronic Bank Realisation Certificate System facilitates the banks to electronically submit the details regarding foreign exchange realised along with other information pertaining to exports.
Thereafter, the exporters verify such data on the Portal of the Director General of Foreign Trade and furnish a declaration regarding the correctness of the uploaded data.
The information available on the DGFT Portal is helpful for the State government to facilitate early settlement of tax refund claims, filed by the exporters and also to extend tax exemption to goods, exported by them, said I.S.N. Prasad.
The access to e-BRC System is expected to help the Department of Commercial Taxes to extend consistent services relating to refund and exemption to the exporters quickly, he added.
Karnataka Commissioner for Commercial Taxes, Ajay Seth, said access to the e-BRC System will facilitate the department to know whether the export has really taken place and speedily process the tax refund claims by the exporters.
Source:- thehindubusinessline.com