10% Duty Imposed On Rice Import To Ensure Fair Price For Bangladeshi Farmers

The duty is effective from Sunday, according to Finance Minister AMA Muhith. He told a pre-budget discussion of the chiefs of the parliamentary standing committees on Sunday that the decision aimed at ensuring fair price of rice during the current Boro season.

On Saturday evening, Agriculture Minister Matia Chowdhury said in a BBC programme that the government had taken the decision to restrict rice import. She said Bangladesh was self-sufficient in rice cultivation, obviating the need to import.

The government had not imported rice in the past three years but importers seized the opportunity in the absence of any duty on food imports.

Farmers had been protesting against the imports, saying they were unable to recover cultivation costs because of imports from India at cheaper rates.

It has been alleged that Bangladeshi farmers are not getting remunerative prices because of imports from India and boost in indigenous cultivation.

The agriculture minister said India dumped rice preserved in warehouses for over two years. “Many dishonest businessmen in Bangladesh took the chance to import rice,” she alleged.

According to Bangladesh Bank’s analysis of import data, Letters of Credit (LC) worth $ 476.4 million were opened in the first nine months (July-March) of the 2014-15 fiscal year. The amount was 66 percent higher than that of the same period last year. Importers had opened LC worth $ 430 million in that period.

Source:bdnews24.com

Guar Prices Rise On Export Demand, Fears Of Possible Production Losses

After crashing to multi-year low levels in March, guar prices have started bouncing back on anticipation of below-average monsoon and increased demand from the shale gas sector. Prices are expected to remain firm as they wait for subsequent monsoon predictions for further direction.

Guar seed prices in the National Commodity and Derivatives Exchange (NCDEX) have recovered more than 35 per cent to Rs 5,200 per quintal from Rs 3,600 per quintal in March. In case of guar gum, prices have surged 47 per cent to Rs 12,760 per quintal from Rs 8,690. Between October and March, guar seed and gum prices had dropped almost 38.4 per cent and 52.4 per cent, respectively, as the demand from the shale gas sector has been low, because of the subdued crude oil prices. Usually exports from the US pick up by October. But this year, as the guar prices were high at that time, the sector had also started looking for cheaper alternatives.

However, buying started picking up in March as guar prices came crashing down. More than 55 per cent guar gum produced in India is exported to the US for fracking purposes in shale gas drilling. China, Germany, Italy, Malaysia, Russia and Turkey are the other buyers of guar gum. India also exports food grade guar gum, which accounts for about 30-35 per cent of total guar shipment.

As exports picked up at low price levels, traders and stockists also started stocking up the commodity. The price surge in April was also due to the demand from traders. As the crude oil prices have recovered from their lows, traders expect that the demand from the shale gas sector will get better.

According to the data by APEDA, exports of guar gum from April to February stood at 6.63 lakh tonne, up 21 per cent from 5.45 lakh tonne exported last year. While the demand has been a trigger for price recovery, the concerns about production also supported prices. In case of a deficient monsoon, similar to other kharif crops, sowing will be lesser in guar too.

“After Indian meteorological department’s monsoon predictions, there have been speculations in the market that the next crop will be smaller as El Nino effect on the monsoon will result in lower sowing,” said Ritesh Kumar Sahu, analyst, agri-commodities, Angel Commodities. IMD in its first estimate has predicted below-average rains in 2015.

Guar is normally sown during the onset of monsoon around July and August and harvested during October and November. The crop requires good spells of rain during first and last week of September while the seed matures. Guar is grown mainly in arid districts of Rajasthan and depends heavily on the monsoon.

In 2014-15, guar production is estimated at around 20-22 lakh tonne, which is lower by about 18-20 per cent against last year’s production of 25-27 lakh tonne. In the past five years till 2013-14, guar production had grown three-fold. “Guar seed and guar gum prices are moving positively in last six weeks as supply has dwindled amid fear of lower production and good steady demand from food and textile industries apart from oil industries for drilling purpose,” said Sahu.

“We expect guar seed prices to sustain at the current level. Prices may consolidate in the range of Rs 5,300 per quintal and Rs 5,600 per quintal and wait for the monsoon for further direction. Similarly, guar gum may touch Rs 13,000 per quintal level in next one month depending on the demand for exports on dwindling supplies,” he added.

Source:mydigitalfc.com

No deemed dividend if advances are received in normal course of business from customer for executing

IT : Advances received by assessee shareholder under an agreement to do job work for company could not be treated as deemed dividend

Govt. may grant extension to complete investigation after expiry of original time limit

Excise & Customs : Central Government's decision to grant extension in time-limit to complete investigation by Designated Authority (DA) is purely 'administrative' and in absence of any bar in Act or Rules, Central Government can grant ex post facto extension i.e., after expiry of original (initial/extended) time-limit

DRP gets flak from ITAT for confirming additions made by TPO without considering submissions made by

IT/ILT : Where DRP confirmed addition made to assessee's ALP by TPO without considering submissions raised by assessee on merits, order so passed deserved to be set aside

Export Infrastructure On Mind, Commerce Ministry Seeks Rs 300 Crore From Finance Ministry

Worried over a steep decline in exports, the Commerce Ministry has sought Rs 300 crore to develop export infrastructure around ports.

"We have to modernise our export infrastructure in order to boost exports. Export situation is not good. We have sought Rs 300 from the Finance Ministry to develop the infrastructure," a top commerce ministry official told PTI.

The amount is proposed to be used this fiscal only to set testing laboratories, certification centres, warehouses, cold storages, convention centres and exhibition centres around ports. The Commerce Ministry has identified some ports where the funds would be deployed.

The official said the Finance Ministry has provided only Rs 50 crore, which is not adequate and "we have urged them to increase the allocations".

India's exports dipped deeper into the negative zone, recording a decline of 21 per cent in March, the biggest fall in the past six years, pulling down the total shipment for 2014-15 to USD 310.5 billion, missing the target of USD 340 billion.

Exports have been on a downward loop since December last year. The previous biggest decline in export was in July 2009, when it slumped 28.4 per cent.

India's exports are contracting mainly because of inadequate infrastructure, global demand slowdown, soft crude oil prices, and a declining competitiveness of Indian exporters. An industry expert said inadequate infrastructure and old testing and certification facilities near ports are impacting the country's exports adversely, besides pushing the transaction costs up.

A commerce ministry's strategy paper released in 2010 had emphasised on the need to invest billions to boost exports. It had asked the government to invest to modernise roads, ports, railways, airports, power and customs stations. "Port infrastructure needs to be modernised to reduce transaction costs and boost shipments," FIEO President S C Ralhan said.

India's exports in the last three years have been hovering around USD 300 billion. India's exports in 2013-14 fell short of the USD 325 billion target, managing to reach USD 314 billion. It stood at USD 300.4 billion in 2012-13 and USD 307 billion in 2011-12.

Source:economictimes.indiatimes.com

Competition Cuts Into Pepper Exports

The country has, of late, been facing a stiff competition from Vietnam in international pepper market. That’s not all. India’s imports from Vietnam had also surged last year. Vietnam accounts for about 30 per cent of the world’s total pepper yield and about 50 per cent of its export volume. The US, the UAE, the Netherlands and India are the leading consumers of Vietnamese pepper.

Meanwhile, International Pepper Community (IPC) data has pegged global production this year at 3,36,000 tonne compared to 3,79,300 tonne last year. Carry forward stocks from last year have been projected at 84,706 tonne.

Global production for next year is estimated to be at 3,74,500 tonne, around 5,000 tonne lower than 2013. Carry forward stocks from next year to 2016 are estimated at 60,386 tonne. Exports next year has been pegged at 2,78,305 tonne against 2,68,755 tonne. At the same time, domestic consumption in producing countries has been put at 1,38,270 tonne against 1,45,540 tonne this year.

The spices board, on its part, has estimated the pepper production in 2015 at 70,000 tonne, comprising 68,000 tonne of black and 2,000 tonne of white pepper. This, of course, has to be seen in the wake of the lower rain forecasts.

Rain and thundershowers have occurred only at isolated places over Uttarakhand, sub-Himalayan West Bengal and Sikkim, Orissa, south interior Karnataka, Tamil Nadu, Kerala, Lakshadweep and Andaman & Nicobar Islands. Weather remained dry over rest of the country.

Interestingly, till a couple of month ago, states like Kerala, Karnataka and Tamil Nadu experienced bumper harvest. And prices have declined thanks to the bumper harvest in these states. Harvesting has now begun in Vietnam, the biggest producer, and also in Sri Lanka. Analysts pointed out that traders in India are expecting local demand to go up in near future. Traders expect that more buying will happen from the side of industry consumers before the monsoon kicks off.

According to the latest report from Geofin Comtrade, the pepper market was stronger last week, particularly in India. In Indonesia and Vietnam, the market has recovered after experiencing a declining trend observed during last few weeks, according to the recent report from International Pepper Community (IPC).

In Kochi, pepper price increased further by Rs 10 per kg to Rs 585 per kg. In Lampung and Bangka in Indonesia, prices recovered and stood at IDR105,000 per kg for black pepper and IDR 170,000 for white pepper (in Bangka).

In HCMC, Vietnam, local price of black pepper increased by 2 per cent to VND178,500 per kg this week. In Sri Lanka, local price also increased by LKR10 per kg this week.

According to the Vietnam customs statistics, total exports of the spice in 2015 (Jan-Mar) were at 39,560 tonne, down 19 per cent year-on-year. India’s pepper exports during April-December stood at 14,500 tonne, down 6 per cent from the previous year, according to the offered by the spices board of India.

Source:mydigitalfc.com

Export Of Buffalo Meat To Russia Commences: Jaishankar

The export of buffalo meat from India to Russia has commenced while the shipment of milk products is expected to begin soon. The issue was discussed during the bilateral meeting between President Pranab Mukherjee and his Russian counterpart Vladimir Putin, foreign secretary S Jaishankar said on Saturday.

"Bovine meat export to Russia has commenced while export of milk products from India will begin soon," he said at a press conference here.

The decision to export buffalo meat to Russia bears significance as cow slaughter is banned in Maharashtra but there is no restriction on export of buffalo meat.

Indian Ambassador to Russia P S Raghavan said that Russia essentially approved certain Indian companies to export buffalo meat to Russia and this was part of the broader agreement for export of agri products from India.

Jaishankar also said that a regulatory framework has been set up for diamond exports while Russia has also shown interests in investments in Indian infrastructure projects and smart city projects.

Source:timesofindia.indiatimes.com
 

Ongc Chief Dinesh K Sarraf Says It Is Ready To Take A Leading Role In Helping Country Achieve Energy Security

A year into the top job at Oil and Natural Gas Corporation (ONGC), Dinesh K Sarraf feels he has succeeded in inducing something fundamental into the company: Confidence.

With the 'jinx' of seven straight years of oil production decline broken, projects delayed for years put on 'fast-track' and intolerance for 'slippage' induced within the firm, Sarraf says the company is ready to shrug off past criticism and take a leading role in helping the country achieve energy security.

Prime Minister Narendra Modi recently laid out an aggressive roadmap for the industry to cut India's import dependence in oil by 10% in seven years from 78% now. To achieve this, ONGC would need to chip in, but its record has been patchy, and the company has faced criticism.

"That criticism has helped," said Sarraf, chairman at ONGC, referring to the urgency it generated in dealing with challenges at the firm in the past year. ONGC was able to arrest the seven years' decline in crude output, aided by the strong performance of its offshore fields. "We broke the jinx of declining production this time.

What it has resulted in is the confidence in the team. Now they know, they can do it," he said. The company this year plans to focus on pushing up output from its ageing onshore fields and boost assets overseas. ONGC approved five projects worth Rs 25,000 crore last year, mainly to develop marginal fields in the western region. "All these projects are well-monitored. Even a day of slippage has to be explained," Sarraf said. The output will begin in a 'small way' this fiscal year.

More significantly, Sarraf recounts his efforts at 'fast-tracking' the KG-DWN-98/2 project. "When I met the team in June last year and asked them when we could see the first gas. They said 2021. I told them if we need to work together, we will have to work with a new deadline of 2018."

To the team, it looked barely achievable, but Sarraf says he made them draw a new plan, get it validated by an external consultant, identified risks and modified decisionmaking process to ensure they followed a viable new deadline. In a month or so, the board will likely approve about $6 billion investment in the project.

The impact of these efforts have been that, he says, "We no more feel helpless". Besides, the firm's gas output would rise 70% by 2018-19. ONGC plans to approve projects worth Rs 60,000 crore between April 2015 and June 2016. ONGC is also looking for acquisition opportunities, which have multiplied with falling oil prices. "We are ready, but we are not in a hurry," he said. Sarraf, a commerce graduate from Delhi University's Shri Ram College of Commerce and a cost accountant, has about two-and-half years more to go into his job.

He says he would continue to focus on inducing the spirit of 'we can' and 'ownership' among the company employees. "ONGC will not be criticized that it's not a transparent company, that it's a lethargic company, that we don't listen to all stakeholders," Sarraf says on the kind of company he wants to leave behind.

Source:economictimes.indiatimes.com
 

India Is The World's Top Drone Importer

The decision by India's National Disaster Response Force to use drones to help Nepal map the scale of devastation caused by last month's earthquake indicates how India has enthusiastically taken to these pilot-less aircraft -- the so-called eyes in the sky.

With 22.5 per cent the world's unmanned aerial vehicle (UAV) imports, between 1985 and 2014, India ranks first among drone-importing nations, followed by United Kingdom and France. UAVs, or drones as they are commonly known, are pilotless aerial vehicles used for reconnaissance, surveillance, intelligence gathering and aerial combat missions.

The advantage of UAVs is that they come at a fraction of the cost of manned aircraft with no risk to human lives. The data here relate to drone/UAV transfers (imports/exports) between countries. There are also drones that have been indigenously developed, so the actual number of UAVs possessed by each nation may be different.

A total of 1,574 UAV transfers have taken place across the world between 1985 and 2014. Of these, 16 are armed UAVs, according to data provided by Stockholm International Peace Research Institute (SIPRI), an independent global conflict-research institute.

UAV trade recorded an increase of 137 percent between 1985 and 2014. The period between 1985 and 1990 saw sales of 185 UAVs globally, which increased to 439 between 2010 and 2014. Egypt and Italy are among the other large importers. The last decade also registered sales of 16 armed UAVs.

India's first UAV delivery came from Israel in 1998. The UK, on the other hand, imported its first UAV in 1972 from Canada. But Japan was the first country in the world to import a UAV, it got one from the US in 1968.

India's UAV imports, have almost all been from Israel, according to SIPRI data. Of 176 UAVs, 108 are Searcher UAVs and 68 are Heron UAVs. Israel is the leading exporter of drones, accounting for 60.7 percent 1985 and 2014.

The US, with a 23.9 percent of UAV exports, ranks second, followed by Canada with 6.4 percent. Israel shipped has shipped 783 drones since 1980.

Source:economictimes.indiatimes.com

Japan, Europe Against India’S ‘Safeguard’ Probes On Steel Imports

The EU and Japan have criticised India for “frequent and frivolous” use of safeguard measures — imposition of higher duties to protect domestic industry against import surges — and have asked New Delhi to review its use of the tool.

The countries also questioned India’s recent safeguard investigation on certain steel products, in a recent meeting of the WTO’s Committee on Safeguards.

“The EU has alleged that many of the investigations have been initiated on weak grounds and asked India to review its use of safeguard measures,” an official who attended the meeting told Business Line.

Of the total 30 safeguard actions notified by countries at a recent meeting of the WTO’s Committee on Safeguards, India accounted for five, but later dropped two. In 2014, too, safeguard investigations initiated by India were one of the highest at 14.

Japan, the EU and Russia expressed concerns about India’s safeguard investigation on seamless pipes, tubes and hollow profiles of iron or non-alloy steel, arguing that imports had not surged.

India, in its defence, said that while imports had decreased, they were still sufficiently high compared to the base year. A number of members, including the US and China, are affected by duties on steel products.

Safeguard duties, which are basically levies in addition to the existing import duties, can be imposed on items that witness a surge in imports, thereby hurting the domestic industry.

India has been depending more on this measure to protect its domestic industry as it is easy to establish. Imposing anti-dumping duty, which is the other form of penal duty that the WTO allows, is more difficult as one has to prove that the imports are actually happening at prices lower than what is being charged in the seller’s home country.

“India is very careful that all conditions laid down by the WTO are met before safeguard duties are imposed. It abandons a lot of investigations when there is room for doubt,” a Commerce Ministry official said.

India announced at the meeting that it had terminated its safeguard investigation on cold rolled flat products of stainless steel. Japan welcomed the announcement but said it still has systemic concerns about India’s safeguard investigations.

The country also announced termination of its safeguard investigation on slabstock polyol, used in manufacture of pillows and mattresses. It is mostly imported from the US and Japan.

Source:.thehindubusinessline.com

Indian People Hold 20,000 Tonnes Of Gold

It may come as little surprise to those who understand the "fear trade" and the "love trade" in gold, as Frank Holmes of US Global Investors likes to say.

Last week the Economic Times reported that the Indian public hold 20,000 tonnes of the yellow metal in jewelry, coins and gold bars. It was unclear from the media report what was the source of the "20,000-tonnes" comment, but Arun Jaitley, the Indian Finance Minister, reportedly stated the figure after noting that the Indian government does not have data on gold held by the general public.

However it would mesh with a news story three years ago in The Financial Express, which said that Indian households have amassed up to 20,000 tonnes for a historic high of $1.16 trillion, based on the gold price in 2012. The figure came from the World Gold Council (WGC) which estimated that India's household gold reserves at the time were 11 percent higher than the 18,000 tonnes it had earlier pegged.

Gold has been pouring into India since the government last November scrapped gold import restrictions, including the 80:20 rule, which required gold traders to export 20 percent of the gold that they imported. In April Reuters reported that gold imports more than doubled to 125 tonnes in March from the 60 tonnes in the year-ago period. Gold imports for the fiscal year 2014-15, which ended at the end of March, were up 36 percent to 900 tonnes.

India, the world's top gold consumer, is in 10th position among the top 10 countries that hold the most gold in their central banks. The Reserve Bank of India holds 557.7 tonnes of the precious metal, compared to number 9, the Netherlands at 612.5 tonnes, and eighth-ranked Japan at 765.2 tonnes. The top 3 gold hoarders are the United States at 8,133.5 tonnes, Germany at 3,384.2 tonnes, and Italy at 2,451.8 tonnes, according to Profit Confidential which recently compiled a list.

Source:mining.com
 

Rupee Opens Higher At 63.87 Per Dollar

The Indian rupee on Monday strengthened for the second consecutive session against the dollar, tracking the gains in the local equity markets.

 

The local unit opened at 63.87 per dollar. At 9.10am, the home currency was trading at 63.84, up 0.16% from its previous close of 63.94.

 

Traders are cautious ahead of the Index of Industrial Production (IIP) data for March and Consumer Price Index (CPI)-based inflation data for April which will be issued by the government on Tuesday. A Bloomberg poll estimates that IIP will be at 2.9% in

March as compared with 5% in February, while CPI will be at 4.9% in April compared with 5.17% in March.

 

The Sensex rose 0.53% or 143.03 points to 27,249.42 points. Foreign institutional investors (FIIs) have sold $2.29 billion in equity markets in the last 14 out of 15 sessions, except on 21 April when FIIs bought $2.6 billion. In May so far, FIIs have sold $937.48 million in debt and $551 million in equity.

 

Most of the Asian currencies were trading lower. Singapore dollar was down 0.32%, Malaysian ringgit was down 0.21%, South Korean was down 0.16% and Japanese yen was down 0.1%, while Philippines peso was up 0.1%.

The yield on India’s 10-year benchmark bond was trading at 7.930% compared with its Friday’s close of 7.983%. Bond yields and prices move in opposite directions.

 

Since the beginning of this year, the rupee has lost 1.4%, while FIIs have bought $6.66 billion from local equity and $6.51 billion from bond markets.

 

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.10, up 0.33% from its previous close of 94.794.

 

Source:livemint.com

Separately registered units engaged in integrated manufacturing deemed as ‘single factory’ for Cenva

Cenvat Credit : Where three separately registered units are using a common input in continuous, interconnected and integrated process for common share, they constitute a single factory and CENVAT cannot be denied on ground that credit is being availed by one factory and material inputs are used by three factories

HC directed FMC to monitor e-series contracts to safeguard adverse price fluctuation in commodities

SEBI: Forward Market Commission should monitor transactions with respect to e-series contracts so as to safeguard any adverse fluctuation in price of commodities/bullion

No reassessment of trust to question purpose of accumulation of income if same was accepted at asses

IT : Where Assessing Officer accepted accumulation of income of assessee-trust in scrutiny assessment, subsequent reassessment notice to disallow said amount would be invalid