Ioc Against Import Duty On Crude Oil

India imported 189 mt of crude oil in 2014-15, valued at $112 billion. In the current financial year, the value of imports is expected to come down to $61 billion

Ahead of the Union Budget to be tabled in Parliament on February 29, Indian Oil Corporation (IOC), the nation's largest fuel retailer, has urged the government not to consider reimposing a five per cent customs duty on crude oil imports arguing the levy would jack up costs.
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"Considering the investment plans of the refining companies and the current burden of steep and continuous fall in the prices of finished petroleum products, the refining companies are not in a position to absorb the additional cost of imposition of customs duty on crude oil, if any, since it is not a pass-through levy in the ultimate sales prices of products," IOC Chairman B Ashok told Business Standard.

The Centre had cut Customs duty on crude oil imports from five per cent to zero in June 2011 when global crude oil prices had shot up to around $100 a barrel. However, the government might now look at introducing the duty again in the Union Budget 2016-17 with the oil prices having crashed below $30 a barrel - a 12-year-low.

India imported 189 million tonnes (mt) of crude oil in 2014-15 valued at $112 billion. In the current financial year, the value of imports is likely to come down to $61 billion even as volumes are expected to remain flat at 188 mt, thanks to the slump in crude rates.

The government maintains a 2.5 per cent import duty differential between crude oil and petroleum products, petrol and diesel, to protect the domestic industry. Currently, while crude oil attracts nil import duty, the levy on petrol and diesel stands at 2.5 per cent.

A five per cent import duty likely to be imposed on crude in this year's Budget could, therefore, be accompanied by an increase in petrol and diesel import duty to 7.5 per cent.

The Centre might look at tweaking the current Rs 4,500 a tonne cess on crude production by making it ad valorem to align with global oil prices or cut it down to a low fixed per tonne levy.

The move, if implemented, would benefit producers of oil from pre-NELP (New Exploration Licensing Policy) blocks - Oil and Natural Gas Corporation and Oil India apart from the Rajasthan field of Cairn India - but offset the government's gains from a possible import duty hike on crude oil.

The Oil Industry (Development) Act provides for a cess as duty of excise on indigenous crude oil.

This is a production cess, which is not a pass-through and has to be borne by the producer. However, this is not applicable to domestic oil produced from blocks auctioned under NELP.

The cess was increased to Rs 4,500 a tonne from Rs 2,500 a tonne in 2012 when the crude oil prices rose to $100 a barrel and remain at that level even now.

 

Source :.business-standard.com

Budget 2016 Title Sponsors Co-Sponsors Associate Sponsors Partners Home » Money Last Modified: Wed, Feb 17 2016. 03 49 Pm Ist Rupee Off Day’S Low, Trades Weaker Against Us Dollar At 68.52

Mumbai: The Indian rupee on Wednesday came off the day’s lows against the US dollar amid expectations of a steady outflow of dollars from local equity and debt markets.

At 2.46pm, the home currency was trading at 68.52, down 0.2% from its previous close of 68.38. The local currency opened at 68.52 a dollar and touched a low of 68.67—a level last seen on 4 September 2013.

Foreign institutional investors (FIIs) have been sellers for the 10th consecutive session and fifth consecutive session, respectively in equity and debt markets. The Sensex index rose 0.92%, or 221.19 points, to 23,413.16. So far this year, the Sensex has fallen 11.5%.

“It all now depends on what the Reserve Bank of India does in the market. If the current momentum continues, it is quite possible that rupee will hit its all-time low. We see a range of 68.50-68.80 for the session, Ashutosh Raina, head of forex trading HDFC Bank.

The Indian currency is just 0.4% away from its all-time low of 68.85 a dollar hit in August 2013. Since January, the rupee has lost 3.55% on the back of $2.32 billion outflow from the local equity markets.

Weak Asian currencies continued to weigh on the rupee. Malaysian ringgit was down 1.54%, South Korean won 0.85%, Indonesian rupiah 0.7%, Taiwan dollar 0.66%, Philippines peso 0.31%, China offshore spot 0.14%, China renminbi 0.14%, Singapore dollar 0.07%. However, Japanese yen was up 0.32%, Thai baht 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.666, down 0.21% from its previous close of 96.868.

Meanwhile, the yield on India’s 10-year benchmark bond was trading at 7.797% against Tuesday’s close of 7.783%. Bond yields and prices move in opposite directions.

 

Source:.livemint.com

Cotton Output Shortage To Affect Textile Exports Of Pakistan

Pakistan cotton crop for the year 2015/16 due to its sharp reduction in output, textile manufacturers are anticipate serious affects on export activities for which they demand for an immediate tax holiday on import of cotton, that might off-set decline in the textile exports.

All Pakistan Textile Manufacturers Association (Aptma) has sent a letter to the finance minister, informing that the cotton crop for the year 2015/16 had miserably failed to meet the industry requirement. There is a shortage of approximately, four million cotton bales compared to the last year and the industry will have no option but to import cotton, it added.

The finance minister has been informed that five percent sales tax and three percent customs duty was levied on the import of cotton. In order to make the basic textile industry competitive for the entire textile value chain, the levy on import of cotton should be withdrawn, Aptma said in its letter.

The communication also said the sales tax up to six percent had also been imposed on import of polyester staple fibre (PSF) and Viscose Staple Fibre (VSF).

A textile manufacturer said that the local industry consumed about 15.5 – 16 million bales annually. Previously, the imports stood around 2.5-3 million bales annually. However, the shortage this year has been projected at 10.8 million bales, which means the industry will need around 5-6 million bales to meet the manufacturing demand.

The manufacturer said that fall in production and high rates of duty and taxes had already started affecting textile exports.

Textile exports have already posted 9 percent decline to $6.27 billion during the first half of the current fiscal year as compared with $6.88 billion in the corresponding half of the last fiscal.

On the other hand, cotton import grew sharply due to output shortage. The import of raw cotton posted 175 percent growth to $311 million in July-December 2015 as compared with $113 million in the same months of last year.

The Pakistan Cotton Ginners Association (PCGA) estimates the current year’s output at a 12-year low, as production was recorded at 10.05 million bales back in 2003-2004.

The United State Department of Agriculture (USDA) has projected 10.24 million bales this year output in Pakistan even lower than local estimates.
The USDA projected world-wide decline in cotton production for this year. According to the USDA global data, cotton production may face 13 percent decline this year.

Source:.yarnsandfibers.com

Maharashtra Goes All Out To Prevent Hitches In Mango Exports This Season

Having learnt some bitter lessons from the ban on Indian mango by the European Union (EU) in the past, both government authorities and mango growers from Maharashtra do not wish to repeat their mistakes in the coming season.

This time, officials from the Maharashtra agriculture department, Maharashtra State Agriculture Marketing Board (MSAMB) and Agricultural and Processed Food Products Export Development Authority (APEDA) have decided to coordinate to ensure that there are not traceability issues and there are no hurdles in exports. Around 70,000 tonne of mango are expected to be exported this season and some 10,000 tonne are slated to be exported to the EU, top officials said. Last year, India exported some 50,000 tonne, very little of this to Europe.The EU had imposed a temporary ban on Alphonso mangoes and four vegetables from India, stating that it had found fruit fly infestation in the fruit and the ban on the mango was later lifted last year towards the end of the season

“These targets will be possible when mango growers from Maharashtra and the rest of the country follow the ‘Mangonet’ protocol. When the Indian mango is banned by some nations, it is not the mango from Maharashtra but mangoes from other states as well and therefore, all the mango growing states need to follow the protocol. MSAMB will be writing to APEDA to ensure that this is followed strictly across the country so that export is not affected,” Milind Akare, MD, MSAMB said after the meet in Pune.

Government agencies had worked to put in place MangoNet — an online traceability system that registers mango growers and exporters and enable importers and supermarkets in the EU to check complete details of their shipments — on the lines of the successful ‘Grapenet’. Maharashtra is the largest mango exporter in the country and accounts for 90% of the total export of the country. A meet has been planned on February 29 at Ratnagiri by the three government agencies to sensitize mango growers in the Konkan region.

According to Akare, although there are some 25,000 mango growers in the state, only 2000 of these are registered on MangoNet. This is because most farmers find it difficult to meet the protocol developed in MangoNet, which includes timely spraying cycles and application of pesticides among other things.

Moreover, APEDA has made it mandatory for exporters to pick mangoes for export only from growers registered on MangoNet. MSAMB has therefore established 22 teams to monitor farmers.

 

source :.financialexpress.com
 

Jsw Steel's Plan To Build A Mega Steel Project In Jharkhand Remains Uncertain

MUMBAI: JSW Steel's plan to build a 10 million tonne steel plant in Jharkhand remains uncertain as excess domestic capacity combined with unabated influx of cheap imports from China, Japan and South Korea in the last one year prove to be real dampeners on the future of mega steel projects in the making.

Sajjan Jindal-led JSW Steel's Rs 35000 crore Jharkhand project was stuck on the drawing board since 2005 due to lack of direct supply of raw material iron ore mines and land acquisitions issues. But high imports from China have added another problem to the list.

"Jharkhand is a long-term plan for JSW Steel. We are waiting for the right time. Presently there is overcapacity in the steel industry and China is dumping steel into India," said Jayant Acharya, Director for Commercial & Marketing at JSW Steel, on the sidelines of Jharkhand seminar at 'Make in India' week on Wednesday.

He added the company was also awaiting clarity on the iron ore linkages in the state.

JSW SteelBSE 1.10 % reported a consolidated net loss of Rs. 923.34 crore for the quarter ended December against a profit of Rs. 328.94 crore in the same quarter last year, hurt by impairment charges and higher competition from Chinese imports.

Indian government's plan to convert India into a manufacturing destination is led by the belief that more factories in India will lead to job creation and reduction in expensive imports.

While the government is trying to make in easy to do business in India global commodity meltdown and insufficient demand to absorb the supply of steel is becoming a stumbling block. Indian government recently imposed a minimum import price on steel, giving some breathing space to steelmakers caught in losses.

JSW Steel is the process of increasing capacity at its existing plants in India. But mega investments like Jharkhand may have wait until the company is sure about demand and link to iron ore mines.

Earlier JSW Steel, which has no captive iron ore mines, suffered in Karnataka as allegations of illegal mining shut access to most commercial mines in the region. It led to increase in production costs.

 

Source :economictimes.indiatimes.com

Indian Car Makers Exports

Passenger-car shipments from India fell 18.85 per cent to 33,909 components in January thanks to challenges in leading export markets like Algeria, Europe and neighboring countries.

Indian car-makers had shipped 41,787 the same month of the previous year.

In 2014/2015, Indian companies released passenger vehicles (PVs) worth $293 million to Algeria. Furthermore, PVs worth $158 million were exported to Sri Lanka. $335 million was accounted for by United-Kingdom.

According to Deputy Director General of SIAM, Sugato Sen : “We are facing issues in Algeria as they have brought in some changes in technical regulations. We have visited the country to sort out the issues. It is bothering us”.

 

Source :indiatransportportal.com

India To Save Rs 30,000 Crore In Fy16 By Cutting Down Coal Imports

MUMBAI: India will save Rs 30,000 crore in 2015-16 by cutting down on coal imports as domestic production has picked up, coal secretary Anil Swarup said. The government is aiming to completely eliminate the import of the kind of coal that is available domestically, he added.

Coal India, the state-run company that is the largest coal producer in the country, plans to double its production to 1 billion tonne by 2020. In the current year through March, it would have scaled up production to 550 million tonne which is likely to increase to 600 million tonne next year.

"Imports have already started coming down. This year, imports are already down by 16% resulting in savings of Rs 22,000 crore so far. We would probably save Rs 30,000 crore by the end of this year," Swarup told ET on the sidelines of the Edelweisss India Conference.

Typically, Indian coal is almost 40% cheaper than imported coal. So far, India has been importing coal as Coal India was unable to match growing demand.

"We will eliminate import of such quality of coal which is available in India in two years," he said. Power plants in the coastal areas are designed to run on high-grade coal, which has higher calorific value and low ash content as compared with the local coal and, to that extent, the country would continue to import this grade of coal. Of the total 212 million tonne of coal imported last year, around 30-40 million tonne were of the quality that is not available locally. "We have so far focused on increasing quantity and its showing results.

Now, the focus is on improving quality of coal. We want to ensure only crushed coal moves out of mines and from January 1st, it has already started happening. This ensures that power plants don't receive coal with high amount of stones as they did in the past," Swarup said.

The ministry has also set up a mechanism for third-party coal sampling to avoid slippages and has pushed for setting up 15 coal washeries to ensure quality.

Swarup said of the 29 mines that were in production were de-allocated and then bid out, 10 have started production again. "These 10 mines are producing 8 million tonne so far. Other mines had issues and some are in court. But we are hopeful that over two-three months, other mines will also start (production)."

Swarup said the power ministry's Ujjwal Discom Assurance Yojana initiative will benefit power distributors, increase power demand and subsequently boost coal production.

 

Source :economictimes.indiatimes.com

Store Our Oil And Take Two-Thirds For Free: Uae's Offer To India

The United Arab Emirates' national oil company - Abu Dhabi National Oil Company (ADNOC) - has in the first deal of its kind agreed to store crude oil in India's maiden strategic storage and give two-third of the commodity to it for free.

India, which is 79 per cent dependent on imports to meet its crude oil needs, is building underground storage facilities at Visakhapatnam in Andhra Pradesh, and Mangalore and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions.

Adnoc is keen on taking half of the 1.5 million tonnes Mangalore facility, Oil Minister Dharmendra Pradhan said on Wednesday.

It will stock 0.75 million tonnes or 6 million barrels of oil in one compartment of Mangalore facility. Of this, 0.5 million tonnes will belong to India and it can use it in emergencies. Adnoc will use the facility as a warehouse for trading its oil.

The 1.33 million tonnes Visakhapatnam storage and 2.5 million tonnes Padur stockpile together with the 1.5 million tonnes Mangalore storage will be enough to meet nation's oil requirement of about 10 days.

After talks with visiting UAE Minister for Energy Suhail Mohammed Al Mazrouei, Mr Pradhan said the tax issue remains to be sorted out before Adnoc can begin storing oil at Mangalore.

Congress-ruled Karnataka government has not yet agreed on waiving VAT (value-added tax) on the crude oil imported for the strategic storage, which UAE wants to use to stock oil when prices are low and supply to its customers when rates are good.

"This will be beginning of our strategic ties," he said, adding that Prime Minister Narendra Modi's visit to UAE in August last year, the first by an Indian Prime Minister in 38 years, laid the foundation of closer cooperation.

The UAE had then committed to invest $75 billion in India, and Mr Pradhan on Wednesday showcased to Mr Mazrouei opportunities for that investment.

"We have offered them refinery projects, petrochemical plans, pipelines and LNG terminals for investment," he said.

On offer was 26 per cent stake for $700 million in ONGC's about-to-be-commissioned petrochemical project at Dahej in Gujarat and 24 per cent equity for $200 million in expansion being planned by BPCL of its subsidiary Bina refinery in Madhya Pradesh from 6 million tons to 7.5 million tonnes.

Also, an investment of $530-850 million can get the UAE 25-40 per cent stake in HPCL's planned petrochemical plant on the Andhra coast, he said, adding that the Gulf national can also invest in the planned 60 million tons in Maharashtra and the Jagdishpur-Haldia and Paradip-Surat gas pipelines.

"UEA makes up for 8 per cent of our oil imports. We are trying to import more oil from UAE. In 2016-17, we plan to import 2.5 million tonnes more oil than current year's purchase of 16.11 million tonnes," he said.

Mr Pradhan said areas of mutual interest were discussed during his meeting with UAE Energy Minister.

Indian firms are not present in upstream oil exploration and production business in the UAE, he said, and mentioned the interest of companies like ONGC Videsh Ltd (OVL) to secure producing or prospective assets there.

Also, they are interested in taking stake in Abu Dhabi Company for Onshore Petroleum Operations Ltd (ADCO), he said, adding that Engineers India Ltd (EIL) was interested in engineering and consultancy contracts in UAE.

"We also offered them partnership in building of second phase of strategic crude oil storages," he said.

India is looking at building four more strategic crude oil facilities at Bikaner in Rajasthan, Rajkot in Gujarat, Padur in Karnataka and Chandikhole in Jajpur district of Odisha.

Besides Adnoc, Kuwait Petroleum Corp (KPC) has also evinced interest in hiring a part of the maiden strategic storage.

Source:- profit.ndtv.com

Need To Withdraw Duty On Import Of Used Cooking Oil To Be Used As Bio-Diesel: Nitin Gadkari

Union minister for road transport, highways and shipping Nitin Gadkari at an event said that the government is mulling to withdraw duties imposed on import of used cooking oil to be used as an alternate, cheap fuel for transportation.

Addressing an ASSOCHAM event in New Delhi, Gadkari said that the Govt intents to build smart cities at 10 major ports; needs to construct houses worth less than Rs. five lakh to promote low-cost housing for poor

“I have requested Commerce and Industry Minister, Nirmala Sitharaman to withdraw duties on import of fried oil which is often discarded as waste after being used once and is available in abundance across the world,” said Gadkari while addressing a global summit on ‘Smart Cities-Smart India,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“If that oil comes in our country it will help in making bio-diesel and its cost is about Rs. 3-4 per litre cheaper than petroleum diesel and when we will withdraw duties imposed on the same its price will come down by another Rs 6-7/litre,” said Gadkari.

“The average is almost the same and it will help reduce pollution, so we are encouraging use of bio-diesel,” he added.

Highlighting the importance of promoting low-cost housing across India, Gadkari “The biggest stumbling block is that only about one per cent of people in India can purchase house costing above Rs. 10 lakh, so if we are able to make houses worth less than Rs. five lakh about 30 percent of people would be able to buy those houses which will help us build smart cities and provide housing to poor,” said the union minister.

Talking about use of waste material in constructing low-cost houses, Gadkari said, “Conversion of waste into wealth will be promoted and it will prove to beneficial.”

The union minister also said that central government will build one smart city each at 10 out of country’s 12 major ports, union minister for road transport, highways and shipping.

“Apart from our ports at Mumbai and Kolkata, we have planned to develop smart cities at 10 out of 12 major ports in India,” said Gadkari.

He also said that in the times ahead, use of electric cars and buses would be promoted for transportation in smart cities to reduce air pollution, besides it is very cost effective.

He also informed that government is constructing waterways on a 1,620 kilometer stretch on Ganga between Varanasi and Haldia.

“Varanasi, Haldia and Sahibganj will be developed as multi-modal hubs with roadways, waterways and railways. For this, we have acquired land, our designs are ready, we have given work order for all three places, so before March we will begin work,” said Gadkari.

He also informed that government had initiated river traffic control system from Haldia to Farakka and it will initiate in next six months from Farakka to Patna and thereafter from Patna to Varanasi.

The union minister further informed that government will start RO-RO (Roll-on Roll-off) service at five places - Haldia, Patna, Varanasi, Sahibganj and one more place needs to be selected.

Source:- http://ift.tt/JUEAQD

Gold Imports Up In 2015, Demand Stagnant

 India has seen a surge in gold demand in second half of 2015 but overall the year ended with total demand remaining stagnant. According to the report of gold demand trend for Q4 of 2015 and full year report released today. India's total demand for gold in 2015 was 848.9 tonnes compared to 842.7 tonnes in 2014. In value terms however due to lower price import bill has not seen any significant increase. It was around $35 billion.

In the calendar year ended December 2015, second half has seen a sharp surge in demand due to lower prices with total demand at 502.3 tonnes. However against this as per WGC data, total net bullion imports was 897.5 tonnes which was 769 tonnes in 2014. The rising import at a time when demand is stagnant represents some inventory with jewellers and fall in unofficial imports.

The demand trend report for 2015 released today also says that in the year China remained top gold consuming country keeping India second. China's total demand was 984. 5 tonnes against 813.6 tonnes in previous year. Traditionally India had been a top gold consumer but in 2013 and 2015 China remained at the tope while in 2014 India was number one consumer. In 2015 following depreciating currency in China especially in second half and crashing stocks consumers preferred to move back to gold.

Globally total gold demand in 2015 was virtually flat compared to 2014 at 4,212 tonnes said the council. Despite a challenging start to the year, gold demand rebounded in the second half of 2015 as a result of sustained buying from central banks and a strong second half from China and India.

This was particularly evident in the retail investment, where bar and coin purchases were led by China and Europe, with strong support from the US, as investors took advantage of weaker prices amid a softening economic backdrop, financial turbulence and ongoing geopolitical tension.

Global investment demand for the full year 2015 grew by 8% to 878 tonnes.

Overall jewellery demand for the full year 2015 was down 3% to 2,415 tonnes. Following a slower start to the year, "the third and fourth quarters combined produced the strongest second half-year total for gold jewellery in 11 years," said the report.

Central Bank demand for the full year 2015 saw a small uptick of 4 tonnes in 2015 to 588 tonnes as the need for further diversification was reinforced by a tumbling oil price and reduced confidence in the global economy. Central banks demand recovered in december quarter. It went up 25% to 167 tonnes, making this the 20th consecutive quarter of net purchasing.

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, said, "Looking ahead, physical demand will continue to be supported by strong central bank purchases, and continued buying of jewellery, bars and coins by households across the world, led by India and China. If we just look at the year to date, the investment case for gold is as strong as ever. While stock markets have wobbled, gold has performed well."

Total supply for the year experienced a drop of 4% to 4,258 tonnes due to lower recycling supply and most importantly mine production growth falling to its lowest level since 2008. Mine production contracted in Q4, the first quarterly contraction since 2008, as cost cutting took effect. In december quarter it substantially declined by 10% to 1,037t as primary production slowed as a result of weaker gold prices, mine closures and project delays.

Source:- http://ift.tt/15HW3lL

Understanding India’S Export Predicament

India’s commodity exports fell by 18.4 percentage points year-on-year during April-December 2015. In percentage terms, this is the worst fall in export values since 2001, and around 5 percentage points more than the previous high of 13.8 percentage points in April-December 2009.

It might be tempting to put the entire blame for the fall in exports on the sluggish global economic scenario. However, it is also a fact that India’s performance on the external trade front has been found wanting even during better times. Here are some facts which can help understand India’s export predicament during the post-reform period.

India’s pre-liberalization growth strategy was criticized by many on the ground that it stifled exports. It was argued that opening up the economy would open up avenues for increased exports and hence more earnings for the economy. Exports did increase at a faster rate in the post-reform period. Annual percentage growth of exports (in dollar terms) was 37.7% between 1955-56 and 1990-91. It went up to 70.4% between 1991-92 and 2014-15. However, these gains were more than neutralized by a much faster growth in imports. Annual percentage growth of imports (in dollar terms) was 38.4% and 95.1% for the two periods, respectively. As a result, there has been a significant increase in the percentage share of trade deficit to GDP for India. Prior to the reform period, the highest level of five-year moving average of trade deficit as a percentage of GDP was just above 3%. This figure has continued to increase and reached an all-time high of 9% a couple of years ago.

Source:- livemint.com

Rupee Hits Fresh 29-Month Low Against Us Dollar

The Indian rupee on Thursday hit fresh 29-month low against the US dollar after local equity markets fell over 800 points.

At 3.58pm, the home currency was trading at 68.31 per US dollar, down 0.66% from its previous close of 67.86. The local currency opened at 67.95 a dollar and touched a low of 68.31—a level last seen on 4 September 2013.

The Sensex index fell 3.4%, or 807.07 points, to 22,951.83. This was the fourth consecutive session when the index closed lower. Since 5 February till date, the index has fallen 6.82%. So far this year the index is down 12.17%.

Traders are also cautious ahead of the Index of Industrial Production (IIP) and Consumer Price Index (CPI)-based data due on 12 February after 5.30pm. According to Bloomberg estimates, IIP will be at zero for December as compared with -3.2% in November. CPI will be at 5.4% in January from 5.61% a month ago.

“Our equity markets are tanking and that’s getting reflected in the currency’s movement,” Bloomberg report said, quoting Gaurav Sharma, a senior currency analyst at Religare Commodities Ltd in Noida. “The rupee will chart its own course once the sell-off abates,” he said.

The yield on India’s 10-year benchmark bond was trading at 7.722% against Wednesday’s close of 7.817%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 3.05%, the worst performing currency in Asia, while foreign institutional investors have sold $1.89 billion from local equity and bought $444.10 million in bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.787, down 0.11% from the previous close of 95.888.

Asian currencies were trading mixed. Japanese yen was up 1.8%, Taiwan dollar 0.4%, China offshore 0.23%, Thai baht 0.16%, Indonesian rupiah 0.1%, Singapore dollar and Hong Kong dollar rose 0.08%. However, Malaysian ringgit was down 0.47%, South Korean won 0.35%, Indonesian rupiah 0.1%, Philippines peso and China renminbi declined 0.08%.

Source:- livemint.com

Rupee Trades Marginally Lower At 67.91 Against Us Dollar

The Indian rupee on Wednesday was trading little changed against the US dollar in mid-day trading session.

At 2.14pm, the home currency was trading at 67.91, down 0.02% from its previous close of 67.90. The local currency opened at 67.90 a dollar and touched a high and a low of 67.84 and 67.99, respectively.

The Sensex index fell 1.4% or 329.96 points to 23,683.52 points. So far this year, Sensex fell 9.5%.

The yield on India’s 10-year benchmark bond was trading at 7.825% against Tuesday’s close of 7.838%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 2.6%, the worst currency in Asia, while foreign institutional investors have sold $1.8 billion from local equity and bought $457.40 million in bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.967, down 0.11% from the previous close of 96.071.

Most Asian currencies were trading higher. Indonesian rupiah was up 1.3%, Malaysian ringgit 0.87%, South Korean won 0.74%, Taiwan dollar 0.59%, Philippines peso 0.47%, Japanese yen 0.34%, Singapore dollar 0.32%, China offshore 0.19%, Thai baht 0.11% and Hong Kong dollar 0.05%.

Traders are cautious as the Federal Reserve chairman Janet Yellen will address the US Congress later in the session, for fresh cues and possible relief. Yellen is expected to defend the Fed’s first rate hike in a decade and is likely to insist that further rises remain on track, any signs of a departure from such a stance could provide risk assets with a breather, Reuters reported.

Source:- http://www.livemint.com

Domestic Cotton Prices To Stay Under Pressure In Fy17, Says India Ratings

Domestic cotton prices will stay under pressure in FY17 as volumes are unlikely to match Chinese demand, said India Ratings and Research (Ind-Ra). The rating agency has maintained a negative outlook on the cotton sector for FY17. The rating agency on Tuesday said the continuation of Chinese direct subsidy-based policy and lower demand from spinning mills will keep domestic cotton prices under pressure.

Though Bangladesh, Pakistan and Vietnam have replaced China with India as a supplier, volumes are picking up at a slow pace and are unlikely to match Chinese demand. The operating margins will stay in the 1-2% range for ginners and traders, but the profit after tax margins may improve as sector companies reduce stocks and focus on receivables management. International cotton prices, however, will remain sensitive to the release of cotton by China from its cotton reserves, which estimates to be around 59% of global cotton stock at FYE16.

According to Ind-Ra, Chinese cotton reserves will directly impact the quantum of imports in that country and consequently the global stock levels outside China.

The cotton industry is likely to revive moderately in CY17 as exports to Vietnam, Pakistan, and Bangladesh grow. Vietnam is likely to increase its spindle capacity by 30% in FY17. The local cotton production in Pakistan and Bangladesh is unable to keep pace with the increasing demand for apparels from these locations, providing opportunities to Indian exporters.

However, the report said that in view of China reducing imports significantly and the moderating demand from the Indian spinning mills industry, it is believed that the demand for cotton will increase at a marginal rate in CY17 and the prices are unlikely to increase materially from the current levels.
 

Source :.financialexpress.com

Remove Duty On Coking Coal, Auction Ore To Rescue Industry: Indian Chamber Of Commerce

NEW DELHI: Seeking Centre's intervention in rescuing iron and steel sectors, which are facing multiple problems, industry body ICC has demanded removal of 6 per cent duty on coking coal, including 2.5 per cent import duty.

It has also emphasised the need to ramp up iron ore production to meet the needs of steelmakers.

"A duty of 2.5 per cent was imposed on coking coal in 2014. This has increased the cost of steel making in India that is impacting the competitiveness of manufacturing steel products in India," Indian Chamber of Commerce (ICC) has said in a letter to Finance Minister Arun Jaitley.

Urging the finance minister to remove this import duty on coking coal in the ensuing budget, ICC said imports of coking coal had been without any duty for several years before 2014.

Also seeking removal of clean energy cess, the body said a cess of Rs 200 per tonne on coking coal equates to 3.5 per cent duty.

"Coking coal is different from thermal coal and the clean energy cess should be applicable only on thermal coal and not coking coal. Thermal coal is used for providing heat and during the process, the carbon burns and produces carbon dioxide and hence there is logic of imposing clean energy cess on thermal coal," ICC Director General Rajeev Singh said in the letter.

Singh added that coking coal is used for producing metallurgical coke and during the process no carbon is burnt and hence no carbon dioxide is produced.

"There is no substitute to coking coal as a raw material for production of metallurgical coke which is required for steel making whereas in case of thermal coal alternate sources of energy such as hydro, wind, solar etc are available," the letter said.

In a separate letter to Steel Minister Narendra Singh Tomar, ICC said the iron ore production needs to be ramped up to rated capacity of mine.

"In Odisha, against a capacity of 90 million tonnes per annum for captive mines, the annualised production rate for the current year is 50 MTPA," the letter said.

It also demanded that the entire ore production should be sold through auction to avoid hoarding saying, "The total stockpile of iron ore is approx 128 MT, out of which Odisha has a stockpile of approx 77 MT."

Demanding sale of stock through auction, the chamber has alleged the prices being quoted by mining companies are abnormally high and unviable for steelmakers.

Also demanding reduction of floor price to cost of production during e-auction of iron ore, the Chamber has stressed that there is a need to fix fair floor price as though steel prices have fallen drastically, iron ore prices have not fallen correspondingly.

Also, it urged the government to finalise a roadmap for auction of non-captive iron ore mining leases.

 

Source :economictimes.indiatimes.com

Govt Should Take Measures To Curb Chinese Aluminium Imports: Debnarayan Bhattacharya

Debnarayan Bhattacharya, managing director at Aditya Birla Group company Hindalco Industries, is steering the company at a very difficult time. The company’s stock is down 52 per cent in the past year due to falling aluminium prices. In an interview, Bhattacharya tells Dev Chatterjee and Aditi Divekar about Hindalco’s measures to ramp up productions at its new plants to curtail cost of production. Edited excerpts:

How big a damage is cheap Chinese aluminium imports causing to the Indian market. What are the steps the industry is taking to tackle this?

There are almost 750,000 people who are directly or indirectly engaged in the aluminium industry in the domestic market. So, it is important that the government takes some measures to curb Chinese imports in the national interest. The Aluminium Association of India has, therefore, made representation to the government asking them to raise import duty on the metal to 15 per cent from five per cent at present. Currently, of the total domestic demand, about 50 per cent is being met by cheap imports from China, which is hurting domestic producers.

How do you see Hindalco Industries’ cost of production going ahead. Is there any room to lower it further?

There are several steps we are taking to keep our cost of production lower going ahead. Our ramp-ups at Mahan and Aditya aluminium smelters and Utkal refinery are going superb as efficiencies at each of these plants are hitting desired levels. Moreover, coal prices have come down globally and so there is some benefit towards power costs, although it could have been higher if the rupee was stronger. Given that Coal India is to increase its production, supply is expected to rise and hence we see energy costs coming down. Alongside, Hindalco has shut 42 per cent of capacity at the Hirakud plant since it was higly inefficient and could have been a cost burden.

What is your outlook on copper and aluminium businesses? Can you give an update on your capex plans for copper segment?

Treatment-and-refining charges have come down for 2016 compared to last year and this will have a negative impact on the copper business in the coming quarters. However, we are planning to go ahead with our capex in this business where we plan to set up a copper rod unit, which is a value-added product. We are yet to arrive what the fund size would be for this plant. For aluminium, I think prices have bottomed out but cannot say how it would go from here. Premiums for aluminium, however, have seen marginal improvement.

What is your outlook for Novelis, which has shown operational improvement in December quarter?

Novelis’ performance is improving quarter-after-quarter as demand from the auto sector has exceeded expectations. Demand from the beverage industry is also looking positive and so in the coming quarters we expect Novelis to do better.

 

Source :.business-standard.com

Essar Oil Says “Advanced Talks” With Rosneft On; No Comments On Aramco Stake Sale Talk

MUMBAI: Essar Oil's is in advanced talks with to sell 49 per cent stake to Russian energy major OAO Rosneft but the deal is likely to take more time. The company's management declined to comment of media reports of a likely stake sale to Saudi Arabian Oil Co (Aramco).

Billionaire brothers Shashi and Ravi Ruia have agreed to sell a 49 per cent stake in Essar OilBSE -0.15 % to Rosneft, providing the Indian company an assured supply of crude while its Russian counterpart obtains a foothold in Asia's third largest economy. While the companies did not disclose the

 

Source :economictimes.indiatimes.com

Renault India To Export Kwid, Ramp Up Production

CHENNAI: French automobile maker Renault would start exports of its car Kwid to South Asian Association for Regional Cooperation (SAARC) countries and the car's parts to Brazil from March onwards and grow over 100 percent in the domestic market, a top official of the group's Indian subsidiary said.

The company would sell more than 100,000 units in the domestic market in 2016, launch a revamped Duster model and ramp up production of its car Kwid to 10,000 units next month, he said.

"Currently we are not big exporters of cars. But starting next month we will be exporting Kwid's parts to Brazil and completely built units (CBU) of the car to SAARC countries. We are also exploring African countries," Sumit Sawhney, country CEO and managing director, Renault India told reporters here late on Tuesday.

Without putting a number to export target, Sawhney said the company has also opened a parts distribution centre here where auto components are sourced and shipped out to Renault's other vehicle plants.

According to him car segment priced less than Rs.8 lakh is logging growth for the industry.

On Renault India's domestic plans Sawhney said the company is on target to have five percent market share by 2017 as the current market share is around four percent.

He said the company will not only expand its distribution network to 240 by 2016 end but also introduce a mobile workshop.

"The mobile workshop will be a proper workshop that can service around six cars a day. Our Lodgy car has been remodelled as a workshop. These vehicles can reach smaller towns for servicing," he added.
According to him, Renault India has over 100,000 bookings for its Kwid model and is the number two in its segment.

 

Source :timesofindia.indiatimes.com

Govt Starts Probe Into Dumping Of Spandex Yarn By China, Others

India has started a probe into the alleged dumping of spandex yarn — used in the manufacturing of hosiery, swimsuits, and diapers — from China and three other countries.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated the investigation in the imports after Indorama Industries sought imposition of anti-dumping duty on the alleged cheap shipments.
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In a notification, the DGAD said prima facie sufficient evidence of dumping of the product originating or exported from China, South Korea, Taiwan and Vietnam exists to justify initiation of the anti-dumping investigation.

"...The Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... To determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," it said.

'Elastomeric Filament Yarn' is commonly referred to as Spandex or Elastane. In common parlance, these yarns are also referred to as 'Lycra' in the market even though it is a specific brand name.

Spandex yarn is mainly used to make garments that require great comfort and fit. It find applications in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diaper and waist bands, among others.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.

 

Source :business-standard.com

Rupee Trades Lower At 67.82 Against Us Dollar

Mumbai: The Indian rupee on Monday weakened against the US dollar amid caution ahead of key gross domestic product (GDP) data due after 5.30pm.

At 2.07pm, the rupee was trading at 67.82 a dollar, down 0.25% from its previous close of 67.65. The local currency opened and touched a low of 67.87 a dollar.

India’s GDP data for the third quarter (October-December) of 2015-16, to be released on Monday, will be a crucial input into the budget to be presented by finance minister Arun Jaitley on 29 February.

According to Bloomberg estimates, GVA (gross value added) will be at 7.1% from 7.4% in the September quarter, while GDP will be at 7.1% from 7.4% a quarter ago.

India’s benchmark equity index, BSE Sensex, was trading at 24,602.64 points, down 0.06% or 14.33 points. So far this year, the Sensex has lost over 5.8%

Year-to-date, the rupee weakened 2.5%, while foreign portfolio investors sold $1.72 billion from local equities and bought $468.30 million in debt.

The yield on India’s current 10-year benchmark bond stood at 7.829% compared with its Friday’s close of 7.821%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.95, down 0.08% from its previous close of 97.031.

Asian shares got off to a rocky start on Monday after mixed US jobs data helped sink shares on the Wall Street, but trade was thin with many regional markets closed for the Lunar New Year holiday.

US non-farm payrolls increased by just 151,000 jobs last month, falling well short of expectations for a rise of 190,000. But the unemployment rate fell to 4.9%, the lowest since February 2008, and wages rose, indicating some signs of underlying strength in the labour market despite the weak headline figure, Reuters reported.

Data released over the weekend showed China’s foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows, the report added.

Source :livemint.com/Money

India-Uae To Ink 16 Pacts; Investment, Oil And It Top Agenda

NEW DELHI: At least 16 pacts in a wide range of sectors like nuclear energy, oil, IT, aerospace and railways, facilitating billions of dollars of investment by UAE in India, are likely to be inked during Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayad Al Nahayan's visit here beginning Wednesday.

Ways to contain radicalism, stepping up counter-terrorism cooperation and dealing with the ISIS will figure prominently in talks Al Nahayan will have with Prime Minister Narendra Modi on Thursday, UAE Ambassador Ahmed Al Banna said.

A major focus of the three-day visit by the influential UAE leader, which comes around six months after Prime Minister Narendra Modi's trip to UAE, will be on stepping up economic ties.

Abu Dhabi, the UAE capital, has a sovereign wealth fund of about USD 800 billion. India has been eying the fund, parked with the Abu Dhabi Investment Authority, for its infrastructure sector and the envoy said there may be some announcements to this effect during Al Nahayan's visit.

"We have on hand around 16 agreements for cooperation between different ministries and authorities. Out of 16, almost 12 have been finalised and ready for signature. Hopefully all the 16 will be signed," said Al Banna.

The envoy said the agreements will lead to "huge investment portfolio" in diverse areas including renewable energy, oil and gas and some other major sectors.

The pact on nuclear cooperation will provide for peaceful use of atomic energy as research and development in the area. UAE has similar pact with France and some other countries.

India is UAE's number one trading partner and the annual trade currently stands at around USD 60 billion. UAE, a major player in the Gulf region, is a strategically important country for India.

The country is home to around 2.6 million Indians who constitute nearly 30 per cent of its population. It was the sixth largest supplier of crude oil to India in 2014-15.

Al Banna said Modi's visit to his country, after a gap of 34 years by an Indian Prime Minister, has opened a new path in strengthening ties and Al Nahayan's trip will further build on it.

"It (the visit) will reinforce the ongoing relationship and will take us to the next (level) that both sides are looking at which is strategic cooperation, strategic coordination and strategic relationship," the envoy said.

Identifying terrorism as a major threat facing the world, the envoy said both India and UAE are increasing security and counter-terrorism cooperation to deal with the menace.

On the issue of checking radicalism, he said India and UAE will work "hand in hand to fight them. Yes there will be some cooperation on this".

Source :economictimes.indiatimes.com

India Sets Floor Price For Steel Imports To Stem Flow From China

India set a floor price for imports of steel products to deter countries such as China from undercutting local mills, the first time it has taken such a step in over 15 years even as the country remains the world’s only major growing steel market.

Top Indian steel makers such as JSW Steel, Tata Steel Ltd, Jindal Steel & Power Ltd and Kalyani Steels have been lobbying the government to take more steps to protect their margins after a hike in the import duty last year failed to cut shipments from China.

“The implementation of the minimum import price will give stability to the local steel industry,” Steel and Mines Minister Narendra Singh Tomar said. “This is an important step towards the success of ‘Make in India’ (manufacturing push).”

The duty on various steel products ranges between $341 per tonne and $752 a tonne, the government said in a statement.(bit.ly/1ocN9Lk)

Indian steel companies, shares in many of whom rose on Friday in anticipation of the measure, welcomed the move but said more needs to be done, such as raising the import duty further to 25 percent.

“This measure will ensure a level playing field to Indian steel industry which has been adversely affected by dumped imports from various sources,” Shivaramkrishnan, chief commercial officer of Essar Steel India, told Reuters.

“We are thankful to the government of India and hope this will suitably address the concern of surging cheap imports.”

India is the third largest steel producer in the world with a total installed capacity of 110 million tonnes. But the industry says it has seen a hefty squeeze in margins due to an onslaught of cheap imports from China, as well as Russia, Japan and South Korea.

Imports of steel surged by 22.8 percent in December 2015 over the previous month and the country’s trade minister had called the recent fall in China’s yuan a “worrying development” that could have pushed up inbound shipments further.

China produces nearly half the world’s 1.6 billion tonnes of steel, and exported more than 100 million tonnes of the alloy last year, more than four times the 2014 shipments from the European Union’s largest producer, Germany.

The floor price on steel imports will be valid for six months.
Source: Reuters (Reporting by Sankalp Phartiyal, Krishna N. Das and Promit Mukherjee, editing by David Evans)

 

Source :.hellenicshippingnews.com