Canada Hopes To Export More Pulses To India On Better Growth Prospects

REGINA (CANADA): Jim Etter, a pulses farmer from Saskatchewan in CANADA, has been keenly following the monsoon's progress in India. After two years of good business, he expects markets to soften in the second half of 2016 with news of good rains in India. However, he is optimistic that with a growing economy and increasing purchasing power, Indians will eat more pulses and he will get the opportunity to sell more.

India is the biggest importer, consumer and producer of pulses with consumption touching 22-23 million tonne annually. It imports 3-4 million tonnes of the commodity from Canada, Australia, Myanmar and some African countries to meet the demand-supply gap. In 2015, Canada exported approximately $1.5 billion (2.4 million tonne) worth of pulses to India.

Like Etter, other farmers, traders and companies across Canada who grow, process and trade pulses for India's domestic market are closely monitoring the country's weather conditions, upcoming tenders to import pulses and the Indian government's policy on creating buffer and ensuring higher support prices for farmers.

"I have doubled the acreage under lentil this year to 4,500 acres from last year's 2,300 acres due to the good prices I got," said Etter, who farms on 7,000 acres in Richardson village, 10 km from Regina city in Saskatchewan. The farmer has 8,500 tonne of storage capacity in his farm and is looking to directly export pulses to India.

Farmers in Canada grow red lentil (masur), yellow peas (matar), green peas and green lentil for the Indian market. They are also trying to increase production of 'kabuli chana' and 'desi chana', looking at the market demand.

Generally, farmers who grow pulses in Canada sign contracts with large processors from Cargill to Glencore prior to seed plantation. Saskatchewan and Alberta are the key growing regions.

   
"India is a huge market with annual demand of pulses at 23 million tonne, which is annually growing by 10%. If weather remains good in India, pulses prices may come back to the 2013 level, which will further lead to a rise in demand for Canada produce," said Kanagaraj C Selvraj from WA Grain.

Similarly, Carl Potts, director, Saskatchewan Pulse Growers, said the area under pulses in his state has doubled and there is opportunity for a further 25% growth in acreage. "In India, a farmer has the luxury of growing pulses in kharif and rabi seasons, unlike in Canada where we only have one season. In that limited time frame, we are aiming to grow as many pulses varieties for the Indian market," he said.

Looking at the growing acreage, pulses handling company Agrocorp Processing is now planning to add more capacity to meet India's demand. Patrick Pappenfoot, GM, Agrocorp, said they are planning to add 2,200 tonne capacity to their unit in Moose Jaw in Saskatchewan from the current 8,000 tonnes. "This expansion will help us to handle more pulses varieties and ship them to India and China," he said.

Farmers said pulses give them better returns compared to wheat and canola as the input cost-usage of fertilizer and herbicide is less.

 

Source:economictimes.indiatimes.com

India's Garment Exports May Hit $ 20 Billion In Fy17

 India's garment export is expected to rise to $ 20 billion during the current fiscal, helped by the new initiatives announced by the government for the sector, an ind$try official said today.

The Union Cabinet last week approved a Rs 6,000 crore package for textiles and apparel sector with an aim to create one crore new jobs in three years and attract investments of $ 11 billion with an eye on $ 30 billion in exports.

"India's garment exports, estimated at $ 16.80 billion now, is expected to reach $ 20 billion during the current fiscal. The special package announced by the government will not only help in attracting large investments but also enhance production capacity," Clothing Manufacturers Association of India (CMAI) president Rahul Mehta told reporters here.

The incl$ion of state-level taxes in the computation of duty drawback will provide a major relief to the exporting segment, Mehta said.

However, the prevailing downturn in the global economy continues to adversely impact India's garment ind$try. During the first quarter ended June 2016, the ind$try may see a five per cent decline in exports. Total exports of apparel from India stood at around $ 4 billion in April-June 2015.

The domestic garment ind$try also faces dull market conditions and may see flat growth or a two per cent decline in consumption in the quarter ended June, 2016, Mehta said.

CMAI is organising a mega trade show - 'The National Garment Fair' - on July 13-15 in Mumbai. The event will see participation from 812 brands and nearly 40,000 retailers from across the country are expected to visit the three-day B2B fair, Mehta said.

Commenting on Britain's exit from EU, Mehta said there may not be an immediate fallout of the referendum on the b$iness front, but there could be a period of uncertainty and conf$ion for some time.

He said there may not be any dramatic impact on India's garment exports to the UK or EU. However, a lot would depend on the exact agreements and treaties to be worked out by both sides, especially on tax implication on movement of goods between the two geographies.

Mehta demanded aggressive follow-up for Free Trade Agreement (FTA) with EU and other countries. Post-Brexit, he felt, there could be a further delay in the signing of the FTA with EU.

The apparel ind$try also sees huge export potential in Iran, which has a $ 16-billion market and nearly 60 per cent of the demand is met through imports, he added.

 

Source:economictimes.indiatimes.com
 

Rs 50-Crore ‘Jewellery Park’ Set To Come Up In Mumbai In Bid To Boost Exports

NEW DELHI: A Rs 50-crore 'jewellery park' is set to come up in Mumbai as part of the central government's two-pronged efforts to boost exports that include common facilitation centres for diamond jewellery workers in small units where they will be able to share expensive equipment on pay-per-use basis.

The jewellery park, for which the state government will provide land, will be more of a manufacturing cluster where facilities for training and testing including laboratories will be present in one area, officials said. "A comfortable working environment will improve productivity of the karigars (artisans), make the product price more competitive and increase profitability," an industry expert said, requesting not to be identified.

He said the proposed jewellery park will generate employment for 80,000 people. Under the second scheme, the government has identified four locations in Gujarat where any artisan engaged in polishing and adding value to raw and uncut diamonds will be able to use expensive machinery.

"Expensive machines are required in this process which small units can't afford to buy. Also, these machines are not used all the time. So, the karigars can pay money and use them as per their convenience," said another official.

The government has allocated Rs 45 crore for setting up these centres, he said. The initiative comes at a time when India's jewellery sector faces a crisis of skilled labour, inadequate infrastructure and lack of technology. Reduced demand from the overseas markets led to a decline in exports of gems and jewellery to nearly $32 billion in 2015-16 from $36.2 billion in the previous fiscal

The Gems and Jewellery Export Promotion Council has asked the government to permit goods to enter the country on consignment basis for manufacturing, reasoning that this will create additional jobs in the sector. This will also bring India on a par with China since diamond traders from other countries send goods to China for this purpose.

 

Source:economictimes.indiatimes.com

Coal Imports Fell 5 Per Cent In April-May: Coal Secretary Anil Swarup

NEW DELHI: India's annual coal imports fell by about 5 percent in April-May to 35.85 million tonnes on increased local production, Coal Secretary Anil Swarup said in a Twitter post.

The country imported 37.72 million tonnes in April-May 2015, he said.



The government saved 42.85 billion rupees ($631.21 million) equivalent of foreign exchange due to the lower imports in the first two months of the fiscal year to March 2017, Swarup said

 

Source:economictimes.indiatimes.com

Rupee Rises Most In Over 3 Weeks, Closes At 67.69 Against Us Dollar

Mumbai: The Indian rupee on Wednesday logged its biggest single-session gain against the US dollar in over three weeks, as a rebound in global equities and currencies buoyed sentiment.

The home currency closed at 67.69, up 0.40% from its previous close of 67.95, posting its maximum gain since 6 June. The local currency opened at 67.80 a dollar and touched a high of 67.61, a level last seen on 23 June.

Asian currencies extended the rally post-Brexit vote battering, with traders pushing back expectations for any near-term rate increase by the Fed.

South Korean won rose 0.96%, Malaysian ringgit 0.91%, Singapore dollar 0.37%, China offshore 0.36%, Indonesian rupiah 0.24%, Taiwan dollar 0.22%, Japanese yen 0.1%, Philippines peso 0.1% and Thai baht added 0.06%.

India’s benchmark Sensex index rose 0.81%, or 215.84 points, to close at 26,740.39. So far this year, the Sensex is up 2.38%.

The government will issue fiscal deficit data for the month of May on 30 June. Fiscal deficit in April came in at Rs.1.37 lakh crore, which is 25.7% of the Budget estimate for 2016-17.

So far this year, the rupee is down 2.26%, while foreign institutional investors (FIIs) have bought $2.75 billion in equity and sold $1.98 billion in debt markets.

The 10-year bond yield has fallen in 10 out of 12 trading sessions. On Wednesday, the yield closed at seven-week low of 7.444%—a level last seen on 12 May—compared with Tuesday’s close of 7.452%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.881, down 0.38% from its previous close of 96.245.

 

Source:.livemint.com

India Plans To Import 500,000 Tonnes Of Corn To Overcome Shortage

 India is considering importing an extra 500,000 tonnes of duty-free corn to overcome a shortage after a second straight drought cut output, a government source said on Wednesday.

India is traditionally a major corn exporter to Southeast Asia, but higher local prices because of the drought and rising domestic demand have halted exports and forced it to import.

In its first international tender, government-backed trader PEC awarded a contract to South Korea's Daewoo International to supply 250,000 tonnes of duty-free yellow non-genetically modified corn.

"Indian corn prices have shot up massively and actual users have asked us to facilitate corn imports. That's why the talk of another 500,000 tonnes of imports has started," the official said.

Local corn prices have jumped about 15 per cent so far in June.

The government source, who was not authorized to speak to the media, also said that India was likely to scrap its latest tender to import 50,000 tonnes of corn due to the high price quoted by the sole bidder.

The lowest offer in the tender was $254.55 a tonne on a cost and freight (c&f) basis for shipment to the Adani Tuna terminal in the port of Kandla followed by $255.30 a tonne c&f for shipment to other terminals in Kandla.

The agency was comfortable with price around $230 c&f, said the official, adding "Sourcing non-gm corn is very difficult and will continue to be difficult until at least September when the new crop will arrive in Europe."

India allows imports of only non-genetically modified varieties.

Indian farmers grow corn twice a year. The winter crop is planted in October, with harvests in March and April. The summer crop planting has started but supplies will become available only from end September.

"Supplies will remain limited until we get new crop. India has to import to check local prices," said a Mumbai-based dealer with a global trading firm.

"Quality of winter crop is not very good. Starch manufactures can not use a large part of the harvest. They will be the main buyers of overseas corn," the dealer said.

 

Source:economictimes.indiatimes.com
 

Fuel Consumption Grows 6.7% In May, Import Dependence Goes Up To 81.9%

 India's fuel consumption grew 6.7% in May over that a year ago, reflecting greater use of cars and increased air traffic in an expanding economy, while crude oil production fell 3.3%, increasing import dependence to 81.9% from 81.3%.

In May, India consumed 9.4% more diesel and 16.7% more petrol than it did a year ago, the latest data released by the oil ministry's Petroleum Planning & Analysis Cell shows. Aviation turbine fuel consumption grew 20% as lower prices and holiday travels boosted air traffic. Except for kerosene and naphtha, the consumption of all other petroleum products went up during the month.

Domestic output of oil and gas, however, did not pick up. In May, local crude oil production declined 3.3% to 3.1 million metric tonnes from a year ago. Natural gas production fell 6.9% to 2,656 million metric standard cubic meters. Increasing gas demand in the country was met by increased import of liquefied natural gas. India imported 2082 MMSCM of LNG, 43% more than it did a year ago.

The government has set a target to bring down oil imports to 67% of total consumption by 2022.

According to the Petroleum Planning & Analysis Cell's estimate, India's crude oil import will increase 2% to $66 billion in 2016-17 from $64 billion in the previous financial year considering crude oil price of $45 per barrel for the Indian basket and an exchange rate of Rs 67 to a dollar for the remaining part of this fiscal.

The prices of Brent crude averaged $46.88 per barrel in May, compared to $41.48 in April. The Indian basket crude oil averaged $44.97 per barrel in May, significantly higher than $39.85 a barrel in the previous month.

 

 

Source:economictimes.indiatimes.com

Rupee Down 11 Paise Against Dollar In Early Trade

The rupee depreciated by 11 paise to 67.42 against dollar in early trade on Tuesday due to sustained demand for the American currency from importers amid foreign fund outflows.

Besides, a weak opening in the domestic equity market weighed on the domestic unit, dealers said.

However, weakness in the dollar against major world currencies in the global market, limited the rupee fall.

The domestic unit ended lower by 23 paise on Monday to close at an over two-week low of 67.31 on heavy bouts of dollar demand amid uncertainty in the wake of RBI governor Raghuram Rajan’s decision against pursuing a second stint.

Meanwhile, the benchmark BSE Sensex fell 82.52 points, or 0.31%, to 26,784.40 in early trade.

Source:- hindustantimes.com

Costly Local Cotton Forces Mills To Import

Textile spinning mills in the region have started importing cotton as prices of the commodity are ruling higher in the local market compared to the international market. While the landed cost for imported cotton works out to around 41,000 per candy (a candy is 355 kgs), the popular Shankar-6 cotton (Indian Raw Cotton) grown mostly in Gujarat costs about 43,000 per candy including transportation costs.

"Mills have started buying West African cotton as costs are lower," said K Selvaraju, secretary general, Southern India Mills' Association (SIMA). Two leading textile mills in south India have bought about 2 lakh bales (a bale is 170 kgs) each of West African cotton in the past 2-3 months, industry officials said.

"The cost of imported cotton is lower by at least 2,000 per candy. Moreover, the quality is also much better," a top official with a leading textile mill said. Many spinning mills, including smaller ones with a capacity of 10,000 spindles are importing cotton now, he said.

"With imported cotton, mills get better credit facilities and lower interest rates. Yarn productivity is also good when they use imported cotton," industry officials said. Prices of Shankar-6, which were ruling at about 34,000 per candy, has jumped to around 40,000 per candy now.

While local cotton prices have surged by 12.9% between April and mid-June, they have increased by only 6% in the international market. "This (price rise) is because of hoarding by some traders. Enough cotton is available in the country," industry officials said.


High prices in the domestic market would push up cotton imports in the current season (October-September). While the Cotton Advisory Board (CAB), which comprises representatives of the textile industry, trade, ginners and government officials, had projected imports of around 11 lakh bales for 2015-16 season, it is likely to cross 15 lakh bales, industry officials said.

Latest Comment
Politics in everything-the nation is still hold at ransome by defeated Khangi hoarders be it on cotton or pulses.Sekhar B

Textile mills in the country consume around 25 lakh bales of cotton per month. Mills in the south alone use about 10 lakh bales a month. With area under the crop declining on the back of a drought in Maharashtra and Karnataka and pest attacks affecting output in Gujarat, Punjab and Haryana, cotton production would fall to a five-year low of 352 lakh bales for the 2015-16 season, CAB estimated in February this year.


Industry officials said that output could drop to 340 lakh bales. CAB had pegged output at 365 lakh bales during its first assessment for the 2015-16 season in November. The area under cotton is projected to have fallen 7.3% or 9.4 lakh hectares to 118.81 lakh hectares during the season.

Source:timesofindia.indiatimes.com

Government Begins Mapping Region-Specific Exports For Bigger Share Of Global Trade

NEW DELHI: The government wants to capture greater market share in global trade and has kick-started an exercise for mapping region specific exports to achieve this aim. It has identified the pharmaceutical sector as an "export commodity with high potential" to garner higher market share in Europe and auto components to drive exports growth in South America.

"It is an initial thought and discussions are on to increase India's market share in global exports through products that are expected to grow at a high pace in next four years," said an official, who did not wish to be identified. The move comes at a time when India's exports have been declining for the past 18 months. India's exports in 2015-16 amounted to $261.1 billion, down 15.85% from that in the previous fiscal.

In the two preceding years, the country's share in world exports remained flat at 1.7%. The government has set a target of increasing exports to $900 billion by 2018-19 and expanding the country's share of global exports to more than 3%. The exercise, which began a few days ago, is in line with Foreign Trade Policy of 2015-20 which seeks to support 852 tariff lines that were not supported earlier. These include fruit, vegetables, dairy products, oil meals, Ayush and herbal products, paper and paper board products.

Under this, the government has asked the export promotion council for pharmaceuticals to prepare a forecast of possible compounded annual growth rate in the next four years taking 2015-16 as the base year of India's pharmaceutical exports to Europe since export commodities with high potential should grow faster than the European market in the next four years ending 2019-20. This means exporting companies will have to identify possible products in each of the categories such as bulk drugs, formulations, Ayush and herbal products, taking into account market dynamics such as patent expiries and the possible expansion of the generic sector of Europe.

 

 

Source:economictimes.indiatimes.com

Fuel Consumption Grows 6.7% In May, Import Dependence Goes Up To 81.9%

NEW DELHI: India's fuel consumption grew 6.7% in May over that a year ago, reflecting greater use of cars and increased air traffic in an expanding economy, while crude oil production fell 3.3%, increasing import dependence to 81.9% from 81.3%.

In May, India consumed 9.4% more diesel and 16.7% more petrol than it did a year ago, the latest data released by the oil ministry's Petroleum Planning & Analysis Cell shows. Aviation turbine fuel consumption grew 20% as lower prices and holiday travels boosted air traffic. Except for kerosene and naphtha, the consumption of all other petroleum products went up during the month.

Domestic output of oil and gas, however, did not pick up. In May, local crude oil production declined 3.3% to 3.1 million metric tonnes from a year ago. Natural gas production fell 6.9% to 2,656 million metric standard cubic meters. Increasing gas demand in the country was met by increased import of liquefied natural gas. India imported 2082 MMSCM of LNG, 43% more than it did a year ago.

The government has set a target to bring down oil imports to 67% of total consumption by 2022.

According to the Petroleum Planning & Analysis Cell's estimate, India's crude oil import will increase 2% to $66 billion in 2016-17 from $64 billion in the previous financial year considering crude oil price of $45 per barrel for the Indian basket and an exchange rate of Rs 67 to a dollar for the remaining part of this fiscal.

The prices of Brent crude averaged $46.88 per barrel in May, compared to $41.48 in April. The Indian basket crude oil averaged $44.97 per barrel in May, significantly higher than $39.85 a barrel in the previous month.

Source:economictimes.indiatimes.com
  

Government Team Leaves For Mozambique To Explore Pulses Imports

NEW DELHI: To tame spiralling prices of pulses, government today sent a high-level delegation to Mozambique to explore short and long-term measures to import the commodities on a government-to-government basis.

Retail pulses prices have shot up as high as Rs 200 per kg owing to a seven million tonnes shortfall in the domestic output following two consecutive drought years.

"A high-level delegation led by Secretary, Consumer Affairs, Hem Pande today left for Mozambique. The delegation will explore both short-term and long-term measures to import pulses from Mozambique on a government-to-government basis," the Consumer Affairs Ministry said in a release.

The delegation comprises senior officials from the Commerce and Agriculture Ministries as well as from state-run MMTCBSE -1.17 %, it said.

Already, another delegation is in Myanmar to discuss availability of pulses for import from there, it added.

The talks with Myanmar, which has about 50,000 tonnes of tur, are in advanced stage but the southeast Asian country is apprehensive of committing pulses supply to India in the absence of adequate infrastructure, according to traders.

 
Unlike India, Myanmar does not have public trading agencies like MMTC and STC, they added.

Besides Mozambique, India is also exploring options in other African nations like Malawi to lease farms for growing pulses to meet India's demand.

A decision to explore pulses import on a government-to- government basis was taken last week in a meeting chaired by Finance Minister Arun Jaitley.

Pulses prices have been shooting up despite several government measures including imposition of stock holding limits on traders, creation of buffer stock up to eight lakh tonnes and ban on chana futures, among others.

As per the industry data, private traders have so far imported three million tonnes of pulses, which are expected to arrive between August and December.

Last year, private import of pulses were at a record 5.79 million tonnes.

Production of pulses is estimated to have declined to 17.06 million tonnes in 2015-16 crop year (July-June) due to two consecutive years of drought, while the demand stands at 23.5 million tonnes.

 

Source:economictimes.indiatimes.com

Government Team Leaves For Mozambique To Explore Pulses Imports

NEW DELHI: To tame spiralling prices of pulses, government today sent a high-level delegation to Mozambique to explore short and long-term measures to import the commodities on a government-to-government basis.

Retail pulses prices have shot up as high as Rs 200 per kg owing to a seven million tonnes shortfall in the domestic output following two consecutive drought years.

"A high-level delegation led by Secretary, Consumer Affairs, Hem Pande today left for Mozambique. The delegation will explore both short-term and long-term measures to import pulses from Mozambique on a government-to-government basis," the Consumer Affairs Ministry said in a release.

The delegation comprises senior officials from the Commerce and Agriculture Ministries as well as from state-run MMTCBSE -1.17 %, it said.

Already, another delegation is in Myanmar to discuss availability of pulses for import from there, it added.

The talks with Myanmar, which has about 50,000 tonnes of tur, are in advanced stage but the southeast Asian country is apprehensive of committing pulses supply to India in the absence of adequate infrastructure, according to traders.

 
Unlike India, Myanmar does not have public trading agencies like MMTC and STC, they added.

Besides Mozambique, India is also exploring options in other African nations like Malawi to lease farms for growing pulses to meet India's demand.

A decision to explore pulses import on a government-to- government basis was taken last week in a meeting chaired by Finance Minister Arun Jaitley.

Pulses prices have been shooting up despite several government measures including imposition of stock holding limits on traders, creation of buffer stock up to eight lakh tonnes and ban on chana futures, among others.

As per the industry data, private traders have so far imported three million tonnes of pulses, which are expected to arrive between August and December.

Last year, private import of pulses were at a record 5.79 million tonnes.

Production of pulses is estimated to have declined to 17.06 million tonnes in 2015-16 crop year (July-June) due to two consecutive years of drought, while the demand stands at 23.5 million tonnes.

 

Source:economictimes.indiatimes.com

Rupee Trades Lower At 67.27 Against Us Dollar

The Indian rupee on Tuesday fell, while 10-year bond yield rose as a surprise spike in retail inflation spurred concerns that the Reserve Bank of India (RBI) may wait more for cutting interest rates. Fall in global markets ahead of the US Federal Reserve meeting and the UK referendum also dampened sentiments.

The rupee opened at 67.20 a dollar and touched a low of 67.29. At 2.03pm, the home currency was trading at 67.27, down 0.20% from its previous close of 67.14.

India’s 10-year bond yield was trading at 7.538%, compared with Monday’s close of 7.524%.

Most Asian currencies were trading higher. Japanese yen was up 0.397%, Hong Kong dollar gained 0.049% and South Korean won rose 0.022%. Meanwhile, Philippines peso was down 0.591%, Indonesian rupiah 0.635%, Taiwan dollar fell 0.068% and Malaysian ringgit fell 0.0431%.

India’s benchmark Sensex index fell 0.49% or 128.65 points to 26,268.12. In the last four sessions, Sensex fell 2.68% or 752.54 points. So far this year, Sensex is up 0.69%.

The wholesale price inflation (WPI) rate for May rose 0.79% its highest since October 2014. According to a Bloomberg poll of analysts, WPI will be at 0.44% for May compared to 0.34% in April.

Fed officials will meet on 14-15 June to discuss policy, while the Bank of Japan is likely to stay on hold at its 16 June meeting. The UK referendum on its European Union membership is due on 23 June.

So far this year, the rupee has weakened 1.35%, while foreign institutional investors (FIIs) have bought $2.81 billion from the local equity market and sold $1.17 billion in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.686, down 0.34% from its previous close of 94.362.

Source: livemint.com

Why Brexit Could Be A Bigger Risk For India Than A Jump In Oil Prices And A Fed Rate Hike

On 23rd June, Britain will vote whether it wants to remain a part of the European Union (EU), or leave. A vote to leave the EU would start a long and complicated process that would result in a fundamental change in the UK's relationship with other members of the EU.

There are pros and cons for both parties. Increasing restrictions and introduction of political borders increases the cost of trade and services. Financial Times estimates the GDP hit to be at 2-7% with most of the losses front-loaded if Britain leaves the EU and fails to strike a deal or reverts into protectionism.

On the other hand, as per an independent think-tank Open Europe, if the UK stays with the EU and manages to strike liberal trade agreements with the members, the benefits would be 1.6% of the GDP by 2030. The EU remains the largest market for Britain's exports, constituting 40-45% of its exports. The UK's primary goal is likely to be to retain access to the EU's internal market but it will find it difficult to gain liberal trade terms from the EU if it chooses to exit the EU. Economic factors will hurt both the parties. Britain is a strong member of the EU and losing Britain will weaken the EU, both economically and politically.

A Brexit could trigger capital flight from Britain. It could have a profound effect on London's real estate market, among the most vibrant in the world. Stricter regulations will curb capital flows both from within the EU and outside it (read China & Russia). Brexit will only compound inflation and the sterling's worries.

Given London's status as a global nerve centre outside New York, BREXIT could weaken the EU as far as it share in world trade and commerce is concerned. For Britain, separation from the EU will mean stricter immigration laws. Pertinent to note that Britain has benefitted from the influx of skilled immigrants. The number of EU workers in Britain is now estimated at roughly 2.15 million. As per the OECD, immigration accounts for half of the UK's growth since 2005 and immigrants have filed 2.2 million jobs since that period. Stricter immigration laws could make it difficult for EU skilled workers to work in UK.

Also read: Indian stocks that are getting jittery about Brexit vote

Likely beneficiaries of Brexit: In my view, dollar assets will emerge as the biggest beneficiaries of Brexit. Events like these are usually followed by periods of volatility and economic pain. Given the current state of global economy, investors will be quick to rush to safer havens. Few asset classes can cope with capital flows of this magnitude. I believe that capital will flee to near-dated US Treasuries in the short term and will ultimately find its way into other dollar assets in the medium to longer term.


Impact on India: As far as India is concerned, in the near term it will heighten global volatility thereby impacting capital flows and in medium term we will most likely be impacted through currency exchange. India has a substantial trading corridor with EU. Any material depreciation of the Euro/Pound could lead to increased headaches for India in a sluggish export environment. Indian businesses have a material presence in both the UK & Europe. As per The Guardian, there are more than 800 Indian-owned businesses in the UK, with more than 110,000 employees. Besides, Brexit, could also endanger the flow of investment and personnel by diminishing Britain's role in providing access to Europe.

To conclude: Brexit, if it happens, will have implications; UK Real estate prices may correct (on account of thinner capital flows from EU), inflation will climb on expensive imports, London's financial centre status may get threatened if money flow and settlements are hampered. Goldman Sachs estimates 15-20% drop in the sterling as a response to Brexit. The long-term economic impact of Brexit is hard to discern, but the short term disruption while the UK negotiates and renegotiates is only likely to be bad news for both sterling and Euro assets.

It is difficult to gauge the precise medium to long-term economic impact of Brexit on both the parties concerned. However, the outcome of Brexit in my view is the biggest macro risk affecting fund managers and investors - bigger than oil price or even the Fed rate hike. Having said that, at this moment, it is almost impossible to predict the outcome. We will have to wait till June 23rd to know the future of EU and Britain.

 

Source:economictimes.indiatimes.com

Latin America Pips Africa To Be India’S Largest Auto Export Market

NEW DELHI: Latin America, the furthest export market for India, has overtaken Africa to become the largest for vehicles shipped out of India. As much as a quarter of vehicles exported out of India in value terms went to Latin America in the last financial year, compared with 21% the year before, latest industry data show. Exports to Africa fell for the first time in a decade.

India exported buses, trucks, cars, motorcycles and chassis fitted with engines worth $8.86 billion (Rs 59,360 crore) in the year ended on March 31, 2015. While overall vehicle exports remained almost flat, shipments to Latin America jumped nearly 19% to $2.26 billion. There is a huge logistics cost involved in shipping vehicles to Latin America, some 15,000 km away from India.

But India's highly costeffective manufacturing capabilities and government incentives are helping offset some of the impact, say industry experts. Some auto makers that weren't doing well in the domestic market were only too happy to utilise the opportunity offered by a market with profiles similar to India, as it allowed them to keep their factories running here.

"India is known for its frugal engineering, which enables automobile makers to manufacture vehicles here at competitive costs," said Puneet Gupta, associate director at consultancy firm IHS Automotive.

"Of course, there are freight costs involved in shipping vehicles to Latin America. But if you look at it holistically, exports help companies improve capacity utilisation, better productivity of hired workers, gain economies of scale and meet commitments made to suppliers." Europe continued to totter.

Though the share of vehicle exports to the European Union improved marginally to 14% from 13% the previous fiscal year, it was still a far cry from fiscal 2010, when the continent accounted for as much as 47% of total value of India's vehicles exports. In percentage terms, Africa accounted for 23% of the value in fiscal 2016, compared with 29% the year before.

  Falling oil and commodity prices, which helped auto makers improve sales and profitability in the Indian market, are blamed for the distress in Africa, where commoditydependent economies such as Ethiopia, Angola, Algeria and Nigeria are hit badly by the price plunge. "The fall in crude oil prices has hit the dollar revenue of many countries in Africa.

They now prefer to use dollar for import of essential items," said Sugato Sen, deputy director-general of the Society of Indian Automobile Manufacturers. "We have requested the government to allow rupee trade so that exports to these countries improve."

Even as the African market proved to be a challenge, the depreciation of the rupee pushed auto makers to explore markets in Latin America. That, at a time when the Indian government is working towards developing Latin America as a bigger market for the country's exports to offset slowing or shrinking shipments to its traditional markets.

European car maker Volkswagen is among the largest exporters out of India to Latin America. Of the 70,000-odd vehicles Volkswagen India shipped out in 2015, as much as 63,000 — mostly the Polo and Vento — made their way to Latin America. The madein-India Vento, which replaced Jetta Classico, has been well accepted in Latin American markets, especially Mexico.

It was second on the list of top selling cars in Mexico in the first six months of 2015, show data available with VW India. Andreas Lauermann, managing director at Volkswagen India, said the growing demand from Latin America has helped the company offset the decline in Africa.

Hyundai, which is the largest car exporter from India, shipped more than 49,000 cars in 2015 to 32 countries in Latin America. Latin America, in fact, accounted for 29% of the company's total exports out of India last year. Its made-in-India portfolio in that market comprises the Eon, i10, Grand i10, XCent, i20 Elite, i20 Active and the Creta.

General Motors ships the Chevrolet Beat from India to Latin America, while rival Ford exports the Figo and Figo Aspire. Suzuki Motor sells the Ciaz made by Indian unit Maruti SuzukiBSE -0.75 %. Incentives offered by the Mexican and Indian governments help in mitigating logistics expenses.

Lauermann of Volkswagen explained: "Mexico offers exemption of duties on imported cars for a number equivalent to 10% of the total production of cars done by the brand in Mexico. So, number of cars up to 10% of Volkswagen production in Mexico can be imported by Volkswagen into Mexico, without having to pay import duties on it. Add to that the good cost and quality position of our manufacturing in India, and it forms a good business case."

 

Source:economictimes.indiatimes.com

Rubber Growers Association Opposes Move To Import Rubber Under Trq

KOCHI: Indian Rubber Growers Association has voiced concern at the move initiated by the consuming industry to change the Exim policy on rubber including import at reduced rate of duty under tariff rate quota (TRQ).

Any move to reduce the import duty further will bring down the price and production sharply, said association general secretary Siby J Monippally.

Growers are getting Rs 130 per kg now but the cost of production is Rs 160 per kg. Imports under TRQ could be termed as a disaster for the struggling growers. "It is true that there is shortage of natural rubber in the country. But the Indian rubber growers are capable of producing the required quantity for the consuming sector, if prices are fair and reasonable," he said.

The association called for a conducive atmosphere which is win-win for all should be evolved through consensus among stakeholders for the better future of Indian rubber industry. If imports are made more liberal by change in the policy it will put an end to rubber cultivation in India, which was developed over a period of 60 years.

The non-tariff measures like port restriction and six months stipulation for exports are not restricted in nature since 90 per cent of the imports are through Mumbai and Chennai port. Shorter export obligation will hasten exports and restrict flooding of imported NR in the country, Monippally said.

Any move to change the Exim policy on rubber including Imports under Tariff Rate Quota (TRQ) is unwarranted and against the interest of the Indian rubber industry particularly the small growers.

 

Source:economictimes.indiatimes.com

India's May Vegoil Imports Drop By 25 Per Cent From Earlier Year

MUMBAI: India imported 1.024 million tonnes of vegetable oil in May, down 25 percent from a year earlier, as demand fell during the summer season amid higher inventory at ports, a leading trade body said on Tuesday.

India, the world's largest buyer of vegetable oils, shipped in 8.6 million tonnes during the first seven months of the oil year that started Nov. 1, up 10 percent from a year earlier, Mumbai-based Solvent Extractors' Association of India said in a statement.

 

 

Source:economictimes.indiatimes.com

India's Gas Importers Benefiting From Easing Prices: Nomura

SINGAPORE: India's leading gas importers are benefiting from easing prices of Liquefied Natural Gas prices with promises of strong profits in the coming months, Japanese financial services firm Nomura has said in a report.

"After having performed weakest in the past year, GAILBSE -1.65 % looks set to stage a strong comeback," Nomura said in its global market research report released yesterday.

GAIL is benefiting from lower natural gas price in the domestic market and imports as well as the recent strength in the petrochemical product prices.

It has benefited from the revised Liquefied Natural Gas (LNG) contract prices with RasGas of Qatar, according to the report, which estimates the price at $5 per million British thermal Unit (mmbtu), down 60 per cent on the year.

Comparative spot LNG prices at $4-4.5/mmbtu are even lower. It also expects GAIL to renegotiate its LNG import contracts based on Henry Hub prices in the US. Saying the worst is over for GAIL, the report forecast 79 per cent increase in the company's Earnings Per Share growth for fiscal year 2017 and 30 per cent in 2018.

It expects GAIL earnings to decline by 27 per cent for this year, having recorded a steeper 55 per cent decline in the first half of the year. GAIL saw its earnings drop by a sharp 31 per cent in FY15, after having reported year-on-year growth on each year for the past decade.

 The outlook also remain bright for Petronet LNG (PLNG).

PLNG will also benefit from lower prices and continues to benefits from expansion at Dahej LNG import terminal which is being expanded to 17.5 million tonne capacity by 2019, up from 15 mmt by end of this year.

"We expect that after 25 per cent growth in FY16F, (as forecast), growth will be 22 per cent in FY17F, before growing sharply by 47 per cent in FY18F as benefits from the Dahej expansion feed through.

 

Source:economictimes.indiatimes.com

India Likely To Import 5 Million Tonnes Wheat In 2016/17, Itc Executive Says

NEW DELHI (Reuters) - India may import 5 million tonnes of wheat in 2016/17 as its local production is hit by back-to-back years of drought amid rising demand, a leading consumer said on Friday.

The country is expected to produce 85 million tonnes of the grain in 2016, a decline of about 2.3 percent from last year, said S. Sivakumar, group head of agri and IT businesses at ITC Ltd .

 

 

Source:business-standard.com

Rupee Closes Marginally Lower Against Us Dollar At 66.76

Mumbai: The Indian rupee closed marginally lower against the US dollar on Friday, as traders avoided long positions ahead of the key economic data from global and domestic markets due next week.

The home currency closed at 66.76, down 0.06% from its previous close of 66.72. The rupee opened at 66.81 per US dollar and touched a high and a low of 66.74 and 66.88, respectively.

Most Asian currencies closed lower. South Korean won was down 0.81%, Malaysian ringgit 0.65%, Taiwan dollar 0.31%, Philippines peso 0.22%, Singapore dollar 0.18%, Thai baht 0.15%, China offshore 0.14% and Indonesian rupiah 0.05%. However, Japanese yen was up 0.25% and China renminbi 0.14%.

India’s benchmark Sensex index fell 0.48%, or 127.71 points, to close at 26,635.75 points. So far this year, the Sensex has gained 2%.

The government will release the April factory output data on Friday after 5.30pm. According to a Bloomberg analyst poll, the factory output will rise 0.7% in April, against a 0.1% rise in March.

The Consumer Price index (CPI)-based inflation and Wholesale Price Index (WPI)-based inflation data for May will be out on 13 June and 14 June respectively. According to a Bloomberg poll of analysts, CPI will be at 5.55% in May against 5.39% in April while WPI will be at 0.44% for May compared with 0.34% in April.

China’s National Bureau of Statistics will release the May data on industrial output, investment, real estate sales and construction, and retail sales on 13 June. The US Federal Reserve officials will meet on 14-15 June to discuss policy while the Bank of Japan (BoJ) is likely to stay on hold at its 16 June meeting. The UK referendum on its European Union (EU) membership on 23 June.

Meanwhile, India’s 10-year bond yield closed at 7.492%, compared with its Thursday’s close of 7.487%.

So far this year, the rupee has weakened 0.91%, while foreign institutional investors (FIIs) have bought $2.74 billion from the local equity market and sold $1.20 billion in the debt market.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.223, up 0.29% from its previous close of 93.953.

 

Source:.livemint.com

Steel Ministry To Seek Extension Of Floor Price On Imports

NEW DELHI: Steel ministry will seek to extend a floor price on steel imports beyond August, a senior official said, as the country looks to keep up its protectionist barriers to stem the tide of cheap foreign products.

NEW DELHI imposed the minimum import price (MIP) on 173 steel products in February, helping cut inbound shipments last month to their lowest level in at least 14 months. The MIP expires in August.

The steel ministry will call for the extension of MIP for as long products are being dumped in India, the official, who declined to be named as he was not authorised to speak to media, told Reuters.

India is the world's third-largest steel producer with a total installed capacity of 110 million tonnes. But the industry says its margins have been squeezed due to cheap imports from China, as well as Russia, Japan and South Korea.

To shield domestic mills, India in March extended safeguard import taxes on some steel products until 2018 and has begun probing the possible dumping of cheap steel from China, Japan and South Korea.

Last month it also imposed a provisional anti-dumping duty on seamless tubes and pipes imported from China.

Countries including Japan, Taiwan, Canada and Australia have accused India of restrictive trade practices with the country's steel import policies drawing wide criticism at the World Trade Organization (WTO).

A spokesman for the steel ministry said it was premature to discuss floor prices while the trade ministry, which decides whether MIP remains beyond August, was not immediately available for comment.

Recommendations that follow detailed investigations are generally accepted by the trade ministry.

 

Source:economictimes.indiatimes.com

India's Plan To Levy Tax Could Hit 75,000 Tonnes Sugar Exports, Says Industry Official

PUNE: India's plan to levy tax on sugar exports could hit nearly 75,000 tonnes of shipment heading towards Myanmar and Sri Lanka, an industry official said on Friday.

India, the world's second biggest sugar producer after Brazil and a top consumer, has so far exported 1.7 million tonnes in the marketing year that began on Oct 1, said Rahil Shaikh, managing director at ED&F Man Commodities India Pvt Ltd.

India plans to impose a 25 percent tax on sugar exports to maintain local supplies after two straight years of drought hit the crop in the South Asian nation.

Rising local sugar prices may force India to scrap tax on sugar imports, Shaikh said, adding he expects the country's sugar output in 2016/17 to be at around 23.5 million tonnes, down from 25.2 million tonnes in the previous year.

 

Source:economictimes.indiatimes.com

Rupee Closes Near 4-Week High Against Us Dollar At 66.65

Mumbai: The Indian rupee on Wednesday rose for the fifth consecutive session and hit a four-week high against the US dollar, after foreign institutional investors (FIIs) continued to buy equities in the local markets. FIIs bought $812.87 million in equities since last ten consecutive sessions.

The home currency closed at 66.65—a level last seen on 12 May, up 0.19% from its previous close of 66.78. The rupee opened at 66.78 per US dollar and touched a high of 66.62—a level last seen on 12 May.

India’s benchmark Sensex index rose 0.04%, or 10.99 points, to 27,020.66. So far this year, the Sensex has gained 3.46%.

The government will issue Index of Industrial Production (IIP) data on 10 June for the month of April. According to Bloomberg analyst poll, IIP will be at -0.6% in April against 0.1% in March.

Meanwhile, India’s 10-year bond yield closed at 7.49%—a level last seen on 30 March, as compared with its Tuesday’s close of 7.483%.

So far this year, the rupee has weakened 0.74%, while FIIs have bought $2.66 billion from the local equity market and sold $1.25 billion in the debt market.

Most Asian currencies closed higher. South Korean won rose 0.5%, Taiwan dollar 0.26%, Japanese yen 0.23%, Philippines peso 0.21%, Thai baht 0.14% and Singapore dollar 0.13%. However, Malaysian ringgit was down 0.16% and Indonesian rupiah 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.649, down 0.2% from its previous close of 93.828.

 

Source:livemint.com

India May Import 3 Lakh Tn Natural Rubber From Thailand

New Delhi, (PTI) Faced with rubber shortage, India is looking to import about three lakh tonnes (LT) of natural rubber from Thailand to meet its domestic requirement.

Indias annual demand for natural rubber is more than 10 lakh tonnes, while the domestic production is stagnant at about 5 lakh tonnes.

"The rubber authority of Thailand is offering about 3 lakh tonnes of natural rubber to India. Negotiations have started between the domestic tyre, rubber industry and the Thai authority," All India Rubber Industries President Mohinder Gupta said.

A high-level delegation of Thailand, comprising governor of its rubber authority Titus Suksaard, is on a visit to India for negotiations. "As of now we are in talks with Indian industry players to export about 3 lakh tonnes of natural rubber," Suksaard said adding that Thailand want to at least double its exports of natural rubber to India to 4 lakh tonnes. Suksaard also invited Indian rubber and tyre industry to invest in the proposed rubber city which is being established in Thailand for rubber and tyre industry.
×

"In view of the rising gap in domestic production and demand of natural rubber, the visit of Thailand delegation has significance and it will yield good results for both the countries," All India Tyre Manufacturers Association Director General Rajiv Budhraja said.

The domestic rubber production declined 13 per cent to 5.63 lakh tonnes in 2015-16, while imports during the period rose by 3 per cent to 4.54 lakh tonnes.

In April last year, the government hiked the import duty on natural rubber to 25 per cent or Rs 30 per kg, whichever is lower, to protect the interest of domestic growers and curb imports.

 

Source:indiatoday.intoday.in

Halting Diesel Imports May Not Translate Into Huge Savings For Oil Companies

 The latest strategy worked out by Indian Oil Marketing Companies (OMCs) to stop importing costly diesel from the international market and source cheaper fuel from domestic private refiners would not translate into significant savings for the state-run firms or have any noticeable impact on the country’s fuel bill, according to experts.

India consumed nearly 74 million tonnes of diesel last financial year. Around 180,000 tonnes – or a miniscule 0.2% -- of this demand was met through imports. The diesel imports came at a cost of Rs 655 crore, around 0.1% of the country’s total oil import bill of Rs 4,82,000 crore in 2015-16.

“The volume and value of imports is miniscule. India is a net exporter when it comes to petroleum products including diesel. And the exports are only going to rise with the commissioning of IOC’s Paradip refinery. The impact of the deal with private refiners, in terms of gain for OMCs or the effect on oil imports, would not be a directional change. Also, as private refineries are mostly export oriented, it does not make much sense for the firms to sell the product in the domestic market a cheaper rate,” said a senior analyst from a consultancy firm.

Rising domestic demand and subdued global prices have so far fuelled Indian diesel imports, which have more than doubled from 84,000 tonnes in 2013-14. Also, private refiners had refused to bear central sales tax and coastal freight costs. The situation has now turned on its head.

Asia’s gasoil crack for the benchmark 500 parts per million (ppm) grade has risen to nearly $12 per barrel, almost double the value on 6 April as strong demand driven by a severe dry season has bolstered the market. Besides, the OMCs have been able to convince private refiners on sharing of sales tax and inter-state coastal freight costs.

“There have been discussions with the private refiners for quite some time on this issue. Now a final deal has been struck. Our Chairman has also said that imports were resorted to last fiscal only to meet the emergency demands in some parts of the country,” said a senior executive from Indian Oil Corporation (IOC).

News agency Reuters has reported India's state refiners may halt diesel imports after working out a temporary mechanism to resume buying the fuel from private processors if global diesel prices remain at current levels.

 

Source:.business-standard.com

India Cotton Exports Drop On Thin Supply Pushing Prices Higher

MUMBAI: Cotton exports from India, the world's biggest producer, have nearly halted as local prices have rallied due to tight supplies because of drought, forcing key importers like Bangladesh, Pakistan and Vietnam to turn to other suppliers.

The freeze in export will prompt Brazil, Australia and United States to raise shipments and has pushed global prices to near their highest since August.

The price rise could subsequently push up fabric and clothing prices and put pressure on the margins of garment makers.

"In last three-four weeks Indian exporters could not sign a deal. Our cotton is more expensive than Brazilian or Australian supplies," said Chirag Patel, chief executive officer at Jaydeep Cotton Fibers Pvt. Ltd, a leading exporter.

The landed cost of Indian cotton for buyers in Pakistan and Bangladesh is at 75 cents to 76 cents per lb compared to around 73 cents for Brazilian cotton, he said.

Pakistan and Bangladesh prefer Indian cotton due to lower freight charges


Local cotton spot market prices have surged 10 per cent from a month ago to Rs 38,400 per candy of 356 kg (73.5 cents per lb) due to limited supplies after consecutive droughts cut production. A candy is equivalent to about two Indian bales of 170 kg each.

India may produce about 34.1 million bales of cotton in the 2015/16 season that started on October 1, down from last year's output of 38.3 million, the Cotton Association of India (CAI) estimates.

India has exported around 6.5 million bales of cotton so far during the 2015/16 season, with Bangladesh and Pakistan accounting for more than half of the total exports, said Dhiren Sheth, president of CAI. In 2014/15 India exported 6 million bales.

Cotton supplies in spot markets have been dwindling even as domestic textile units are ramping up purchases, Patel said.

In October to April cotton supplies in Indian spot markets fell 12.5 per cent from a year ago.

"The industry failed to judge the impact of drought on the production. Output turned out lower than the initial estimate," said a dealer with a global trading firm.

"Now textile units are aggressively buying to make sure they have stocks for the next four months."

The new cotton crop starts arriving from late September, but this year supplies could start from mid-October as sowing has been held up in key producing states because of a delay in the monsoon rains, said a trader based in Rajkot, Gujarat.

 

Source:economictimes.indiatimes.com

Extend Incentives In Gems And Jewellery Exports: Assocham Urges Government

KOLKATA: Apex industry body Assocham on Wednesday urged the government to extend incentives like interest subvention, merchandise exports from India scheme (MEIS) and others to promote gems and jewellery (G&J) exports that have been marred by global slowdown thereby putting at risk livelihood of over 30 lakh people employed by the sector across India.

"G&J exports from India are likely to remain under pressure this year as well, even though there are indications of improvement in business sentiment in United States of America (USA) which takes nearly half of country's diamond jewellery production," noted an Assocham paper titled '2015-16: A year of dismal export performance for India.'

"Though market share of the USA and Hong Kong in diamond and precious stones' exports has expanded to 29 per cent and 36 per cent respectively over the last few years, market share of the UAE has fallen steadily from one-fifth a few years ago to less than one-tenth of the total exports," noted the paper prepared by the Assocham Economic Research Bureau (AERB).

While import of rough diamonds and semi-precious stones have fallen by over 11 per cent in FY2015-16, the net diamond exports and semi-precious stones have declined by about 43 per cent year-on-year i.e. from $4.2 billion (bn) in 2014-15 to just $2.4 bn in 2015-16.

Besides, exports of jewellery have also fallen by about 17 per cent i.e. from $13.2 bn in 2014-15 to $11 bn in 2015-16. Dubai and Thailand are fast emerging as major jewellery manufacturing hub as a lot of Indian businesses are setting up units there.

The Gold Monetisation Scheme might help reduce reliance on import of gold to meet domestic demand and may have some positive impact during the course of the year, the paper observed.

Assocham has reiterated its appeal to the government for granting 'industry status,' to the gems and jewellery sector to give a fillip to investments and bring down costs of operation as that would also help build trust and faith in Indian brands in global markets and in achieving goals of Make in India.

Modernisation of labour laws, requirement of more export-oriented economic zones, establishment of a gold board, ensuring access to better financing, relaxation of certain taxation laws, segregation of investment and consumption demand, setting up a gold tourism circuit are certain key areas focus on which can help in reviving the G&J sector in the country.

Impact of falling global prices and export volumes has not only affected the G&J sector but petroleum products' exports have also plummeted by over 46 per cent i.e. from about $67 bn to $30.4 bn during the aforementioned period. "This seems to be much larger problem as Indian firms are losing their share in global markets."

The Assocham paper has also suggested for replacing power looms that account for about 65 per cent of fabric production in India by modern shuttle-less weaving equipment, besides it is also required to diversify its export markets away from a few countries in the European Union and the USA to nearby countries in the Asian continent.

Further, Assocham has recommended to urgently put in place the long-pending goods and services tax (GST) to reduce the burden of un-refunded state level taxes to make India's exports competitive.

It has also suggested the government to set up a high-level committee to look into costs of inter-state barriers to trade and suggest a time-bound roadmap to address the same as that would not only provide much-needed relief to the export sector but weld India into a single market much bigger than EU in terms of population.

 

Source:economictimes.indiatimes.com

Rbi Sets Rupee Reference Rate At 66.83 Against Us Dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 66.83 against the US dollar and 75.91 for the euro.

These rates were 66.96 and 75.94, respectively, yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 96.93 and 62.10 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

The SDR-rupee figure will be based on this rate, the statement added.

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

Anti-Dumping Duty On Chemical Import From China, Russia

New Delhi, June 6 () Government has imposed anti- dumping duty of USD 122.14-279.78 per tonne on import of a chemical, used in pharmaceutical and fragrance sectors, from China and Russia to protect domestic manufacturers.

The levy on the import of 'Dichloromethane (Methylene Chloride)' will remain in place for a period of five years from December 2015, the Central Board of Excise and Customs (CBEC) said through a notification.

In December last year, a provisional anti-dumping was imposed on such imports.

The definitive duty follows a recommendation for the same by Directorate General of Anti-Dumping and Allied Duties (DGAD).

CBEC said the DGAD in its final findings had concluded that the Methylene Chloride has been exported to India from the two countries has been below normal values and the domestic industry suffered "material injury" by the dumped imports.

The DGAD had made the case for definitive anti-dumping duty on the imports to remove injury to the domestic industry.

Acting on complaint of Chemplast Sanmar and Gujarat Fluorochemicals, the DGAD had initiated a probe in April last year to ascertain if the chemical was being dumped into India at below normal value.

Methylene Chloride is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, pharmaceuticals, agro and fragrance. It is also used as an extractant for edible fats, cocoa, butter and essences.
WTO member countries are allowed to apply anti-dumping measures on imports of a product if the exporting company ships the product at a price lower than the price it normally charges in its home market and the dumped imports cause or threaten to cause injury to the domestic industry.

 

 

Source:imesofindia.indiatimes.com

Government Weighs Doubling Capacity Of Lng Import Terminal

NEW DELHI: India plans to more than double its liquefied natural gas (LNG) import terminal capacity in six years to cater to the rising natgas demand from refineries, fertilizer and power plants.

Plans to set up new terminals and expand existing facilities will push up LNG terminal capacity to 47.5 million metric tonne per annum (mmtpa) by 2022 from the current 21.3 mmtpa, according to an oil ministry document.

In 2015-16, the natural gas consumption in the country rose barely 2 per cent to 52 billion cubic meters, of which 40 per cent was imported as LNG. But in the last few months, the consumption has soared, rising 14 per cent in April, banking on cheaper imports that rose 45 per cent.
Government weighs doubling capacity of LNG import terminal
As the economy expands and industries and households increase their consumption of natural gas, the dependence on imported LNG will only increase since the domestic output has been declining for years. A three-fourths collapse in natural gas prices in two years has made imports attractive.

The fertilizer and power sectors have been key consumers of the natural gas in the country, depending mostly on domestic output, while refineries and petrochemicals plants have relied more on imported gas.

The imported gas is liquefied at source and carried by ships to LNG import terminals where it is regassified for further supply. With expanding need for imports, Indian also needs to add more LNG terminal capacity.

Currently, there are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in Kerala. The recently-built Kochi terminal is barely functional due to the delay in the construction of pipeline planned to connect the terminal with the consumers.

 The capacity at Dahej is expected to expand to reach 15 million tonne by the year end from 10 million tonne at present, and further to 17.5 million tonne in future, according to the oil ministry document.

A new LNG terminal at Ennor in Tamil Nadu , being built by state-run Indian Oil Corporation BSE 0.28 %, with a capacity of 5 million tonne, is expected to be completed in three years.

Adani group is developing a 5 million tonne capacity at Dhamra in Odisha while Shell and GAIL BSE -0.07 % plan to set up a 5 million tonne terminal at Kakinada in Andhra Pradesh.

 

Source: economictimes.indiatimes.com

India To Soon Run Out Of $70-Bn Oilmeals Market

 India is steadily making an exit from the $70-bn oilmeals markets, due to non-availability of seeds for crushing and emergence of alternative supply sources on bumper oilseed crops there. Seed crushing mills have sought immediate relaxation in government policies for India to regain its lost glory in global oilseed markets.

Until three years ago, India used to contribute over 5 per cent in global oilmeals trade with availability of abundance of oilseeds from local sources. India's oilmeals exports, however, have declined by a staggering 94 per cent at a mere 7,737 tonnes in May 2016 as compared to 121,339 tonnes in the corresponding month last year.

Falling oilmeals exports have worsened financial health of Indian seed crushing mills. Most of them, therefore, have reduced their operating capacity to less than 50 per cent to reduce their losses which they incur currently at around Rs 1,000-1,500 for per tonne of seed crushing.

"India will soon go out of global oilmeals markets if the current trend in its exports continues," said B V Mehta, Executive Director, Solvent Extractors' Association of India (SEA).

Over the last three years, India's oilmeals exports have witnessed a free fall due to rapid change in global business environment. From the level of 4.38 million tonnes in 2013-14, India's oilmeals exports slumped to 2.47 million tonnes in 2014-15 and further 1.21 million tonnes in 2015-16. Trade sources estimate less than one million tonnes of oilmeals exports from India during the current financial year i.e. 2016-17.

Indian oilmeals exporters have been facing multiple problems which affected its shipment. Because of the fixation of the minimum support price (MSP) of oilseeds, mills have been unable to buy seeds from farmers below the MSP resulting into higher cost of meal production. Since vegetable oil prices remained subdued, domestic crushing unit face negative parity. Thus, domestic mills focus on import of refined oil for blending and repacking directly in local units instead of crushing of locally originated seeds and concentrate on trading business rather than manufacturing of oil and its derivatives - oilmeals.

The scenario has changed due to bumper soybean output in the world's three major producing countries including Argentina, Brazil and United States. Consequently, countries like China have started importing soybean from all over to process locally. This has reduced China's dependence on imported oilmeals.

Meanwhile, Iran, the largest importer of Indian oilmeals until 2013-14, was facing global economic sanctions which prompted the Islamic country to turn to India for its bird/animal feed requirement. Since the economic sanctions have been lifted by the Western powers, Iran has almost stopped import of oilmeals from India now. Iran currently meets over a million tonnes of its oilmeals requirement from cheaper alternative sources including United States, Argentina and Brazil. Meals supply from these countries stands $100-150 lower than that from India.

Similarly, Japan used to import around half a million tonnes of oilmeals from India until three - four years ago, has now started importing oilmeals extracted from genetically modified (GM) seeds. Since, India produces meals from non-GM seeds, its extraction works out costlier than GM.

"Therefore, the government needs to change its policy for oilseeds and allow sowing of GM. Import of GM seeds should also be allowed for crushing locally. Otherwise, India's exports of meals would come to standstill," said Kanubhai Thakkar, Managing Director, Gokul Refoils and Solvent Ltd (producer of Gokul brand oils).

Import of oilseeds in India is currently non-remunerative due to levy 30 per cent tax. Also, import of GM oilseeds is not allowed in India.

"GM seeds fetch at least three times more output. Allowing GM plantings in oilseeds would not only bring higher output for farmers but also make cost of oil and oilmeal productions lower as farmers would be able to sell their seed output at lower than MSP in case markets turns unfavourable," said Thakkar.

 

Source:business-standard.

India May Halt Diesel Imports, Deal With Private Refiners: Sources

NEW DELHI: India .s state refiners may halt diesel imports after working out a temporary mechanism to resume buying the fuel from private processors if global diesel prices remain at current levels, two refinery sources said.

State refiners stepped up imports in recent months after private refiners refused to continue absorbing sales tax and coastal freight costs, making the domestic fuel more expensive.

Indian imports were a factor behind the stronger Asian gasoil crack, which has been holding near $12 a barrel for the fifth straight session on Monday, after almost doubling to $11.74 on June 2 from this year's low on April 6.

Under the latest arrangement, private refiners will pay the central sales tax and state-run marketing firms will pay coastal freight costs for interstate cargoes shipped from plants in western Gujarat state, the sources said.

India's diesel use is rising along with an economy that grew by 7.6 percent in the financial year to March 31. In the last fiscal year India's diesel demand grew 7.5 percent, its fastest pace in four years.

To meet this soaring demand, the three state-owned firms last year bought some 12 million tonnes of diesel from the private oil processors.

 State-owned Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp sell the bulk of diesel consumed in India.

Diesel is used as a transport fuel but also for power generators and in irrigation systems and heavy equipment, including those for farming.

The approaching Monsoon in parts of India could reduce the need for power generators as the weather cools.

 

Source:economictimes.indiatimes.com

Copper Majors Demand Abolition Of Import Duty

NEW DELHI: Indian copper majors have demanded abolition of duty on imported raw material and restoration of export duty incentives as their capacities lie underutilised.

Hindalco Industries BSE 2.29 %, Hindustan Copper BSE 0.00 % and Vedanta have asked the government to remove the current import duty of 2.5% on copper concentrate.

"The industry is dependent on imports as only 4% reserves are available in India whose rights vest with state-owned Hindustan Copper Ltd, while rest 96% is imported, Hindalco Group Executive President, Head (Copper Business) JC Laddha said.

The mines ministry has recommended to the revenue department to abolish the duty, Mines Secretary Balvinder Singh told ET.

The three companies have a combined annual capacity to produce one million tonnes. The capacities are underutilised by about 22% as copper imports from Japan and Asean firms have increased, he said.

India's consumption of copper is at 6.25 lakh tonne while imports are around 4 lakh tonne. India's Free Trade Agreements (FTAs) with Japan and Asean countries allow imports of finished products at lesser duty, giving rise to an inverted duty structure. The inverted duty structure incentivises imports of finished goods rather than imports of raw material for local manufacturing, Sterlite Copper Chief Executive Officer P Ramnath said.

 

 

Source :economictimes.indiatimes.com