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