Ford Pips Hyundai To Become Top Passenger Vehicle Exporter In August

 Even as it expects improvements in India sales, Ford’s export story is getting stronger as the US carmaker displaced Hyundai to become the largest passenger vehicle (PV) exporter from India in August.

However, in cumulative exports for the current fiscal, Ford India stays in the second slot.

By shipping higher number of ‘India-built’ vehicles over the past five months, Ford displaced Maruti to grab the second slot. With robust exports, its numbers even surpassed export volumes of Hyundai in August.

During the month, Ford exported 17,860 units of PVs as compared with Hyundai’s exports of 16,506 units and Maruti’s 12,131 units.

During the April-August 2016 period, Ford’s total PV exports stood at 60,249 units, an increase of 45 per cent over the previous year.

Narrowing volume

Hyundai’s exports were flat at 70,893 units during the first five-month period of this fiscal, according to the data provided by SIAM.

In the past one year, the gap in export volume between Hyundai and Ford has been narrowing.

Hyundai has been facing some challenges in some of its export destinations. Also, its domestic demand continues to rise, and hence, its share of exports has been declining.

 

Sources :thehindubusinessline.com

Indonesia To Issue Permits To Import 700,000 Cattle In 2017

Indonesia said on Tuesday it would issue permits to import 700,000 cattle for slaughter in 2017 as well as shipping in additional buffalo meat from India, as it looks to control climbing food prices.

Since coming to power in October 2014, President Joko Widodo has pursued food self-sufficiency to protect farmers, but the result has often been volatile prices and worried investors, eroding support for the government.

"This is being done to push down prices that are still high, and to prepare for demand during the Muslim fasting month in 2017," the country's economic ministry said in a statement.

The Southeast Asian nation ships in virtually all its cattle from Australia - a trade that was worth nearly $600 million in the last financial year.

Indonesia's government late last year estimated that the country would import around 700,000 head of cattle in 2016.

The country has been pushing cattle-buyers to start breeding their own livestock as part of efforts to reduce its dependence on imports.

Trade minister Enggartiasto Lukita said on Tuesday that for every five cattle imported, feedlots would need to have at least one animal for breeding purposes.

The government has also revised plans to import buffalo meat from India. It now expects to ship in 100,000 tonnes of the meat by June 2017, rather than aiming for 80,000 tonnes of such imports this year.

 

Sources :.business-standard.com
 

Wheat Scarcity Leads To Jump In Import

 There has been a phenomenal increase in the price of wheat in India in the last few months due to falling production and low procurement by government agencies  specially at a time when the price in the global market is low.

Import of the grain has increased, as that is viable in some centres in south despite 25 per cent import duty.

Initial estimates suggest wheat import this year will be 2.3 million tons which was not seen since 2009. Reports suggest if import duty is cut, import will rise to 3-4 million tons.

From April onwards, wheat prices have gone up in India by 15 per cent.
 
Trade and user industry is craving for the abolition or cut in import duty of wheat which is at 25 per cent, fresh contracts of 1 million tonne have been singed recently, said informed sources.

The superior quality Australian wheat is available at $225 per tonne and Ukrainian wheat is available at $195 per tonne.

Despite a high import duty of 25 per cent on wheat, the landed cost of imported wheat is Rs 2125 per quintal to 1850 a quintal (depending upon the quality) against the average price of Rs. 2000 per quintal of wheat liquidated by Food Corporation of India under OMSS (Open Market Sales Scheme).

In southern state wheat cost more due to higher transportation charges.

Officials in FCI informed that the demand for wheat under OMSS has been exceptionally high this year and 2 million tonnes of wheat has been sold till 8 September under the e-auction of OMSS against a minuscule 3.58 lac tonnes in the corresponding period last year.

He agreed that if the trend continues there may be difficulty in tackling the situation as demand picks up significantly during and after festival season.

The total annual sale of wheat under OMSS last year was 7 million tonnes, he informed.

The annual requirement of wheat for Public distribution system is 24.5 million tonne. The Food Corporation procured 23 million tonne this year against the estimated target of 28 million tonne. The opening stock of wheat as on April 1, 2016 was 13.85 million tonne.

The average annual requirement of wheat for PDS and OMSS (24.5 million tonne and 7 million tonne) and FCI has an estimated stock of 36.8 million tonne from April 16 to March 17.

The trade estimates predict a higher demand for imported wheat, somewhere close to a million tonne by the private millers this year FCI is hand to mouth with its wheat stocks.

"We could have imported 3-4 million tonne as the prices are at a rock bottom level in the international market had the duty been kept at 10% and not revised to 25%.

The escalation in wheat price, that has been creating holes in consumers' and millers' pocket would have averted by importing higher quantity at a lesser price", told an importer who did not wish to be quoted.

Multinational companies, flour millers and a few wheat product makers are said to be importing and have contracted for another million tons import and if duty is relaxed, imports this year is expected to be 3 to 4 million tonne.

Even at current rate Edelweiss Agri Research report puts import estimate for the current season at 2.3 million tonne and it will revise it upward if import duty is relaxed.

Ministry of agriculture's fourth advance estimate lowered crop estimate at 93.5 million tonne for when but Edelweiss Agri Research estimates, "crop at 82.64 million tonne. Trade sources puts it at 80 million tonne and USDA estimated it in August at 88 million tonne," said EAR report.

Adi Narayan Gupta, a miller from Uttar Pardesh and a senior member of Roller Flour Millers Association of India said that a relaxation in import duty may have direct implications the millers in South due to proximity to port but it will have repercussions on millers in other parts of India too as lesser demand will ease out the prices.

According to sources, 5 lac tonne of import was imported last year. This year 1 lac tonne has already been imported. Lower price in international market and supply constraints in domestic market may result into much higher exports this year.

 

Sources :.business-standard.com