Rupee Around 63/Dollar After Rbi Chief Rajan's Comments

The rupee gained past 63/dollar on Thursday after comments from the Reserve Bank of India chief about dollar demand from oil companies being smoothly absorbed by the forex market and easing fears of near-term tapering by the U.S. Federal Reserve helped the currency.

The rupee rose to 62.9525 to a dollar versus its Wednesday close of 63.30/31. It was last trading at 63.01/02.

Fed Chairman-elect Janet Yellen, in remarks prepared for her nomination hearing before the Senate Banking Committee later on Thursday, said the U.S. jobless rate was still too high and both the labour market and economy were performing "far short" of potential.

Source:- in.reuters.com

India To Import 2.5Mt Urea In Jan, Feb 2014

India is expected to purchase 1.5–2.5 million tonne urea in January and February 2014 to meet the outstanding demand. Purchases during the October-November period have been robust, with price increases seen for some products, according to a monthly report by ICIS, provider of petrochemical, energy and fertiliser market information.



The demand for fertilisers mainly urea, ammonia, sulphur and potash is expected to improve in the coming months, it said.



Urea prices in India increased in October, with the lowest offer from State Trading Corporation of India (STC) at $309.9 per tonne CFR (cost and freight), up $15 per tonne from the September tender from state-owned trading firm MMTC, it said.



About 240,000 tonne ammonia was loaded to India from Saudi Arabia and Iran in Ocotber. Contract prices for buyers on both coasts have increased slightly to $472-479 per tonne CFR and the netbacks to the Arabian Gulf are around $435tonne FOB (free on board).



The phosphates market in India has been bearish this month and buyers are not expected to return to the market before the new year due to ample inventories and weak prices, the report said adding that the price of phosphoric acid is down by about $ 100 a tonne to $609 a tonne (CFR), the report said adding that the demand for sulphur is likely to pick up in late November when the sugar season starts.



“Sellers agreed to give discounts as importers were deferring outstanding shipments due to the depreciation in the rupee against the US dollar and following a decline in global prices,” said Deepika Thapliyal, analyst at ICIS, on the demand-supply side dynamics.

Source:- mydigitalfc.com

All India Roll Out Of Risk Management System (Rms) For Export

Finance Minister Shri P. Chidambaram today inaugurated the All India rollout of an IT based Risk Management System (RMS) for the Customs clearance of export goods in the presence of representatives from the trade and industry at New Delhi.

Speaking on the occasion Finance Minister said that RMS is a trust based IT system that expects the trade to make correct declarations to Customs. It is a trade facilitation measure which, on implementation, would reduce dwell time from few days to few hours. In view of its obvious advantages, RMS is also being endorsed globally at all forums including WTO.

Finance Minister also emphasized that success of any trade facilitation measure depends on compliance of legal requirements by trade. He urged the trade to comply with the legal provisions so that Customs can ensure speedy clearance of the import and export goods.

The launch of RMS in exports today covers 11 Customs stations at Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Pune and Tutocorin. It would be extended to all EDI Customs stations by year end. Benefits are expected to accrue to the trade in terms of faster clearances and reduced transaction costs thereby enhancing the global competitiveness of our export goods.

Source:- nvonews.com

New System May Cut Export Customs Clearance To Few Hours: Chidambaram

Finance Minister P Chidambaram today expressed hope that the time taken for customs clearance of export cargo will come down to a few hours after implementing a risk management system.

"I sincerely hope that with the introduction of RMS in exports, the dwell time which now ranges from 1.6 days to 3.68 days will be brought down to a few hours," Chidambaram said after launching the all-India Risk Management System (RMS) for exports.

India started using the RMS for imports in December 2005 and it has helped to bring in additional revenue of Rs 2,211 crore, Chidambaram added. It has also reduced the dwell time, or the duration for which cargo remains in transit storage while awaiting clearance, for incoming shipments.

"The revenue department claims that the dwell time for imports has come down drastically after launch of RMS in imports. Likewise, RMS in exports is intended to bring down the dwell time so that the cargo meant for exports moves up quickly, leaves the shores of India towards its ultimate destination," Chidambaram said.

The time currently taken for customs clearance of export cargo in Mumbai is 1.6 days, while at the Inland Container Depot in Delhi it is 3.68 days.

Chidambaram said the RMS is based on trust and is part of international co-operation efforts on trade-related issues. The facility will enable low-risk consignments to be cleared based on self-assessment declarations by exporters.

By expediting the clearance of compliant export cargo, the system will contribute to lower dwell time, besides reducing transaction costs and making businesses internationally competitive.

Source:- indianexpress.com

[Indian Custom Non-Tariff Notification] : Amendment Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Moily’S Plan To Increase Crude Oil Imports From Iran Hits A Roadblock

Petroleum and Natural Gas Minister, Veerappa Moily’s grand plan to save outflow of $8.47 billion on account of increased imports of crude oil from Iran under the rupee payment mechanism has hit a roadblock due to inability of his Ministry to make the Rs. 2,000 crore Energy Insurance Pool fund operational.



Mr. Moily had submitted a master plan to Prime Minister, Manmohan Singh in September outlining urgent need to increase imports from Iran to around 13.2 million tonnes per annum this fiscal to save around $8.47 billion in foreign exchange. It was stated that under the rupee payment mechanism in force with Iran, New Delhi would end up saving critical foreign exchange if it increased its imports of oil from Iran which stand around 2 MT at this time around.



However, refiners have refused to import crude oil from Iran in the absence of any firm insurance cover due imposition of US-led sanctions against Tehran. The Petroleum and Finance Ministries had agreed to create a Rs. 2,000 crore Energy Insurance Pool fund headed by state-run GIC Insurance to provide cover for imports of crude from Iran. Oil Industry Development Board (OIDB) will provide Rs 1,000 crore for the insurance pool while an equal amount will come from the state insurers.



The Finance Ministry had last month also written to the Petroleum Ministry to work on fast track to make the fund operational but things have remained in limbo.



In the meantime, this is created problems for those who want to import crude oil from Iran including state-owned refiners. State-owned Hindustan Petroleum Corporation Limited (HPCL) said it had plans to import about 0.8 million tonne of crude oil from Iran if a fund to provide insurance cover for refineries processing oil from the sanction-hit nation is put in place. "We have not imported any oil from Iran this fiscal but we have contracts to buy oil from Iran. We expect the insurance fund to be operational by next month and if that happens, we will be able to import six ship laods of oil in four months,’’ HPCL Director (Refineries) B. K. Namdeo said in New Delhi.



Similarly, Mangalore Refinery and Petrochemicals Ltd (MRPL) and Essar Oil Ltd (OIL) plan to import 4 MT each from Iran, as against about 5 million tonne each they imported in 2012-13. State-owned Indian Oil Corporation (IOC), which imported 1.566 MT oil from Iran in 2012-13, has entered into a term contract for importing 1.2 million tonne crude oil from Iran this fiscal.



In fact, sources in the Petroleum Ministry said Iran has offered discounts on crude oil price and free shipping if India agrees to buy more of its oil. Last year, it bought 13.1 million tonne oil from Iran. Tehran has offered to give nominal discounts in price as well as free delivery of oil at Indian ports in its ships. It has not stated the kind of discount it will offer but has indicated it is willing to sell crude oil to Indian refiners at prices lower than internationally traded rates.



On other hand, talks between New Delhi and Tehran to resolve the issue of rupee payment mechanism has not made much headway. India had been in the last few months paying 100 per cent rupee payment to Iran for the crude oil purchases. However, recently Tehran reverted to the old system of taking only 45 percent of the payments due in rupees and for the rest is seeking payments in Rouble, Yen or Yuan.



Since July 2011, India had paid in Euros to clear 55 percent of its purchases of Iranian oil through Ankara-based Halkbank. The remaining 45 percent due amount was remitted in rupees in accounts Iranian oil company opened in Kolkata-based Uco Bank.



India is keen that the system of full payments in rupee is resumed as it will help save on forex outflow.

Source:- thehindu.com

World Diverts Garment Import Orders To India

Indian garment exporters have been bagging more orders from the traditional export markets since April. Among the many reasons are a depreciating rupee, recovery in the US, rising cost of Chinese ma­n­ufacturing and a hardening yuan and, last but not the least, Bangladesh.



The garment industry in Bangladesh has been facing labour compliance problems after the collapse in May this year of Rana Plaza that housed hundreds of garment units has raised human rights issues and social unrest.



As a fallout, several importers in the US and Europe are reportedly ditching Bangladesh and looking at alternate supplies, including from India.



Aggravating the situation in Bangladesh, 250 garment factories near capital Dhaka were forced to shut down on Wed­ne­sday, foll­owing labour unrest ov­e­r demands for higher wages.



The earlier developme­n­ts seem to have already h­a­d some positive effect on Indian exports. The latest labour disturbance can further expand India’s opportunities.



“Last year our garment exports declined to below $13 billion from $13.5 billion in the previous year,” said DK Nair, secretary general, Confederation of Indian Textile Industry (CITI). “However, since April exports have been growing by 15 to 17 per cent and we will probably clock an export revenue of $17 billion this year. It seems business orders are getting diverted to Indian manufacturers, as many have reported a spurt in orders,” he said.



According to Amit Ladsaria, director of Turtle, Indian garment firms which contract-manufacture on behalf of US, European brands or retail chains are certainly getting more orders. According to data from the Apparel Export Promotion Council (AEPC), Indian garment exports to the European Union increased by 5.9 per cent year on year in January-May, while those of China and Bangladesh declined by 9.7 per cent and 1.8 per cent, respectively.



In September apparel exports rose by 14.95 per cent to $1.11 billion. In the first half of the financial year, India exported apparel worth $7.9 billion, a rise of 13 per cent over the year, according to AEPC data.



In terms of apparel export growth during April-August, the highest growth was registered by the Southeast Asian region followed by West Asia, North America, EU, Latin America and Southern Africa. South Asia registered a decline.



Bangladesh is not just India’s competitor in garment exports, but it also imports Indian yarn. Fortunately, the yarn industry has not seen any drop in demand from Bangladesh. On the other hand, the Bangladesh events have upped the Chinese demand for Indian yarn.



“China imports yarn from both Bangladesh and India. Around 40 to 50 million kg of Indian yarn goes to China. After the events in Bagladesh, China is looking at India as an alternative source. A Chinese delegation headed by its textile minister is now in India. Indian yarn producers are also increasingly receiving enquiries from Chinese companies,” said K Selvaraj, secretary general of the South Indian Mills Association.



“Indian garments are up to 18 per cent costlier. While Bangladesh has the benefit of zero duty for imports into European Union, Indian garments attract 9.6 per cent duty,” said V D Zope, secretary general of the Textile Association of India. “Indian garment manufacturers are largely small and medium in size, compared with the large units in Bangladesh. We lack the capability to handle bulk orders and our response time is also longer,’ he added.



“In the past three or four years, very few factories have been set up in the country. Labour availability has also become worse due to rural job schemes. People in rural areas are finding it easier to stay in their hometown,” said Rahul Mehta, president of the Clothing Manufacturer Association of India.



“Labour shortage is the biggest problem preventing India from taking advantage of the situation. While our labour is already expensive, the shortage only aggravates the problem,” explains a Tiruppur-based exporter, who declined to go on rec­ord. “The power shortage, though eased to an extent now, also aggravates the problem. Hardly 30 per cent of the units in Tiruppur are operating today; several others stopped operations.”



The gains from the rupee depreciation have been offset by higher diesel prices and inflation. “Even the benefits of a depreciated rupee come about six months after orders are booked. We neither have the bulk capacities to cater to big global customers nor the skilled labour to get into value- added products,” he added.



Joseph Thomas of Joes Merchandising Services feels the best way forward is “to opt for the Turkish model – small volumes but really high-end value products.”



“But, the problem is, we are still dishing out cotton-based garments, whereas the bigger pie is in other fabrics like recycled polyesters, organic cotton, silk and other fashion driven blends,” he added.

Source:- mydigitalfc.com

Perfect competition in real estate market; dominance by one party not possible, CCI says

Competition Act : Issue of abuse of dominance by opposite party, a real estate developer, cannot be gone into when various reputed developers were offering residential flats in relevant market

HC upheld sec. 69C additions as assessee failed to explain purposes and nature of unaccounted exp.

IT: Where appellant failed to explain purpose and nature of expenditure disclosed in search and same was also not recorded in books of account, addition was to be made under section 69C

SC : AO can issue sec. 133 notice to financial institutions seeking info. of depositors on deposit a

SC : Assessing Officer can issue 'general' notice under section 133(6) to Financial Institutions to furnish information regarding account holder with cash transactions or deposits of more than Rs. 1,00,000

Admitting an undisclosed income and an intention to pay taxes saves assessee from concealment penalt

IT: Where assessee admitted undisclosed income found during search and he was ready to make payment of tax, no penalty was to be levied

Case remanded as no verification made by revenue to check eligibility of assessee for sec. 80P relie

IT: Where bye-laws of assessee was silent about whether voting rights were restricted by bye-laws and rules of society to three classes of members specified in proviso to section 80P(2) and Assessing Officer as well as Commissioner (Appeals) had not carried out required verification, claim of deduction under section 80P(2)(a)(vi) to be remanded back to Assessing Officer for fresh consideration

RBI asks NBFCs to file and register records of equitable mortgages with Central Registry

NBFCs/SARFAESI : Filing of Records of Equitable Mortgages with The Central Registry

Revenue’s declaration to pull out its reasons for reassessment makes reassessment notice invalid

IT : Where department itself admitted that Assessing Officer would withdraw impugned reasons for reassessment and record fresh reasons incorporating correct factual position and then proceed in matter in accordance with law, notice under section 148 did not survive

New grounds can be admitted by Tribunal only is founded on facts already placed before lower authori

IT: Tribunal cannot allow a party to change its stance by reference to new facts that were not pleaded or asserted before Assessing Officer or Commissioner (Appeals)

Show-cause notice is mandatory prior to initiation of recovery proceedings under Central Excise

ST : Before initiating recovery proceedings under rule 8(3A) of Central Excise Rules, 2002, department must issue show-cause notice setting out periods of default, amount payable, interest payable and afford an opportunity to assessee

Sacred route goes from bank corridors - No unexplained cash credit if loan was repaid via cheques

IT: Where there was sufficient funds in lender's account and loan was taken and repaid through cheques, there was no unexplained cash credit

Depreciation on leased asset allowed in earlier year, available in subsequent years also

IT : Where some expenditure was definitely involved in earning income from tax free bonds, disallowance made under section 14A at rate of 2 per cent was justified

Trust not hit by proviso to sec. 2(15) without establishing profit motive or deviation from laid dow

IT : Where no material was brought on record to suggest that assessee-development authority was conducting its affairs on commercial lines with motive to earn profit or had deviated from its objects as detailed in trust deed, proviso to section 2(15) was not applicable and assessee was entitled to exemption provided under section 11

Sec. 158BD notice quashed as no incriminating doc relating to assessee found during search of third

IT: Where no documents pertaining to assessee was found/seized in search carried out at premises of third person and Assessing Officer having jurisdiction over third person had also not recorded his satisfaction that assessee had undisclosed income, proceedings under section 158BD initiated against assessee were invalid and liable to be quashed

IRDA curtails frequency of board meetings; meetings to be held four times a year

Insurance : IRDA (Meetings) (First Amendment) Regulations, 2013 - Amendment in Regulation 3

Interest to be paid along with refund; it can’t be denied on pretext of assessee’s failure to apply

IT: Where refund is pending before authorities, failure to apply for refund cannot be treated as delay attributable to assessee for denial of interest on refund

Posco Gets More Time To Complete Odisha Sez

12-Nov-2013

South Korean steel major Posco has got time till next year to acquire land and disburse compensation for its proposed multi-product Special Economic Zone in Odisha.



The Board of Approval for SEZs, which decides on issues related to setting up and functioning of the zones, gave extension to the project, approved way back in October 2006. This is the fourth extension given to the project, with the last one lapsing last month.



Since Posco proposes to invest $12 billion in the SEZ, one of the largest foreign direct investments to be brought into the country by a company, it is also in India’s interest to give it more time, a Commerce Ministry official told Business Line.



The multi-product SEZ, which is to be developed by Posco-India Private Ltd in Odisha’s Jagatsinghpur district, has been facing a rough run in the State. Issues related to environment and forest clearances as well as refusal by locals to give land have held up the project, which is proposed to be spread over 1,620.49 hectares (4,000 acres). “BoA members agreed that there was evidence that Posco has remained engaged with the project over the years and was trying to get the tangles sorted out. It was, therefore, decided to extend its in-principle approval by another year,” the official said.



The SEZ project proposes to produce 63,48,000 tonnes of finished steel products per year and provide direct employment to about 18,000 people and indirect employment to 30,000 more.



The developer had applied to the BoA for further extension of approval by one year on the ground that land was not encroachment-free till date and that the encroachment removal and compensation disbursement processes were still in process.



The State Government has so far handed over physical possession of 1,704 acres and the company is expected to get another 1,000 acres soon, Posco-India’s General Manager Hak Soo Kim said in a letter to the Industries Department.

Source:- thehindubusinessline.com

Oil India Sept Quarter Net Drops 5.3 Pc To Rs 903.64 Cr

Oil India (OIL), the nation's second largest state explorer, has reported a 5.3 per cent drop in its second quarter net profit on lower crude oil production and higher fuel subsidy.



Net profit in July-September quarter dipped to Rs 903.64 crore, or Rs 15.03 per share, from Rs 954.57 crore, or Rs 15.88 a share, the company said in a statement.



Profits fell as it shelled out 7.5 per cent more fuel subsidy at Rs 2,233.70 crore in the quarter under review.



Upstream firms like OIL and ONGC bear a portion of the losses fuel retailers incur on selling diesel, domestic cooking gas (LPG) and kerosene at government control prices. They do so by selling crude oil they produce at a discount to the downstream companies.



The subsidy outgo lowered net profit by Rs 1,265.68 crore, OIL said.



OIL's net realisation on crude oil was $52.33 per barrel after it gave a discount of $56 to the downstream refinerers like IOC. The net realisation was marginally lower than $52.63 a barrel it got in Q2 of last fiscal.



Crude oil production slipped 4.6 per cent to 0.916 million tonnes while natural production at 0.666 billion cubic metres was lower than 0.69 bcm in July-September of 2012.



"The decrease in crude oil production and sales quantity is due to certain bandhs and blockades (in North East) which affected operations in Q2 FY14. The crude oil loss due to such Bandhs and Blockades was 3456 tonnes during Q2," the statement said.



Turnover was up 12.58 per cent at Rs 2,836.40 crore in second quarter.



Net profit fell 19.74 per cent to Rs 1,512.72 crore, or Rs 25.16 a share, in the first half of current fiscal as subsidy outgo soared 3 per cent to Rs 4,215.76 crore. Turnover was almost unchanged at Rs 4,934.17 crore in April-September period.

Source:- businesstoday.intoday.in

Indian Textile Towns Strike Against Power Tariff Hike

Thousands of slogan-shouting powerloom weavers on Monday marched on their motorcycles through the narrow lanes of Malegaon, a textile town 300 km north of Mumbai, to protest a recent government hike in power tariff.



"We will no longer tolerate the double-standard policy of the state's government," Asad Zeeshan, a small-time powerloom weaver who joined the motorcycle rally, told Anadolu Agency.



The middleclass weaver owns 24 powerlooms -- a weaving machine invented by Edmund Cartwright way back in 1785 and is still in vogue in a developing country like India.



"Beginning tomorrow, there will be complete shutdown of Malegaon’s powerloom industry for six days," Zeeshan said.



Malegaon will become the third textile town to join a call for voluntary strike over the recent decision of the Maharashtra State's government to hike power tariff.



On September 5, Maharashtra Electricity Regulatory Commission, a government-appointed body, increased the power tariff per unit from Rs. 3 to Rs. 4.40.



Bhiwandi, a textile town 60kms north of Mumbai, began a ten-day strike from November 6.



Ichalkaranji, another textile hub 425 km southeast of Mumbai, followed suit on November 7.



On October 18, people in 70 places in 20 districts participated in a unique protest of burning power bills.



Mufti Mohammed Ismail, the state legislator from Malegaon, came down heavily on the state's government.



"According to one estimate, government collects Rs.2,000 tax annually per powerloom while it only gives the subsidy of Rs.750 in power tariff," he told AA.



"The state government is testing the tolerance of more than a million people in three different textile towns," he fumed.



According to the Federal Textile Ministry, Bhiwandi, Ichalkaranji and Malegaon are the three most important powerloom clusters mainly controlled by Muslim weavers.



Out of total 2.4 million powerlooms in India, Maharashtra State has 1.2 million powerlooms.



Bhiwandi boasts at least 600,000 power looms while Ichalkaranji and Malegaon, once known as the Manchester of Maharashtra, each has approximately 150,000 powerlooms.



Doldrums



Mahavitaran, the power distribution company, denied accusations of exploiting hapless weavers.



"We have improved the power distribution and have successfully brought down the company’s loss," an official told AA on the condition of anonymity.



"It is the Regulatory Commission who decides the power tariff not us," he said.



Faizan Azmi, a veteran powerloom expert and chairman of the Bhiwandi-based Maharashtra State Powerloom Federation, a textile NGO, urged the state government to reconsider its position.



"The state government must resolve this issue at the earliest because the powerloom industry is literally in doldrums," Azmi told AA.



Dr. Rehan Ansari, a political commentator from Bhiwandi, says small weavers will suffer the most because of the shutdown as their earnings entirely depend upon the production.



He does not expect a solution soon.



"It is highly unlikely that a favorable decision will be taken by state government," he told AA.



"At the most, they will adopt conciliatory tone and try to delay this under one pretext or another as the shutdown or strike is not indefinite," he added.



Ansari says that the government may delay the issue of power tariff by appointing a review committee.



Pratap Hogade, Secretary of Ichalkaranji-based Indian Powerloom Federation, said the power tariff in Maharashtra is almost double than other states.



He accused the state's government of adopting delay tactics.



"On October 23, a cabinet meeting was called and a committee was formed to resolve this issue," he recalled.



"There has been no word from the committee yet. State is adopting delay tactics to sabotage this mass protest," Hogade charged.



"We immediately want a stay on the tariff hike. The state committee can take from 6 months to 6 years to decide."



Azmi, the industry activist, says so far there is no sign that the state's chief minister has intervened in the matter.



"Efforts must be made to include power looms under the category of ‘domestic industry’," he asserted.



"Hundreds of thousands of people, including migrant laborers from North India, will be jobless if this industry collapses," he warned.



But Rasheed Tahir Momin, a state legislator from Bhiwandi, is still optimistic.



"The government has already appointed a cabinet sub-committee to find a solution to the ongoing stalemate," he told AA.



"It is expected to file its report within a couple of days," he added.



"I am constantly in touch with chief minister’s office. I am getting a strong feeling that the chief minister will intervene in this matter soon and the outcome will be positive," said the lawmaker.



"With the kind of pressure and protest, I am hopeful of a positive outcome soon."



An official in Maharashtra chief minister’s office told AA that they are closely monitoring the situation in three textile towns.



When asked whether there will be any decision by the chief minister to resolve the shutdown crisis, he refused to divulge any detail.



"Everything is on the table. We are meeting various delegations and deliberating all the possibilities," said the official, declining to be named.



"The cabinet sub-committee will submit a report soon," he said.



Yusuf Ilyas of the All-Malegaon Powerloom Consumers Association expected the state's government to bend this time.



"Time and again, the government has played the role of hide and seek," he told AA.



"But this time, we will not relent to their persuasion. We will only back down when there is a decision to withdraw the hiked tariff."

Source:- worldbulletin.net

Palm Imports By India Expanding As Crop Delay Cuts Reserves

Palm imports by India, the world’s largest consumer, probably climbed in October as a delay in the oilseed harvest reduced cooking oil stockpiles to the lowest level in nine months.



Shipments of the main crude and refined palm oils advanced 14 percent to 710,000 metric tons from 620,385 tons a month earlier, according to the median of estimates from five processors and brokers compiled by Bloomberg. Total vegetable oil imports, including those for industrial use, rose 10 percent to 950,000 tons, the survey showed. The Solvent Extractors’ Association of India will release the data this week.



Increased purchases may extend a rally in prices of palm oil, used in everything from candy to cosmetics. Futures in Kuala Lumpur entered a bull market on Nov. 1 and are heading for their first annual gain in three years amid production declines in Indonesia, the world’s biggest supplier.



“The Indian crop was delayed, leading to lower supplies ahead of festivals,” said Sandeep Bajoria, chief executive officer of broker Sunvin Group, referring to Diwali and Eid celebrations when consumption of fried foods and sweets expands.



An extended monsoon delayed the harvest of soybeans and peanuts this year, said Mumbai-based Bajoria. The Soybean Processors Association of India cut its forecast for the biggest oilseed crop grown in the season to 12.2 million tons on Oct. 28 from 12.98 million tons.

Reserves Drop



Stockpiles of cooking oils at Indian ports dropped to 1.47 million tons on Oct. 1, the lowest since January, according to the Solvent Extractors’ Association. Inventories may have reached 1.6 million tons at the start of November, said Bajoria. India meets more than half its demand through imports.



Palm for delivery in January advanced 0.7 percent to 2,618 ringgit ($816) a ton on the Malaysia Derivatives Exchange today, the highest price since Nov. 4. Prices rose to 2,628 ringgit on Nov. 1, the highest close since September 2012 and 21 percent more than the 2,167 ringgit settlement on July 29, meeting the common definition of a bull market.



“Imports will start to drop from this month as the new crop comes in,” said Pradip Desai, managing director of Mumbai-based broker Palm Trade Services Pvt. “Soybean oil import demand will be lower.”



Vegetable oil purchases in the 11 months through September rose 5.5 percent to 9.66 million tons, data from the association showed. Imports will surge to 10.4 million tons to 10.5 million tons in the year ended Oct. 31 from 10.2 million tons a year earlier, said Bajoria.



Crude soybean oil imports probably fell to 100,000 tons in October from 140,971 tons a month earlier, while sunflower oil purchases may have jumped to 115,000 tons from 48,498 tons, the survey showed.

Source:- bloomberg.com

India's Imports Gained While Exports Grew Negligibly From Ftas: Assocham Study

12-Nov-2013

In the aftermath of signing 15 regional and bilateral free trade agreements (FTAs), while India's imports from these countries and regions increased significantly but our exports to these partner countries either stagnated or registered minimal growth, according to a just-concluded study undertaken by apex industry body The Associated Chambers of Commerce and Industry of India (ASSOCHAM).



India has signed as many as 15 FTAs including preferential trade pacts, while 19 are under negotiations and eight are in the pipeline but India is still grappling with slow growth of exports and sluggish foreign direct investment (FDI) flows from its FTA partners, said Mr D.S. Rawat, secretary general of ASSOCHAM.



These engagements have achieved limited results in terms of increasing trade volumes with member countries and thus main objective of these market opening pacts is only partially being met, said Mr Rawat. There is an urgent need for the government to revisit its strategy of FTAs, bring greater transparency and involve more effective administrative process in their design and implementation to make FTAs more beneficial for India.



Out of the seven major trading partners viz., ASEAN (Association of South-East Asian Nations), Indonesia, Japan, Malaysia, Singapore, South Korea and Sri Lanka with whom India has operationalised FTAs, it has trade surplus with only Sri Lanka and Singapore, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).



Even on the investment front these free trade pacts have not given any extra edge to India so far as during April 2000-June 2013, India received FDI worth $1.25 billion (bn) and $14.75 bn from South Korea and Japan respectively and this year during April-June, India attracted only $224 million worth FDI from Japan while the figure was $2.23 bn in 2012-13 and $2.97 bn in 2011-12.



Considering the negative impact of these agreements on India's manufacturing sector, ASSOCHAM has suggested that trade agreements should be 'self-regulatory' to evade scope of 'safeguard measures' and the advanced partners must not be allowed to salvage Surplus capacities through exports and exploiting concessional duty rates under trade agreements.



Besides, it should be seen that trade agreements do not become a means to fill the country's short-term supply-deficit through exports made at concessional duty rates as it adds an anti-competitive element vis-vis imports from other countries. Therefore, it needs to be complemented with Specific & Time-bound commitment for inflow of Investment, otherwise the purpose of a Trade Agreement gets defeated, highlighted the ASSOCHAM study.



Considering that India's negotiations for comprehensive FTA with European Union (EU) are at an advance stage, ASSOCHAM has suggested the Ministry of Commerce and Industry to from a special team of experts to negotiate FTAs, besides the government should organize FTA outreach programmes to create awareness amid various stakeholders.



As the feasibility/joint studies conducted by the government before commencing talks for any FTA form the basis of negotiations, ASSOCHAM has also suggested for broadening the base of such studies and inviting participation from various stakeholders like academicians, representatives of the marginal, small and medium enterprises (MSMEs) and state government officials. Besides, Indian embassies in these countries should also be engaged to gather sensitive information while conducting such studies.



Other significant points suggested by ASSOCHAM include - constant updation of publically accessible information, consultation with governments at state level before finalizing the pacts, emphasis should be laid on sectors lucrative for domestic players and tariff rates of specific sectors where Indian traders can penetrate aggressively must be looked at.



So far, India has concluded 10 Free Trade Agreements, 5 Limited scope Preferential Trade Agreements and is in the process of negotiating or expanding 17 more Agreements. Besides, at least 9 more proposals for FTAs are under consideration and when completed, these Agreements would cover over 100 countries spread across 5 continents.

Source:- business-standard.com

Global Coffee Exports Touches 110.2 Mn Bags In 2012-13

12-Nov-2013

Global coffee exports touched a record 110.2 million bags in the 2012—13 marketing year on significant rise in shipments from Brazil, Indonesia and Colombia, the International Coffee Organisation (ICO) said.

Exports from India, on the other hand, fell marginally to 5.16 million bags in the same period. World coffee exports stood at 107.71 million bags in the 2011—12 marketing year that runs from October to September the global body said.

“Despite a slight decrease in September, total exports for 2012—13 reached a record volume of 110.2 million bags,” ICO said in its latest report. One bag has 60 kilo coffee.

Of the total exports, Arabica variety of coffee comprised of 68.5 million bags, while Robusta shipments were 41.7 million bags in the same period, it said.

“The most dynamic growth over the last few years has been in exports of Robustas, which reached a record 41.7 million bags, accounting for 37.8 per cent of the world total and 2.1 per cent higher than 2011—12,” the ICO said.

Barring India and Vietnam among top five coffee exporters, the shipments from Brazil, Indonesia and Colombia remained robust in the 2012—13 marketing year.

Export from Brazil, the world’s largest coffee exporter, increased to 30.94 million bags in 2012—13, as compared to 28.86 million bags in the same period last year.

Similarly, the shipments from Indonesia, the world’s third largest coffee exporter, increased to 10.63 million bags from 8.64 million bags, while shipments from Colombia rose to 8.84 million bags from 7.29 million bags in the review period.

However exports from India, the world’s fifth largest coffee exporter, fell to 5.16 million bags in the 2012—13, from 5.36 million bags in the previous year.

The shipments from Vietnam, the world’s second largest coffee exports, also dropped to 19.99 million bags from 21.70 million bags in the review period.

Source:- thehindubusinessline.com

Indian State Companies Delay Closing Of Wheat Export Tenders

India’s three state-owned traders have deferred the closing date for bids to export a total of 340,000 tonnes of wheat from government warehouses for shipment by December due to a public holiday, traders said on Tuesday.



State Trading Corp, MMTC Ltd and PEC Ltd will now close the bid on 18 November instead of 15 November.



The companies are offering the quantity at a floor price of $240 per tonne as part of the latest round of global export tenders.



STC is offering 120,000 tonnes on India’s west coast, MMTC 60,000 tonnes on the east coast, while PEC is offering a total of 160,000 tonnes on both the coasts.

Source:- livemint.com

Essar Billionaires Cut Exports On Refiner Glut: Corporate India

Billionaire brothers Shashikant and Ravikant Ruia, who run India’s second-biggest oil refinery, will increase fuel sales at home as capacity additions in China and the Middle East shrink export margins.



Essar Oil Ltd. (ESOIL) will reduce overseas sales from its 400,000-barrel-a-day plant as it predicts local demand for gasoline and diesel will rise in the year ending March 31, Managing Director Lalit Kumar Gupta said in an interview. The end of an above-normal monsoon in India will help revive diesel demand in Asia’s second-biggest energy consumer, he said.



“Domestic sales will rise and protect margins,” Gupta, 53, said by phone from New Delhi. “Demand in India will increase, and local refineries will be needed.”



New processing capacities in China and the Middle East are set to increase supplies of petroleum products to Asia and erode earnings of export-focused refineries including Essar Oil and Reliance Industries Ltd. (RIL), controlled by tycoon Mukesh Ambani. The coming jump in output has forced Asian oil companies including Japan’s JX Holdings Inc. (5020) and South Korea’s SK Innovation Corp. (096770) to also cut their profit estimates.



“Huge capacity additions coming in Asia over the next one year will weigh on global margins,” Vinay Nair, an analyst at Karvy Stock Broking Ltd. said from Mumbai. “Although Essar Oil is focusing on the domestic market, it isn’t immune to global margin risks.” He doesn’t rate Essar shares.

Source:- bloomberg.com

Oppression upheld as wife failed to pay bank loan after death of her husband using owned co. funds

CL: Where petitioner's husband and respondent No. 2 having formed respondent-company, took a loan from bank, in view of failure of respondent No. 2 to repay said loan out of available funds of company after demise of petitioner's husband, a case for oppression and mismanagement was made out against respondent No. 2 in conducting affairs of respondent-company

Indian Rupee Opens Weak, Down 19 Paise At 63.90/Dollar

Indian rupee continued its downtrend for the sixth consecutive session on Wednesday as it is heading towards 64 per dollar.



The currency fell 19 paise in early trade to 63.90 per dollar as against previous day's closing of 63.71 per dollar. According to Himanshu Arora of Religare, dollar is expected to trade higher in the next session due to weak cues from CPI and IIP.



"Continued strength in the dollar index, as seen in the past few trading sessions may also underpin dollar against the rupee in domestic market," he adds. He says the range for the day is seen between 63.50-64.15/USD.



The dollar holds firm staying near a two-month high against the yen as investors bet that the US Federal Reserve is on course to start reducing its stimulus as early as December.

Source:- moneycontrol.com

IRDA curtails frequency meeting of board meetings; meetings to be held four times a year

Insurance : IRDA (Meetings) (First Amendment) Regulations, 2013 - Amendment in Regulation 3

No mandatory sequencing of imports prior to exports for advance authorisation prior to 14-08-2013, R

FEMA/ILT : Import of Gold by Nominated Banks/Agencies/Entities

IRDA curtails frequency of meeting of Insurance Advisory Committee; meetings to be held twice a year

Insurance : Insurance Advisory Committee (Meetings) (Second Amendment) Regulations, 2013 - Amendment in Regulation 3

Making an unsustainable claim doesn’t lay down enough reasons for concealment penalty, says HC

IT : Mere making of unsustainable claim invokes no penal proceedings

ITAT has no power to dismiss an appeal in limine without examining merits of case

IT: Appellate Tribunal has no power to dismiss appeal in limine for absence of appellant in proceedings

Delay in payment of interest to be compensated by payment of interest on such delayed interest: Delh

IT : Where assessee became entitled to refund of taxes paid and interest under section 244A had become due and payable on tax amount refundable and Assessing Officer did not make payment of interest element on date when tax amount was refunded, revenue would be liable to pay interest under section 244A on said amount of interest up to date of payment

Issue as to excisability of a product can be raised only before Supreme Court, says HC

ST : Question as to whether any goods are excisable or not falls within exclusion in terms of section 35G(1) for which appeal lies only to Supreme Court because said question is an issue directly linked to determination of rate of duty

Sec. 80G approval withdrawn as sum collected by trust in guise of charity was diverted in commercial

IT : Where under guise of carrying out charitable activities after obtaining exemption under section 80G, trust had, in fact, diverted a major part of donations received by it in constructing a shopping complex and amount spent for charitable purpose was very negligible, approval under section 80G(5) was rightly denied to assessee

No tax on income from operation of ships in International waters under India-Denmark DTAA

IT/ILT: Where receipts pertaining to four ships operating in international traffic fell within India - Denmark DTAA, same would not be taxable under Indian tax law

Inevitable TDS obligation even if deduction for impugned exp. is not claimed, Cochin ITAT says

IT: Assessee is liable to deduct tax at source on interest payments, even if it has not claimed same as deduction while computing its total income

Exports Grow Fastest In Two Years

Exports clocked their fastest pace of growth in two years, rising 13.5% to $27.3 billion during October, as demand for goods picked up in the US and Europe and Indian exporters gained from a sharp depreciation of the Indian rupee.



Gold and silver imports fell almost 80% to around $1.4 billion compared to $6.9 billion in October 2012, resulting in trade deficit narrowing to around $10.5 billion, nearly half the level seen a year ago. Oil imports too provided some comfort, rising 1.7% to $15 billion.



Trade deficit has been a major policy headache for the government and investors have raised concerns over financing the huge gap. In recent months, however, with a fall in imports and resurgence in exports, trade deficit is seen to be more manageable, prompting finance minister P Chidambaram to lower the annual estimate for current account deficit to $60 billion or lower, compared to $70 billion projected earlier.

Source:- timesofindia.indiatimes.com

India Sugar Export Sales Near 500,000 Tonnes

11-Nov-2013

India has sealed deals for the export of almost 500,000 tonnes of sugar from its new 2013/14 crop with shipment to be made by the end of January, said M. G. Joshi, managing director of the National Federation of Cooperative Sugar Factories (NFCSF).



He added that the country's aim is to export 3 million tonnes of domestically produced sugar in 2013/14 and advance sales of nearly half a mln tonnes that have already been done.

Source:- blackseagrain.net

India's Cotton Exports May Drop 9% This Yr: Usda

11-Nov-2013

India's cotton exports are expected to drop by 9 percent to 9 million bales in the 2013-14 marketing year on sluggish demand and high prices compared to the global market, a report said.



India had shipped 9.9 million bales in the 2012-13 marketing year (August-July), it added. One bale contains 170 kg of cotton.



"The 2013-14 export estimate is unchanged at 9 million bales. Indian prices have been high relative to international prices over the past few months... Demand from China has also been weak. As reported previously, much will depend on China?s cotton policies," the US Department of Agriculture (USDA) said in its latest report.



However, if India resumes its position as one of the more competitively-priced cotton origins, the pace of exports could accelerate to the extent that there is demand, it noted.



In the last three months, 4,92,565 bales of cotton has been exported, the report added.



On the price front, the USDA said domestic rates have begun to drop with the increase in the pace of arrivals.



The country's cotton output is estimated to be a record 37.2 million bales this year, as against the consumption of 29.5 million bales for the same period, the USDA said.



The report mentioned that the Indian government is working to improve cotton data collection and has issued several notices over the past year concerning mandatory reporting requirements.

Source:- zeenews.india.com

Supreme Court Lets Sales Of Iron Ore Resume In Goa

11-Nov-2013

The Supreme Court gave the go-ahead on Monday for the auction of around 11.46 million tonnes of iron ore already mined in Goa, potentially doubling the country's exports this year to top market China if overseas sales are allowed.



The court also said it would set up a panel to decide on a cap for Goa's iron ore output and this should submit an interim report by February 15, 2014, leaving mining still on hold.



"We are setting up a six-member expert committee to study the cap on production based on carrying capacity of roads and such," Justice A.K. Patnaik said in the Supreme Court.



He did not specify whether the iron ore could be exported after auction. The Supreme Court imposed a ban on exports and production in Goa last year in a crackdown on illegal mining.



The move to allow the sale of mined ore, and the potential export of the same, is unlikely to have any significant impact on the global iron ore supply chain and prices, with the mining ban in Goa remaining for now.



While analysts expect a gradual recovery in Indian exports over the next two years, the pace is likely to be modest and far from the record high of more than 117 million tonnes set in the fiscal year through March 2010.



Spot iron ore prices have fallen about 15 percent from this year's peak of near $160 a tonne as a slower economy curbs Chinese demand while top miners Rio Tinto (RIO.AX) (RIO.L) and BHP Billiton (BHP.AX) (BLT.L) continue to ramp up output.



India used to be the world's third-largest exporter of iron ore, shipping out ore worth more than $7 billion per year, with much of that from Goa state. But restrictions in Goa and neighbouring Karnataka have slashed output and exports.



India's shipments to China have slowed to a trickle at just over 8 million tonnes from January to September, down 75 percent from a year before.



Most of Goa's iron ore goes to China, fetching about $75 per tonne for low-grade ore of less than 52 percent iron content. But domestic steelmakers are also eager for supplies.



Sesa Goa Ltd (SESA.NS), India's top private-sector mining company and a unit of London-listed Vedanta Resources Plc (VED.L), would be the biggest beneficiary if mining resumed in Goa, as it is the largest producer in the state.

Source:- in.reuters.com

Mideast, Africa Drug Importers Seek Discounts After Price Cuts In India

Many small and medium drugmakers are under pressure from buyers in key foreign markets to cut prices, in line with government-mandated price reductions in India.



In May, the government's Drug Price Control Order set price caps on 151 of 348 "essential" medicines amid resistance from the industry.



Now importers in the Gulf region as well as some African nations are demanding that they be given drugs at reduced prices too. As a result, many small and medium Indian drugmakers are finding it difficult to execute export orders. India exported medicines worth $1 billion (about Rs 6,300 crore) to the Gulf and over $2.6 billion (Rs 16,400 crore) to the African region in 2012-13.



The total value of drugs exported during the year was $14.5 billion (Rs 91,600 crore). "We can understand the compulsions of the Indian government to reduce medicine prices for the domestic consumers, but the fact is that it is affecting our drug exports," said PV Appaji, director-general of Pharmaceuticals Export Promotion Council (Pharmexcil).



Rajesh Madan, executive director of Delhi-based Medicamen Biotech, said clients in Saudi Arabia and Ethiopia are asking that they be given discounts for drugs such as Amoxicillin, Ampicillin, and Ibuprofen. "They are demanding that the export prices should not be more than what they are in India,'" he said.



This demand would be difficult for Indian drug companies to meet as there are more compliance and packaging requirements for exports. Under the new DPCO, prices of essential drugs have gone down by as much as 60%.



While large Indian companies with deep pockets have the ability to cut prices, smaller manufacturers are finding it difficult to meet the demands. "We are currently unable to quantify the exact impact of price revision on our bottom line... We urge the government to initiate measures to safeguard Indian pharma exports," said BR Sikri, managing director of Next Wave India, a Himachal Pradeshbased drug manufacturer.



A March report by Alpen Capital on the Gulf pharmaceutical industry estimated the total market size in the region at $8.5 billion (Rs 53,700 crore) in 2012 with Saudi Arabia having a lion's share at about 59%, followed by United Arab Emirates at over 18%.



"The demand from the Gulf Cooperation Council to reduce price is probably the consequence of the drug price standardisation mechanism that is to be introduced in GCC countries by 2014," said Utkarsh Palnitkar, head of pharma and life sciences division at KPMG India. "The report by the GCC essentially claims that the mechanism will standardise drug import prices across the region," he added.



A senior official in the union commerce ministry, who did not want to be identified, said the government is considering measures to safeguard Indian drug exports. "Commerce minister Anand Sharma has brought this issue to the notice of a Group of Ministers."



Next Wave's Sikri said the government should reach out to the drug importing nations and explain the price cuts to them. It should also point out why it was not possible for pharma companies to reduce prices for exports. Medicamen's Madan feared that his could set off a trend. "Not only Gulf countries, but I am also receiving requests for price cuts from certain Latin American nations, such as Brazil."

Source:- economictimes.indiatimes.com

India’S Plans For Gas Export To Pakistan Runs Into Price Issue Wall

With India expressing its willingness to export gas to Pakistan and the state-run GAIL India terming it as a feasible project, Pakistan has asked India to re-consider the high gas price it is asking while India has sought sovereign payment guarantees before entering into any contract.

Officials in the Petroleum Ministry said that while Pakistan is ready for import of gas from India through a 110-km pipeline, it has asked India to re-consider the price of gas. India has expressed its willingness to export 400 million cubic feet of gas per day to Pakistan.

Currently, things are on the backburner in view of the freeze in India-Pakistan relations due to recent incidents on the LoC.

“Negotiations on various commercial aspects of the gas export as well as pricing of gas are being negotiated by both sides. Hopefully, things would be resolved soon,” a senior Petroleum Ministry official remarked.

LNG imports into India are currently in the range of $13-14 per million British thermal units and after including customs or import duty, pipeline transportation charges and local taxes, the delivered price will be close to $21. LNG would be gasified by the Indian side as Pakistan does not have an LNG import facility.

For its part, India has sought sovereign payment guarantees from Pakistan before signing an export contract. The pipeline would start from Jalandhar in Punjab leading through Attari. “We want Pakistan to provide payment guarantees before GAIL India enters into a gas supply contract with any Pakistani entity. We want sureties for three months payment and advance termination commitments,” the official added.

Both India and Pakistan have till date held five rounds of negotiations and it has been found technically feasible to export gas into Lahore.

GAIL India officials said gas in its liquid form (liquefied natural gas, LNG) will be imported through terminals in Maharashtra or Gujarat and then moved through GAIL’s existing pipeline network till Jalandhar.

Pakistan is faced with a serious energy deficiency and is keen on importing gas from India to meet its rising energy needs. This deal has become crucial as there is uncertainty over the completion of the Iran-Pakistan gas pipeline due to U.S. pressure. Islamabad plans to take 1-1.5 million tonnes of LNG. Pakistan, with a total electricity generation capacity of about 20,000 MW, faces a huge power deficit as well.

The pipeline project is also looked upon as a feasibility study for the Turkmenistan-Afghanistan-Pakistan-India pipeline through which both Pakistan and India propose to import natural gas from the Central Asian nation.

Source:- thehindu.com

Analysts Happy With Fall In Imports By India, Growing Exports

11-Nov-2013

India’s exports kept up the pace for the fourth straight month by expanding at 13.5% -a 24 month high. Imports too declined in Oct’13, though the pace slowed down a little. Non-oil imports declined by 22.8%, with oil imports posting a marginal pick-up in growth. Cumulative trade balance was at $90.7 billion during Apr-Oct’13.



"The good thing is that gold imports did not show a significant turnaround in Oct’13, though on a sequential basis such imported jumped by 71.3%. Also, India has gained in market share in apparel exports to USA in current fiscal, an encouraging development," said State Bank of India in a note.



India’s exports registered a growth of 13.5% in Oct’13 to $27. 3 billion from $24. 0 billion in corresponding month of last year. This is the fourth straight month of double-digit growth in exports and pace of growth in Oct’13 is the highest in last 24 months. Cumulative value of exports for the first seven months of FY 14 (Apr-Oct) were valued at $179. 4 billion as against $138. 7 billion, registering a year on year growth of 6.3%.



If Oct’12 export figures were not revised, export growth would have been lower at 9.5%.



Imports during Oct’13 were valued at $37.8 billion, a negative growth of 14.5% over the level of imports valued at $44. 2 billion in Oct’12. Oil imports in Oct’13 were valued at $15. 2 billion, 1.7% higher than $15. 0 billion in the corresponding period last year. Provisional data showed that gold import increased to $1.4 billion in Oct’13 from unrevised $800 million a month earlier, a growth of 71%. However, the good thing is that Oct’13 gold import is still 80% lower in value terms against the gold import of the same period last year.



"We continue to maintain a trade deficit at $170 billion for FY14, with a CAD at $55 billion / 3. 1% of GDP, with downside," it added.



"A significant decline in gold imports and weak capital and consumption goods’ imports, due to subdued domestic demand, will help lower growth in non-oil imports during rest of this year," predicted CRISIL Research. "Improvement in exports due to a weak rupee, low base and improved global demand, will also aid in lowering trade deficit in 2013-14. Lower merchandise trade deficit, along with a healthy growth in IT/ITes exports, create downside to our forecast of current account deficit at 3.9 per cent of GDP for 2013-14," it said.



"We expect the current account deficit to moderate to USD 54bn in FY14 (year ending March 2014) from USD 88.2bn in FY13 due to better exports, weak domestic demand and a policy-driven reduction in gold imports," said brokerage Nomura. "Large inflows under the FCNR(B) deposit scheme and the delayed QE taper have led to a surge in capital inflows since September. However, with the FCNR (B) deposit window to close soon (by end-November), oil marketing companies’ demand gradually being shifted back to the market and changing expectations around the US QE taper (our US economists now assign a higher probability to a taper in January 2014 relative to March 2014), financing may remain a challenge," it added.



“The EXIM Trade Data released today reaffirmed the reversal of negativity," said Sanjay Budhia, Chairman of CII's National Committee on Exports & Imports. "Exports since last 3 months, from August , September and October 2013, have come to positive growth trajectory due to stability in the global market, particularly with our large trading partners like US and Europe.



"Also the timely Intervention by the Commerce Ministry in terms of expanding Focus Product and Focus Market Scheme have helped Indian Exporters to withstand the vagaries of tough competition. CII strongly recommends restoration of Duty Drawback Rates which have been reduced drastically last month. This will further help in gaining and maintaining India’s Share in Global Market," he added.



SBI noted that the incremental share of price sensitive items in Indian exports has been higher in current fiscal, though the pace has slowed down a bit in recent months.



The bank's research team has an export target of $320 billion for this year, nearly matching the Government target.



"In principle, coming festive season would further boost export demand in the developed economies aiding trade deficit to narrow down to a comfortable zone," it said.



However, cumulative oil imports in Apr-Oct FY14 were $98. 1 billion, 3.3% higher than the oil imports of the corresponding period last year. Meanwhile, non-oil imports contracted for the fifth consecutive month in row to $22.6 billion at 22.8% lower compare to Oct’12. H owever, tracking the trade deficit on a month on month basis, trade deficit increased in Oct’13 after having declined to a two-and-a-half-year low the previous month.



The deficit widened to $10.6 billion from $6.8 billion in Sep’13. A year earlier, the gap was $20.2 billion. Widening trade deficit in Oct’13 was aided by higher oil and gold demand. India’s share in the US textile import has remained promising. In the first eight months of 2013 (Jan- Aug) , India’s share has increased to 6.2% f rom 5.8% in 2012 and 5.9% in 2011. Further recovery in the US would add to the domestic export revenue.



"Imports contracted 14.5% y-o-y in October compared with a decline of 18.1% in September, which reflects continued weakness in domestic demand.Overall, global demand is improving, but higher imports (of oil, gold and others) have led to the deterioration in the trade deficit. The rise in imports is due to seasonality, as imports tend to rise ahead of the festival season. On a seasonally adjusted basis, we estimate that the trade deficit narrowed to USD7.3bn in October from USD7.5bn in September," Nomura said.

Source:- rtn.asia

Gold, Silver Imports Up 62.5% To $1.3 Bn In October

After recording significant decline in September, gold and silver imports jumped by 62.5 per cent to $1.3 billion in October this year.



In September the imports fell by over 80 per cent year-on-year to $0.8 billion. In October 2012, the imports stood at $6.8 billion.



The RBI's 80:20 scheme for gold imports had left many confused, leading to imports being held up at customs.



"Gold and silver imports in October was high due to the confusion over 80:20 issue," Commerce Secretary S R Rao said.



During the first seven months of this fiscal, however, gold and silver imports declined by 12.86 per cent to $24 billion from $28 billion in the same period last year.



The inbound shipments grew mainly due to the festival season and clearing of air on a RBI norm for gold imports.



Increase in the gold and silver imports have pushed the trade deficit to $10.5 billion in October, the second lowest during the year, from $6.76 billion in September 2013. But the trade gap is low as compared to October 2012 when it was $20.2 billion.



The current account deficit (CAD) touched a historic high of 4.8 per cent of GDP in the last fiscal. The rise in CAD was mainly attributed to high imports of gold and petroleum products.



The high level of CAD puts pressure on the rupee, which has depreciated by about 15 per cent since April 30, exposing the economy to balance of payments problems.



The government had recently hiked import duty on gold for the third time in a year to 10 per cent from 8 per cent and also banned imports of gold coins and medallions.



Further, the RBI also restricted import of gold to a consignment basis by banks.



India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Import of the precious metal stood at 845 tonnes in 2012-13.

Source:- economictimes.indiatimes.com

India Assures Japan To Augment Port Infrastructure

11-Nov-2013

India today assured Japan to augment its port infrastructure, particularly at Ennore and Chennai to facilitate import of automobile components and cars from Japan and at the same time, evinced interest in seeking assistance for its port projects.



The development comes in the wake of Shipping Minister G K Vasan leading a delegation to Japan, which met Minister of Land, Infrastructure, Transport and Tourism, Japan, Akihiro Ohta.



"Vasan discussed several issues relating to logistics, infrastructure and development of port sector in India. He explained the developments that were taking place in India in the ports sector and assured Ohta that concerns regarding infrastructure and connectivity of ports are being addressed expeditiously, " an official statement said here.



Various Japanese Companies have been evincing a lot of interest in enhancing their use of the Ennore Port and Chennai ports.



Assuring to further develop these ports, Vasan said: "Ports in Ennore and Chennai are catering to Japanese car exporters like Toyota and Nissan who have exported about 42,000 and 3 lakh cars, respectively."



Vasan also wanted to know the "possibility of JICA (Japan International Cooperation Agency) assistance to VOC port at Thoothukudi for the upcoming Outer Harbour Project, while thanking the Japanese government for its support to infrastructure projects.



Outer Harbor Project of VO Chidambaranar port was announced in the Budget at an estimated cost of Rs 7,500 crore to be taken up in phases for completion by 2021.



In the phase-I of the project, five berths are proposed to be constructed at an estimated cost of Rs 5,421 crore, resulting in capacity addition of 43.30 million tonne per annum.



With the completion of this project VOC Port will move closer to fulfilling its goal of becoming a hub port.



"Ohta, while acknowledging the existing cordial relationship between India and Japan, assured that Japan will carry forward the momentum. He...expressed Japan's interest in shipbuilding and recycling industries in India," the statement said.



Both the Ministers stressed the importance of a long-term understanding and cooperation in the maritime sector as part of the overall robust bilateral relations, it said.



Japanese automobile manufacturing companies like Toyota, Mitsubushi, IsuzuBSE -0.80 %, Nissan and Toshiba have been using Chennai Port for importing automobile components for their factories located in Chennai.

Source:- economictimes.indiatimes.com

Transferee to prove his title on pledges shares to get them registered in his name if they are free

CL : Where transferee got shares by way of pledge and company refused to transfer shares on ground that order of attachment of shares which were standing in name of transferor had been received, transferee should prove its title based on pledge before DRT and once shares were made free from attachment company would required to register transfer of shares

Valuation method consistently followed couldn’t be rejected all of a sudden without cogent reasons

IT : Where assessee's method of extracting yield of oil from groundnut seeds was consistently accepted in past, in absence of bringing on record any cogent reasons for rejecting same, addition made by Assessing Officer merely on basis of its own estimation of production, was not sustainable

HC upheld ad hoc additions as assessee failed to explain causes for falling rate of gross profit

IT: Where consumption decreased and wastage increased and there was no explanation for fall in gross profit rate, ad hoc addition was sustainable

Mere denial of sec. 10B relief doesn’t invoke concealment penalty, rules HC

IT: Assessee was not liable for penalty merely because claim for deduction was denied

Delay in passing review order by Committee of Commissioners couldn’t be condoned

ST: If review order of Committee of Commissioners/Chief Commissioners, directing adjudicating authority to file appeal, is passed beyond prescribed period, such delay in passing of review order cannot be condoned and any appeal filed in pursuance thereof is not maintainable

No FTS under Indo-USA DTAA if services rendered don’t clear ‘make available’ benchmark

IT/ILT: Where assessee had not made available any technical knowledge, skill, experience etc. services rendered by assessee would not be chargeable to tax as FIS under article 12 of Indo-US DTAA

Sum incurred on sponsorship of college programmes was an advertisement exp; allowable as revenue exp

IT : Where foreign travels of directors/executives of assessee were necessary for business of assessee and all relevant bills were produced for such expenses, foreign travels expenses to be allowed

Indian Oil, Coal India Stake Sale Likely Next Month: Report

India has revived plans to sell stakes in two state-owned companies to raise about $2.3 billion to boost public finances, aiming to push through a sale by mid-December to take advantage of a share market rally.



Two sources with direct knowledge of the matter said investor roadshows will be launched in the United States on Tuesday for a 10 percent stake in state refiner Indian Oil Corp (IOC).



The government's Department of Disinvestment (DoD), which oversees stake sales in state companies, has also completed most of the overseas roadshows to sell a 5 percent stake in state miner Coal India, which could fetch about $1.5 billion, the sources told Reuters.



The department hopes to launch the stake sales in the two state companies before December 15, they said, after which overseas investors typically start to wind down for Christmas and New Year holidays.



"We would like to launch both before mid-December, but not sure if we will be able to do that," one of the sources said.



The government's planned sale of stakes in Indian Oil and other state companies including Coal India is critical to relieving pressure on public finances that could put the country's investment-grade credit rating at risk.



India has targeted raising $6.4 billion from selling stakes in state companies in the fiscal year ending March 2014, but has so far managed only $233 million, as ministries squabbled over the timing of the issues and the rupee fell against the dollar.



IOC's share sale had been set for October, but planned roadshows were cancelled after the oil ministry pulled out, citing the weak share price and uncertainty over a new fuel-subsidy formula.



The Coal India stake sale has been halved from 10 percent to 5 percent after union opposition.



"IOC (Indian Oil Corp) roadshows are starting from the 12th (of November), even though it is a difficult issue to market because of the sector problems," the source said, referring to losses that state oil retailers incur because of selling diesel, kerosene and cooking gas at state-capped rates.



The sources declined to be named due to the sensitivity of the matter. DoD officials, as well as officials at Indian Oil and Coal India could not be reached for comment.



Indian Oil, India's largest refiner and fuel retailer, on Friday reported an 82 percent fall in net profit on account of foreign exchange losses and lower compensation from the government for losses on fuel sales.



India's oil ministry has forecast revenue losses of 803 billion rupees for state fuel retailers IOC, Bharat Petroleum and Hindustan Petroleum in the second half of this fiscal year, up from 623 billion in the first half.



The divestment department is keen to push through the stake sales to take advantage of a share market rally that sent India's benchmark stock index to a record high this month on the back of strong foreign inflows. The index is up 6.4 percent this year.



The Indian Oil investor roadshows will be held in New York and Boston. The Indian cabinet cleared the sale in August.



At current market prices, the 10 percent stake sale in Indian Oil could fetch New Delhi around $800 million. The government owns nearly 79 percent in Indian Oil, and 90 percent in Coal India.



So far, officials have pitched the Coal India offering to investors in the United States and Britain, and will proceed to Australia and South East Asia this week, a third source said. Roadshows for local investors will be held after that, he added.

Source:- profit.ndtv.com

Exim Bank Identifies 15 African Countries For Good Investment.

The Export-Import Bank of India has identified 15 African countries, including Egypt, Kenya, South Africa and Nigeria, as good investment destinations, a top official has said.



Many Indian companies keen to take advantage of the opportunities in Africa were holding back because of a lack of information on African economies, Exim bank's executive director David Rasquinha said.



He said the top countries identified by Exim Bank were Algeria, Angola, Cote d'Ivoire, Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Morocco, Mozambique, Nigeria, Kenya, Tanzania, South Africa, Zambia, and Uganda.



Major projects of Exim Bank on the continent include vehicle financing of the Tata Group and wind turbine ventures of the Suzlon Group in South Africa; electrification projects in the DRC and Mozambique; assisting the sugar industry in Ethiopia and housing development in Gabon.



The bank has representative offices in Addis Ababa, Senegal and Johannesburg, where it started operations in 1998, not long after the first democratic elections in 1994.



But despite initiating many projects from its Johannesburg office, Rasquinha expressed concern that a fifth of India's exports to Africa were to South Africa.



India still lagged behind China, Germany, the US and Japan in exports to Africa in areas where the country had expertise, such as optical and medical apparatus, footwear, meat and ceramics, Rasquinha said.



Exim Bank's stated objectives of financing development plans have seen it assisting similar ventures in several African countries.



In South Africa, Exim Bank has helped the Industrial Development Corporation in the application of export finance programmes.



In Nigeria, home to Africa's largest film production industry, Exim Bank has assisted the Nigerian Export-Import Bank in developing funding models for projects that hold the promise of foreign exchange earnings.



Source : economictimes.indiatimes.com

Finmin Keen On Indian Oil Disinvestment In November.

The Finance Ministry wants to sell 10 percent of the government's stake in Indian Oil Corp (IOC) by end of the month in a bid to achieve its Rs 40,000 crore disinvestment target.



"We want to push the IOC stake sale first, within November itself. This will pave the way for disinvestment of other oil sector PSUs like Engineers India," a senior Finance Ministry official told PTI.



Last month, the Department of Disinvestment put off overseas roadshows for the IOC stake sale following opposition from the company and the Petroleum Ministry, which cited poor market conditions. The roadshows were planned in London, US, Singapore, Hong Kong and Dubai.



IOC shares rose 1.62 percent to Rs 213.20 at the close on the BSE on Friday. They have fallen 43 percent from the 52-week peak of Rs 375 on January 18.



At the current price, the sale of 19.16 crore IOC shares, equivalent to 10 percent of the government's holding in the company, would fetch more than Rs 4,000 crore, which is 10 percent of this financial year's disinvestment target.



The government held a 78.92 percent stake in the country's largest oil refiner as of September 30.



Citibank, HSBC and UBS Securities are among the five merchant bankers selected to manage the IOC share sale.



IOC Chairman R S Butola had written to the Oil Ministry in September, saying, "Current share price of IOC, already undervalued, may not fetch the fair value in the prevailing uncertain environment and investors in all probability are likely to factor in huge discount in their assessment of share price."



A share sale under present conditions could fetch a low price and would further dent IOC's efforts to raise loans for crude oil imports.



IOC posted an 82.5 percent drop in net profit to Rs 1,683.92 crore for the July-September quarter after losses from foreign exchange and sales of diesel, cooking gas and kerosene below cost.



The government is waiting for disinvestment in IOC before going ahead with plans to sell 10 percent in Engineers India Ltd (EIL).



At the current market price of Rs 175.10, the sale of 3.36 crore EIL shares would fetch about Rs 600 crore.



So far, the government has raised about Rs 1,325 crore from stake sales in six companies.



Source : zeenews.india.com

Sugar Industry Says Exports Crucial To Reverse Current Bearish Trend

10-Nov-2013

While the Food and Agriculture Organisation (FAO) has struck a bullish note on sugar in its recent outlook, the Indian industry is striking a different note.



The industry feels that unless 3-4 million tonnes are shipped out of the country, sugar prices are unlikely to stabilise, reversing the downtrend.



FAO last week said that global sugar prices would rise in the coming days on unfavourable weather conditions impacting harvest in Brazil, the largest sugar producer.

Global prices



“Sugar quotations increased by 9 per cent from July to October 2013. Although early in the season, the size of the production surplus remains uncertain, indications are that it will be much smaller than early estimates and not as large as the past two years. If these early assessments prove true as the season progresses, it will certainly lend some upward support to world sugar quotations,” it said.



Global raw sugar prices averaged 19.31 cents a pound during January-June, down 20 per cent over the corresponding period a year ago. However, in September, prices averaged at around 17.4 cents a pound and rose to around 18.7 cents a pound in October.



FAO estimates the global sugar output for 2013-14 at 180.2 million tonnes, marginally higher than last year. It expects bulk of the growth in global output to come from developing countries, such as India, Thailand and Pakistan.



However, FAO said: “India’s competitiveness on the international market is being constrained by rising production costs and falling world prices, which may limit further gains in world markets”. It has pegged India’s sugar output at 25.5 million tonnes for the 2013-14 season, while forecasting exports at 2.1 million tonnes.

Unviable exports



The Indian industry has begun the 2013-14 season with a huge opening balance of 8.5 million tonnes, which is weighing on sugar prices that are in the bearish phase.



Mills are under pressure to liquidate stocks – that’s resulting in excess market supplies dragging the price. “Exports are currently not viable from India, but sugar can be pushed out, provided there is some support from the Government, say, in terms of transport subsidy for both inland and oceanic freight,” said Abinash Verma, Director-General of Indian Sugar Mills Association.



The Government had provided export subsidy in 2006-07 to ship out about 60 lakh tonnes of sugar. Mills in coastal areas then received a subsidy of Rs 1,350 a tonne, while those in the hinterland got Rs 1,450 .



“A subsidy of Rs 1,000-1,500 is good enough to help us export the surplus sugar,” said Verma. Also, the Government could help millers by providing interest-free loans to tide over the current crisis.



Earlier, the Government had extended such interest-free loans in 2007-08 to an extent of Rs 3,500 crore.



Sugar mills currently owe about close to Rs 4,000 crore to farmers for cane purchases made last year. Crushing for the current season is yet to start, as mills are seeking clarity on cane pricing, while farmers are demanding a higher price for their produce. An estimated half a million tonne raw sugar from the new crop has already been contracted for exports, mainly from Maharashtra.

Source:- thehindubusinessline.com

A New Gold Standard For Imports

Is there a win-win situation for gold imports? At the heart of this problem is the government's objective of containing gold imports to, say, 600 tonnes on an annualised basis against over 1,000 tonnes in 2011-12.



The recent policies on the 20/80 ratio (requiring 20 per cent of imported gold to be used for exports) and the abolition of credit have ensured that gold imports in August, September and October have been a fraction of normal levels. So, the target will certainly be achieved in the 12 months starting August 2013.



However, with a 10 per cent customs duty on a commodity like gold and such complex procedures on legal imports it is natural that smuggling will increase, as it seems to have in the last few months. Three aspects confirm that this is indeed the case:



(i) the industry does not seem to be facing any kind of supply constraint, despite the crash in official imports;



(ii) incidents of smugglers getting caught have sharply risen; and,



(iii) there was a 6 to 7 per cent difference between the price at which you could import gold through the regular channels and the price at which gold was available in the local market.



Smuggling has to be funded by dollars outside India in exchange for rupee payments within India. This would mean that dollars that would otherwise have come into India will not come in now. Non-resident Indian (NRI) remittances would be a good part of these dollars.



If the situation continues, it is possible that actual imports (official and unofficial) could significantly exceed the 600-tonne goal and make the nation spend, directly and indirectly, more foreign exchange than we could have.



So how can the government create a win-win situation? Here are some suggestions:



The government should issue a licence equivalent to about 50 tonnes per month to all importers who have been importing gold, and use their track record to pro-rate their share of this 50 tonnes. We would end up capping the legal import into India at 600 tonnes through this mechanism.



The government should immediately remove the 20/80 procedures, which complicates legal imports significantly and consequently make other routes even more attractive, given that the official route does not meet domestic demand satisfactorily.



With steps 1 and 2, gold would flow freely into the country but only at the rate of 50 tonnes per month. And because it flows freely, the incentive for importing goal via the unofficial route will be reduced.



It would be naive and certainly impractical to think of reducing the customs duty since each one percentage point of duty fetches the government nearly Rs 2,000 crore of revenue. So, the price of reducing or scrapping it is perhaps too large to pay on the fiscal side. Instead, if we take a small percentage of the customs duty income and create a very attractive incentive programme for customs officers, it will make a large number of honest and vigilant officers even more so, creating an effective deterrent effect against smuggling.



The government should get the State Bank of India (SBI) (which is already familiar with the gold deposit scheme successfully targeting temples) to conceive and launch a visible and persuasive gold deposit scheme - with a catchy name and TV advertising - with a one- to three-year tenure for individuals. The government should define an annual cap of 200 tonnes for this scheme, to limit its effect on our current account deficit in the future since we will have to import later to pay these individuals back. As soon as we get traction on this scheme, the government should reduce the monthly licence limit from 50 tonnes correspondingly, so that total imports (current import for current consumption plus future import for current consumption) are together contained within 600 tonnes.



Many factors favour the success of this 200-tonne mobilisation. First, this amount is less than one per cent of total gold deposits in India and under 10 per cent of the likely coin/bar stock that customers can get back in the same form after the tenure of the scheme.



Finally, the government should bring in a regulation to temporarily ban the sale of coins and bars (it has banned their import but not yet their sale). And in their place, the government should introduce gold options that provide the same benefit (investment) to the public, without burdening the seller with the need to underpin the sale with physical gold. This means that the gold-investment market can thrive without the need to import gold for it.



Why should these steps create a win-win situation? First, the 20/80 rules make it quite complex for the smooth daily flow of gold into the country. This, combined with the 10 per cent customs duty, will continue to make smuggling very attractive (even necessary!) to feed domestic demand. Also, the unofficial supply can well feed the coin demand. The combined real flow of gold into the country could well exceed the 600-tonne target, though the concomitant reduction in NRI remittances can never be pinpointed. The government may congratulate itself on achieving its 600-tonne target but the reality may be something much higher. These suggestions will enable the industry to look at legal imports as the first option, thus making smuggling much less attractive, remove the coin and bar demand unequivocally, bring the total import bill (visible and invisible) under control and simultaneously make it easy for the industry to go about its work.

Source:- business-standard.com

sec. 434 notice need not be served on respondent co. as only requirement is to send notice to Regist

CL : There is no requirement that statutory notice envisaged by section 434(1)(a) has to be served on respondent company as only requirement is to send notice to registered office of company

Appeal To Govt To Lift Ban On Potato Export

10-Nov-2013

Potato traders in Hooghly and Burdwan, the two biggest producers of the crop in Bengal, have appealed to the government to lift the ban on export of the tuber to other states as they have taken advance payments for consignments.

The traders said they were losing goodwill for their failure to deliver the consignments within the stipulated time.

The potato traders in the two districts sell half their produce every year to Odisha, Bihar, Jharkhand, Assam, Andhra Pradesh and Tamil Nadu.

The Bengal government has banned the export of potatoes after a shortage pushed up prices of the tuber in the state.

Earlier this week, police stopped at the Duburdih checkpost in Burdwan’s Kulti 23 trucks carrying 300 tonnes of potatoes to Jharkhand. The trucks had valid challans.

The traders were paid Rs 11.60 a kg and the potatoes were sold in retail markets in Asansol at Rs 13 a kg, a price pegged by the chief minister. The traders were supposed to sell the consignment at Rs 15 a kg in Jharkhand.

Sagar Sarkar, the president of the Burdwan chapter of the West Bengal Progressive Potato Traders’ Association, said: “We have appealed to the agri-marketing department to allow us to export potatoes to other states as many of us have already taken advance payments for consignments.

“Over the years, we have developed good working relations with potato traders in other states. But we are losing goodwill because of the ban.”

Asked if export of potatoes would push up prices in Bengal further, Sarkar said around 25 lakh tonnes of the crop were lying in 440 cold storages across the state. Denying there was a shortage, he said the stocks were enough for Bengal’s consumption in the next two months.

“Cultivation of potatoes for this season has begun. The new crop will reach the markets in two months. On top of that, 25 lakh tonnes of potatoes are lying in cold storages. A huge quantity of the crop will rot if we don’t export now,” Sarkar said.

Traders said the demand for potatoes in Odisha, Andhra Pradesh and Tamil Nadu had shot up as cultivation there had been affected by Cyclone Phailin in September.

The association said around 17,000 potato traders in Hooghly and Burdwan would incur a loss of Rs 250 crore if the ban was not lifted.

“We usually export the super S1, super six and K22 varieties of Jyoti potato to other states as their demand in Bengal is less,” said Ashok Makal, the secretary of the association’s Hooghly chapter.

An agri-marketing department official in Burdwan, Priyadarshi Sen, said he had received a letter from the potato traders, requesting that the ban be lifted. “I have forwarded the letter to my superiors,” he said.

Agri-marketing minister Arup Roy declined comment, saying the chief minister was looking after the department.

This year, the agri-marketing department has set a target of producing 22.18 tonnes of potatoes in Burdwan and 33 lakh tonnes in Hooghly. Traders said both districts were expected to exceed the target.

People protesting Bengal’s decision to ban potato export blocked two national highways in Odisha’s Balasore for three hours yesterday, stopping trucks carrying fish and other commodities to Bengal.

The Odisha government said no truck carrying potatoes reached the state from Bengal today.

Bengal Opposition leader Surjya Kanta Mishra of the CPM accused chief minister Mamata Banerjee of “inept handling” of the potato crisis. “The decision to stop trucks going to Odisha and Jharkhand with pototoes is a step in the wrong direction,” he said.

Source:- telegraphindia.com

Import Of Raw Jute Rises As Local Production Falls

Jute factories in eastern Nepal have been sourcing raw jute from countries like India and Bangladesh as local production of this cash crop is decreasing with each passing year.



According to Nepal Jute Mills Association (NJMA), local production can meet only around 20 percent of the demand.



If jute mills in the country are to operate to their full capacity, they consume around 100,000 tons of jute a year. Annual production of raw jute hovers around 18,000 tons.



“Jute mills in Sunsari-Morang industrial corridor are not operating to their full capacity because of the shortage of raw materials. They are utilizing only around 60 percent of their installed capacity,” Rajkumar Golchha, president of the NJMA, told Republica. “Most of the mills in the corridor are importing raw jute from India.”



The demand for raw jute increased further after Biratnagar Jute Mill recently resumed operation after a hiatus of five years. Arihant Multi-Fibers - the largest jute mill in the corridor - alone consumes around 75-100 tons of jute every day.



Though industrialists and farmers have been putting pressure on the government to promote jute farming, the government has been turning deaf ear to their demands, according o the officials of NJMA.



Shyam Paudel, general manager of Biratnagar Jute Mills, said the government should come up with fresh incentives to encourage more farmers toward jute farming. “Earlier, Nepal used to export raw jute to India and Bangladesh. The situation has become opposite now,” he added.



Industrialists say Nepal´s raw jute production is declining because of the primitive farming method which is costly. As the rate of return is low, many farmers have stopped jute farming and started cultivation of other crops which give better yields.



According to Trade and Export Promotion Center, Nepal imported raw jute worth Rs 2.3 billion in fiscal year 2012/13.



There are 10 jute mills in Sunsari-Morang industrial corridor. They employ more than 20,000 workers.

Source:- myrepublica.com

Volkswagen Revs Up Exports From India, Ships Vento To Mexico

German carmaker Volkswagen is ramping up exports from India and is shipping its mid-sized Vento, a sedan, to Mexico to add to Asian and African markets where it sells cars made at its Pune facility. The company's Indian arm, which started exporting the left-hand drive Vento to Mexico in October, said the country is already its biggest export market.



"The total units exported so far from Pune are over 27,000 units as of October 2013...Almost every second car from the export volumes is going to Mexico currently...The biggest export market for Volkswagen India is currently Mexico," Mahesh Kodumudi, president and managing director of Volkswagen India, told PTI in an e-mailed interview.



With the entry in Mexico, Volkswagen India is marking its foray into a third continent - North America.



Currently, the carmaker is exporting the Polo and Vento models from India. Volkswagen India began exports in 2011.



"Currently, we are exporting to 32 countries across three continents...We have been adding more markets and hence the number is going up and there is no annual number that can be given," Mr Kodumudi said when asked how many cars are produced annually for exports.



"As of now, up to 20 per cent of the production at Volkswagen Pune plant is for export markets."



About the plant's output, he said, "For 2012, the production was approximately 96,000 cars from Pune plant. By the end of 2013, we should have similar number, but it depends on how the demand is from the market."



He also said production could be increased, depending upon demand from the market.



"In case there is increase in demand, we have the capacity to ramp-up the production for increased exports," he added.



When asked if the company planned to add more models to the export line-up, he said, "We do not have any plans for other products as of now."



On whether the company planned to enter new markets, he said, "For now, we do not have any more markets decided after Mexico."

Source:- profit.ndtv.com