Non-Industrial Diamonds Top Export Earner In Fy16

India earned about $16.5 billion from the export of non-industrial diamonds, the top exported commodity in April-January 2015-16. It imported petroleum and crude oil worth $57.67 billion in the period.

This was revealed on Tuesday after the commerce ministry unveiled an online portal aimed at analysing foreign trade statistics.

Developed by the Directorate General of Commercial Intelligence and Statistics (DGCIS), the portal is aimed at providing easy access to foreign trade data. "The ministry has drawn a lot of flak over falling exports, the figures for which need to made available to the public in an easy manner," a ministry official said on conditions of anonymity. The official said the initial plan was to put up data for five years.

The portal can be accessed by public.

India's cumulative merchandise exports for 2015-16 fell to $261 billion - a five-year low. The figure was $310 billion in the previous financial year, which had also seen a decline in exports. The cumulative export target, initially set by the government at $300 billion, was revised downwards to $260-270 billion last month after merchandise trade remained negative throughout the year. Exports had last recorded growth in November 2014, rising 7.2 per cent y-o-y. The website showed that the US was the top destination for Indian merchandise exports, with $33.67 billion worth of goods finding their way to the country, followed by the UAE ($25.10 billion) and Hong Kong ($9.67 billion).

 

Source:business-standard.com

India's April Gold Imports Down 67.3%

NEW DELHI: Gold imports fell sharply by 67.33 per cent to 19.6 tonnes in April 2016 as jewellers' strike opposing one per cent excise duty on non-silver jewellery significantly hit demand for the metal, according to gold and silver refiner MMTC Pamp.

"Gold imports declined to 19.6 tonnes in April, 2016 as against 60 tonnes in the year-ago period due to poor demand," a senior official at MMTC Pamp told PTI.

Of the total imports, bullion shipments were at 13.14 tonnes in April this year, down from 54 tonnes in the year-ago period, he said.

Citing reasons for the fall, the official said, "not much was imported due to poor demand in the wake of jewellers' strike in April. Whatever gold that was imported in January and February was being used."

Jewellery houses had remained closed since March 2 after Finance Minister Arun Jaitley in Budget proposed levying 1 per cent excise duty on non-silver jewellery. The 42-day strike was temporarily called off after the government assured that there will be no harassment by excise officials.

There was import of small quantity of gold for export purpose, but that has not been included in the total gold imports for April, he added.

MMTC Pamp is a joint venture between state-run MMTC and Switzerland's PAMP.

In 2015-16, the country is estimated to have imported 750 tonnes of gold, as against 971 tonnes in the preceding year. This does not include the imports done for export purpose, according to the MMTC Pamp.

India, the world's largest consumer of gold, imports around 800-900 tonnes of gold annually.

 

Source:economictimes.indiatimes.com

Hazardous E-Waste: Apple Can't Import Or Sell Second-Hand Phones In India

NEW DELHI: The government has sounded out Apple that it is in-principle against allowing import and sale of second-hand phones in India to prevent dumping of hazardous electronic waste.

This deals a setback to the smartphone maker's expansion plans in a market where it sees huge potential amid overall slowdown of its sales.

"We conveyed our views on the matter and the representatives respected our stand," a senior government official said.

The government's views come as a dampener for Apple which has aggressive expansion plans in the fastest growing smartphone market in the world where the Cupertino-based smartphone maker sees huge potential.

This would be the second time Apple faced a roadblock to importing pre-owned certified or refurbished iPhones in a country where the US technology company seeks out price-conscious Indian consumers to grow its base.

Apple declined to comment to ET's query. The company had sought permission from the government to import second hand iPhones for sale in India, a country where its sales are doubling on-year and where it plans to bring its iconic retail stores too.

ET had reported last month that the views of the Department of Electronics and Information Technology (DietY) views were communicated to the environment ministry and the Director General of Foreign Trade, that it did not support import of second-hand consumer products as it contributed to electronic waste being dumped in India.

Handset makers in India had also opposed Apple's move arguing that the move could potentially flood the market with second hand phones, severely hampering the government's Make in India program that is aimed at encouraging local manufacturing.

The American company, which has about 2% share of the booming Indian smartphone market by volume, has set its sights on India which CEO Tim Cook said separately on Tuesday, had "huge market potential" for its products.

Apple has continued to climb in India, and has increased shipments by 56% to make it the second fastest-growing vendor in the top 10 in the first quarter, Singapore-based research firm Canalys said Tuesday.

The iPhone and iPad maker is closing the gap with market leader Samsung in the over $300 (Rs 20,000) segment where it grew its market share to 29% in the first quarter of 2016, from 11% a year ago. Samsung's market share in the same category fell from 66% in the first quarter of 2015 to 41% in the same period of 2016.

India is important for the technology giant and it is "really putting energy" in the South Asian nation that will begin rolling out high-speed wireless broadband networks this year, Cook said in a TV interview with a US channel.

Cook said that the company has "great innovation" in the pipeline and new iPhones that will attract people in markets like India, equally recognizing India's massive young demographic as a ready market.

"India will be the most populous country in the world in 2022. India today has about 50% of their population at 25 years of age or younger. It's a very young country. People really want smartphones there," he said. Comments on India came on the back of iPhone sales growing 56% year-on-year.

 

Source:economictimes.indiatimes.com

Slowing Indian Sugar Exports To Boost Thai, Brazil Sales In Asia

 An expected slowdown in Indian sugar exports as domestic prices surge, will boost the market share of Thai and Brazilian sugar in Asian markets, traders said on Tuesday.

India will soon scrap an order that requires sugar mills to export excess supply, two government officials said on Monday, after back-to-back droughts look set to turn the country into a net importer next season and open the door to rival suppliers.

Traders said the news came as little surprise as many had expected that India, the world's number 2 sugar producer after Brazil, would swing next season to a net importer from exporter after drought ravaged production.

India, also the world's top sugar consumer, has been a major source of low quality white sugar shipped to Myanmar, much of which was then smuggled into China, traders said.

Over the past several weeks, flows of white sugar to China have slowed after brisk trade into the country in the fourth quarter of last year, they added.

"With India now marginalised, and if Chinese demand does pick up again, the sugar (for China) will come from Thailand and other sources," a senior European physical trader said.

Indian mills are now prioritising sales to the local market to benefit from higher domestic prices as supplies tightened.

Traders said they expected Indian mills to lose market share in Asia to exporters from Thailand, Middle Eastern and Indian tolling refineries, as well as from Brazil.

Tolling means importing raw sugar, refining it into high quality white sugar and re-exporting it.

Traders said Thai sugar was likely to be the first choice of buyers in Asia as freight costs and shipping times were less than from Brazil.

However, current cheap freight costs had made Brazilian crystal, or 150-ICUMSA sugar, competitive with Thai and tolled supplies in Asian markets.

Excluding freight charges, traders quoted Brazilian crystal sugar at a $20-25 discount to benchmark August ICE white sugar futures , compared with $20 over futures for high quality, 45-ICUMSA Thai supplies.

Traders said they expected tight supplies of white sugar, combined with strong demand from markets in Asia, the Middle East and West Africa, to keep the whites-over-raws premium buoyant in coming months.

The nearby whites premium was in excess of $100 per tonne this week, a comfortable margin for refiners.

 

Soource :economictimes.indiatimes.com

Pharma Exports Up 9.7 Per Cent, 33 Per Cent Growth In Us Markets In Fy16

MUMBAI: The country's pharmaceutical exports reported a 9.7 per cent jump and nearly 33 per cent growth in US markets in FY16, Union Commerce Secretary Rita Teaotia said today.

The country's pharma exports stood at Rs 96,000 crore during 2014-15.

"The country's pharmaceutical exports is one of the good stories of Indian exports. We have registered 9.7 per cent jump and 33 per cent growth in exports to US market. We see lot of growth potential of pharma exports in coming years," Teaotia told PTI after inaugurating iPHEX 2016 conference here.

Indian industries have managed to maintain and increase their market share in most of the sectors despite countries all over the world experiencing fall in exports, Teaotia said adding that despite the US FDA issues faced by the several domestic pharma companies last year, the huge exports growth of 33 per cent shows our companies are capable of taking challenges.

The three-day iPhax 2016 an international exhibition for pharma and healthcare opened today was jointly organised by Pharmaceuticals Exports Promotion Council of India (Pharmexcil) and Ministry of Commerce and Indusry.

Generic drugs form the largest segment, with 75 per cent of market share (in terms of revenues), of the Indian pharmaceutical sector. India supply 20 per cent of global generic medicines market exports in terms of volume, making the country the largest provider of generic medicines globally and expected to expand even further in coming years. Over the Counter (OTC) medicines and patented drugs constitute 21 per cent and 9 per cent, respectively, of total market revenues of USD 20 billion, Pharmexcil Chairman Ashutosh Gupta said.

"Objectives of iPHEX converges with the idea of creating business opportunities to all with a novel cause of taking care of health of citizens globally. Visits of regulatory officials would help to provide better insights into drug regulatory framework and understands each other's benchmarks of standards and quality compliances," Teaotia added.

Over the years, Indian pharma has earned a credible reputation and especially in generics in global market place.

India has emerged as credible source for quality and affordable medicines. Over 55 per cent of India's export is to highly regulated markets. In order to take Indianpharma to next level in the International market arena, Ministry of Commerce took initiative to position India as hub for affordable, credible and sustainable source of pharmaceutical products.

Over 600 overseas business visitors, from over 100 countries, including regulators, senior health officials, key representatives from NGOs are participating in iPHEX 2016.

 

Source :economictimes.indiatimes.com

Rajesh Exports Wins Rs 780-Cr Export Order

NEW DELHI: Jewellery exporter and retailer Rajesh ExportsBSE 0.88 % today said it has won an export order worth Rs 780 crore from Singapore.

In a BSE filing, Rajesh Exports said it "has bagged an export order worth Rs 780 crore of designer range of gold and diamond-studded jewellery and medallions from Singapore".
 

 

Source :economictimes.indiatimes.com

India May Become Net Importer Of Sugar As Drought Parches Fields

 India is likely to become a net importer of sugar in 2016-17 as back-to-back drought years dry irrigation channels and ravage cane fields, with output in the country’s biggest producing state seen dropping over 40 per cent.

That would mark the first time the nation has been a net importer of the sweetener in four years, with the switch likely to support global prices that have already been rising this year.

It would also give rival producers such as Pakistan, Thailand and Brazil the chance to boost shipments from their ports.

“India will need to import next year due to a production shortfall,” Ashok Jain, President of the Bombay Sugar Merchants Association (BSMA), told Reuters.

“Drought has severely affected cane plantations in Maharashtra. The government should stop exports now to reduce import requirements in the next season.”

The El Nino weather phenomenon, which brings dry conditions to many regions, has stoked the worst drought in decades in some parts of India, with thousands of small-scale sugar cane growers in Maharashtra State failing to cultivate crops for the next marketing year, starting October.

“Even for drinking water we are relying on water tankers. It wasn't possible for anyone from our village to cultivate cane,” said Baban Swami, a farmer standing in a parched field in the Latur district of Maharashtra, around 500 km southeast of Mumbai. That could help push overall output below consumption for the first time in seven years.

“Next year, Maharashtra’s production could drop below 5 million tonnes. This may pull down the total output to 22.5 million tonnes,” said B. B. Thombre, President of the Western India Sugar Mills Association. Next season’s local consumption is pegged at around 26 million tonnes.

The world’s biggest sugar consumer is set to churn out 25.7 million tonnes in the current season, with Maharashtra contributing 8.5 million tonnes. Indian mills are contracted to export nearly 1.5 million tonnes this season.

“I think there is a possibility we could see imports to India next year,” said Tracey Allen, a commodity analyst at Rabobank in London.

Indian imports have in the past boosted global sugar prices, traders said.

“The global supply deficit is going to rise with the Indian shortfall. This could trigger a rally, although a lot depends on how much sugar India needs to import,” said a Singapore-based dealer with a global trading firm.

He declined to be identified as he was not authorised to speak with media.

Meanwhile, analysts were divided over whether India would cut its 40-per cent import duty on raw sugar.

Some said mills would ask for the tax to remain unchanged so domestic prices would rise further, while others said the food ministry could push for a duty-cut to relieve inflationary pressures.

“Duty free imports are required to arrest price rises,” the BSMA President said.

Source :.thehindu.com

 

 

India Bans Import Of Goods From China: List Of Top 5 Imports Of India

The government of India put a ban on the import of various goods from China including some electronic items, specific mobile phones, milk and milk products and some steel products on April 25, 2016.

According to some online media reports, the ban came after Union Commerce Minister Nirmala Sitharaman said that the import of such items from China has been harming India's small and medium enterprises. Quality concerns have also been cited as one of the reasons for the ban.  

Union Commerce Minister reportedly said that specific actions have been taken by the government on these Chinese imports to implement the ban precisely.

India imports around 6000 commodities from 140 countries. In 2015, India imported USD 390.7 billion worth of commodities.

Following is a list of top five imports of India from the world:

1.Crude oil: The import of petroleum crude to the country accounts for about 34 percent of the total inward shipments.

2.Gems and precious metals: The country also imports gold and silver which accounts for 12 percent of the total imports.

3.Machinery: This makes around 10 percent of the total imported goods in the country.

4.Electronic equipment: The import of electronic goods including smart phones in the country grew from USD 2.85 billion in May to USD 4.38 billion in September 2015. This accounts to around 7 percent of the total imports.

5.Pearls, precious and semi-precious stones: India imports natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and its products, which accounts for five percent of the country's total imports.

 

Source :indiatoday.intoday.in

India's Gems And Jewellery Exports Decline On A Global Economic Slowdown

India's gems and jewellery (G&J) exports declined in the financial year 2015-16 due to a slowdown in global economy despite a small pick up witnessed from the United States, the world's largest consumer of luxury goods.

Data compiled by the apex body the Gems & Jewellery Export Promotion Council (GJEPC) showed India's net G&J exports at $31.98 billion (Rs 2,09,593.83 crore) in FY 2015-16 as compared to $36.22 billion in the previous year, witnessing a decline of 5.3%.

The fall in G&J shipment was largely driven by a sharp fall in exports of cut and polished diamonds, which recorded 7.47% slump in dollar term at $19.99 billion in FY16, as against $23.16 billion in FY15.

In rupee terms, however, cut and polished diamond exports slumped by a steep 13.66% to Rs 1,30,938.07 crore in FY 16 as against Rs 1,41,514.28 crore in the previous year.

The decline in cut and polished diamond was partly compensated by a surge in silver jewellery exports, which grew by a staggering 44.17% in FY16.

 

 

source :business-standard.com

Removal Of Subsidies On Cotton To Benefit Indian Exports: Government

NEW DELHI: The decision taken at the World Trade Organisation's 2015 Nairobi Ministerial to eliminate export subsidies on cotton will benefit Indian shipments of the crop, the government said on Wednesday.

it will create a level playing field for our farmers, who were not entitled for it but other developed countries were providing the same as scheduled, as per the rules," the commerce department said.

The Nairobi Ministerial decision on cotton and export competition resulted in a commitment by developed countries to immediately eliminate their export subsidies, while developing countries were required to do so by January 1, 2017.

However, India is not a major user of export subsidies and as per notifications to the WTO, the country has not provided any financial support for cotton between FY07 and FY10.

 

Source :economictimes.indiatimes.com

The Fight Over Tyre Imports Gets Nasty

CHENNAI: Are tyre imports into India going up or coming down? Tyre companies and tyre dealers are locked in a vicious tit-for-tat with both sides claiming they have the right data. Tyre companies say the data shows that truck and bus radial imports are up 60%. Dealers say data shows imports are already down 29% and there is no need for anti-dumping duty on imports. Now the Automotive Tyre Manufacturers Association (ATMA) and All India Tyre Dealers' Federation (AITDF) are down to calling each other names.

It all started when AITDF released data suggesting that that import of passenger car radial tyre has seen a 53% drop in March 2016 compared to December 2015 and a 57% drop compared to the previous high in June 2015. This, said the AITDF report, comes on the heels of a 29.25% drop in the import of truck/bus radial tyres. On a quarter-on-quarter basis, the passenger car radial imports in the quarter ending March 2016 over the quarter ending December 2015 have come down by 32.38%.

Now ATMA has hit back saying the data is wrong and misleading. Rajiv Budhraja, director general, ATMA, said, "AITDF though claiming to be a representative of tyre dealers has been, in fact, acting at the behest of tyre importers as has been always campaigning in favour of tyre imports and against domestic manufacturing. As much as 95% of truck & bus radial (TBR) tyres are imported in India by independent tyre importers who are the direct beneficiary of dumped tyres from China. They have mixed up TBR and passenger car radial (PCR) import to make a point and create confusion."



According to ATMA, for the second year running TBR imports are up by more than 60%. "AITDF's statement that TBR import has gone down is factually incorrect and a vicious attempt to deflect the government's attention from a serious issue," said Budhraja.


Singh meanwhile maintains that the data discrepancy is due to the fact that AITDF is calculating month-on-month while ATMA is calculating year-on-year. Also the radial import is restricted to a single category (10.00-20") whereas the other categories for light commercial vehicles and ICVs (like 8.25-16", 7.25-20", 9.00-20" and 11.00-20") is entirely serviced by domestic manufacturers. "There are months when tyre imports will go up like it will be higher in April than in March 2016," said Singh. "But that's because of several factors - summer is peak season for tyre demand and the truck market is growing in double digits so there is a demand supply shortfall which is being met with imports. We are only voicing the interests of consumers that tyre companies should either lower prices to global levels or allow imports to compete in a level playing field. You can't have your cake and eat it too," he added.

The AITDF report announced last week claimed that import of both PCR and TBR are down sharply. "AITDF has duly tabulated the import data of PCR import from China PR for replacement market for the period of January 2015 to March 2016 and it is very much evident that there has been no surge in import of truck and bus radial tyres into India as is being shouted by domestic tyre industry," SP Singh, convenor, AITDF had quoted in the report. "The trend has been up and down and there is no sign of any dumping and related injury to domestic industry."


ATMA, for its part, says that TBR imports have actually jumped 60 and 64% in FY 2014-15 and FY2015-16 respectively. Quoting customs data, ATMA stated that TBR imports went up from 7.8 lakh units in FY15 to 12.8 lakh units in FY16. In the last two years, TBR import has gone up by 2.5 times. From an average per month import of about 40,000 units in FY14 and 65,000 units in FY15, the TBR import figure has crossed one lakh units per month in FY16, states ATMA.China's share in TBR import in India has more than doubled to 90% in 2015-16 from 40% in 2013-14. Chinese TBR import has come to account for 30%-40% of replacement demand for TBR in India.

 

Source :timesofindia.indiatimes.com

Rupee Trades Higher At 66.44 Against Us Dollar

Mumbai: The Indian rupee on Wednesday strengthened against the US dollar ahead of the US Federal Reserve’s policy outcome. This is the second session when the rupee is trading higher.

At 2.04pm, the home currency was trading at 66.44, up 0.12% from its previous close of 66.52. The rupee opened at 66.55 a dollar and touched a high and a low of 66.44 and 66.60, respectively.

India’s benchmark Sensex index fell 0.18% or 47.60 points to 26,053.53 points. So far this year, Sensex is down 0.16%.

Most Asian currencies were trading higher. Malaysian ringgit was up 0.4%, South Korean won 0.24%, Japanese yen 0.18%, Singapore dollar 0.18% and Philippines peso 0.13%. However, China offshore spot was down 0.05%

The Federal Reserve and the Bank of Japan (BoJ) will meet and announce their monetary policy decisions. Analysts expect that the BoJ meeting on Thursday will be reactionary and dependent on the stance laid out at the Fed on Wednesday.

Other data this week include first-quarter growth figures for the UK, the US and the Eurozone, issued on Wednesday, Thursday and Friday, respectively, Reuters reported.

India’s 10-year bond yield was trading at 7.46%, as compared with its Tuesday’s close of 7.472%.

So far this year, the rupee gained 0.43%, while foreign institutional investors bought $1.61 billion from the local equity market and sold $312 million in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.356, down 0.23% from its previous close of 94.573.

 

Source :livemint.com

India Faces Flak At Wto For Duty On Steel Imports

 

India’s recent decision to impose minimum import price on certain steel items has been opposed by Japan, the EU, Korea, Australia, and Canada at the World Trade Organisation, all of whom have alleged it goes against multi-lateral trade rules.

The countries also criticised safeguard duties imposed by India on steel recently.

While India is yet to formally respond to the complaints, a Commerce Ministry official told BusinessLine that a minimum import price (MIP) was a short-term measure and was generally removed as soon as the deluge in imports subsided.

“There is over capacity in the steel industry worldwide. Many countries are adopting protectionist measures to stop import of the metal. Given the sharp increase in steel import in India, the Centre deemed it appropriate to impose an MIP as a temporary measure (maximum for six months) to check cheap inflows,” the official said.

In its representation at the Goods Council meeting of the WTO, Japan said the MIPs were having a significant adverse impact on exports from the country and were clearly inconsistent with GATT rules. Canada, Australia, the EU and Chinese Taipei also backed Japan’s demand that India should withdraw the MIP.

New Delhi imposed an MIP, ranging from $341 to $752 per tonne, on 173 steel products in February.

It was in response to a surge in steel imports in 2015-16, which increased 25.6 per cent to 11.71 million tonnes (mt), compared to 9.32 mt in 2014-15 in the previous year.
Safeguard duty opposed

At the recent Goods Council meeting of the WTO, Japan and the EU also raised concerns on the safeguard duties (penal import duties to protect domestic industry against import surges) imposed on imports of hot-rolled flat steel products last year by India.

The representative from the EU pointed out that safeguards are one of the most trade-restrictive tools because they apply to imports from all countries, and that India should have instead initiated an anti-dumping or countervailing investigation on the targeted goods. India, however, believes that it is well within its rights to apply the duties.

“The WTO allows members to impose safeguard duties and we strictly followed prescribed rules to determine safeguard duties on steel products,” the official said.
User industry worried

While the domestic steel industry is happy with the protection accorded to it by the Centre against cheap imports, the user industry, which includes engineering products manufacturers, is worried.

High price of domestic steel is one of the reasons pulling engineering exports from India down, according to the Engineering Export Promotion Council (EEPC). Engineering exports contracted 11 per cent in March.

“Policies like severe import restrictions on steel, a crucial raw material for the engineering products, are aggravating the problems for the engineering exporters,” according to TS Bhasin, Chairman of EEPC.

 

Source :.thehindubusinessline.com

Isuzu Motors To Export Vehicles From Indian Plant

Chennai, April 27 (IANS) Japanese automobile maker Isuzu Motors will export vehicles from its Indian plant in Sri City in Andhra Pradesh besides automotive components, senior officials said on Wednesday.

The company's 50,000 units per annum plant was inaugurated by Andhra Pradesh Chief Minister N. Chandrababu Naidu when he drove the first India made D-Max pickup model out of the assembly line.

"India is a strategic market for Isuzu Motors. We will be exporting out of India in the future as this plant will be a key manufacturing hub for our global operations," said Masanori Katayama, president, Isuzu Motors.

"Isuzu Motors has earmarked Rs.3,000 crore investment for the Indian project. Initially the local content will be around 70 percent and the percentage will be increased gradually," Hiroyasu Miura, chairman, Isuzu Motors India, told the gathering.

He said the company was in India for the past four years studying the market.

Speaking at the inaugural, Naidu said the government had agreed to the request of Isuzu Motors to extend the mega investment incentives to the component units to be set up in Sri City while exempting road tax to the company vehicles.

Eight component suppliers of Isuzu Motors will set up their operations at Sri City, he added.

He said Sri City has attracted 120 companies of which 80 are operational now.

According to Miura, the plant's production capacity can be increased to 120,000 units.

The bookings for the Isuzu branded vehicles will soon start followed by deliveries across India. According to the company, D-Max V-Cross is India's first adventure utility vehicle.

 

Source :timesofindia.indiatimes.com
 

India Likely To Become Net Importer Of Sugar As Drought Dries Fields

 India is likely to become a net importer of sugar in 2016/17 as back-to-back drought years dry irrigation channels and ravage cane fields, with output in the country's biggest producing state seen dropping over 40 per cent.

That would mark the first time the nation has been a net importer of the sweetener in four years, with the switch likely to support global prices that have already been rising this year.

It would also give rival producers such as Pakistan, Thailand and Brazil the chance to boost shipments from their ports.

"India will need to import next year due to a production shortfall," Ashok Jain, president of the Bombay Sugar Merchants Association (BSMA), told Reuters.

"Drought has severely affected cane plantations in Maharashtra. The government should stop exports now to reduce import requirements in the next season."

The El Nino weather phenomenon, which brings dry conditions to many regions, has stoked the worst drought in decades in some parts of India, with thousands of small-scale sugar cane growers in Maharashtra state failing to cultivate crops for the next marketing year, starting October.

"Even for drinking water we are relying on water tankers. It wasn't possible for anyone from our village to cultivate cane," said Baban Swami, a farmer standing in a parched field in the Latur district of Maharashtra, around 500 km southeast of Mumbai.

That could help push overall output below consumption for the first time in seven years.

"Next year, Maharashtra's production could drop below 5 million tonnes. This may pull down the total output to 22.5 million tonnes," said B.B. Thombre, president of the Western India Sugar Mills Association. Next season's local consumption is pegged at around 26 million tonnes.

The world's biggest sugar consumer is set to churn out 25.7 million tonnes in the current season, with Maharashtra contributing 8.5 million tonnes. Indian mills are contracted to export nearly 1.5 million tonnes this season.

"I think there is a possibility we could see imports to India next year," said Tracey Allen, a commodity analyst at Rabobank in London.

Indian imports have in the past boosted global sugar prices, traders said.

"The global supply deficit is going to rise with the Indian shortfall. This could trigger a rally, although a lot depends on how much sugar India needs to import," said a Singapore-based dealer with a global trading firm. He declined to be identified as he was not authorised to speak with media.

Meanwhile, analysts were divided over whether India would cut its 40-per cent import duty on raw sugar.

Some said mills would ask for the tax to remain unchanged so domestic prices would rise further, while others said the food ministry could push for a duty-cut to relieve inflationary pressures.

"Duty free imports are required to arrest price rises,"

 

Source :economictimes.indiatimes.com

Minister Of State (Independent Charge) In The Ministry Of Commerce & Industry (Cim), Nirmala Sitharaman Has Said That Government Has Taken Steps To Promote Exports Of Indian Goods.

Minister of State (Independent Charge) in the Ministry of Commerce & Industry (CIM), Nirmala Sitharaman has said that government has taken steps to promote exports of Indian goods.

In a written reply in Lok Sabha on Monday, Sitharaman said, "The government takes steps to improve the competitiveness of Indian goods through steps like improvement in infrastructure and ease of doing business."

"International Trade is governed on the basis of various factors including demand and supply, global economic situation and competitive pricing," she said.

In her reply, she said, following are some of the measures Government has taken recently to promote exports.

The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20 on April 1, 2015.MEIS aims to incentivize export of merchandise which are produced/manufactured in India.

At the time of introduction of MEIS on April 1, 2015, the scheme covered 4914 tariff lines at 8 digit level. Countries of the globe were grouped into 3 market categories (Country Group A, Country Group B & Country Group C) for grant of incentives under MEIS. Slight changes in lines covered etc. were made on 14.07.2015 and 15.7.2015. Thereafter on 29.10.2015, 110 new Tariff Lines at 8 digit level were added under the scheme.

The rates/country coverage for 2228 lines at 8 digit level were enhanced. As on date, 5012 Tariff Lines at 8 digit level are eligible for rewards under MEIS. The annual resource allocation under MEIS was enhanced from Rs. 18000 crore to Rs. 21000 crore in October 2015.

The Government has introduced the Interest Equalisation Scheme on Pre & Post Shipment Rupee Export Credit with effect from 1.4.2015. The scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digit] and exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC (HS) codes. The rate of interest equalisation is 3 percent per annum.

In addition the Government continues to provide the facility of access to duty free raw materials and capital goods for exports through schemes like Advance Authorisation, Duty Free Import Authorisation (DFIA), Export Promotion Capital Goods (EPCG) and drawback/refund of duties.

While India's exports during April 2015 – February 2016 over the April 2014 – February 2015 declined by 16.7 percent, the decline for the products covered under MEIS for the same period was only 8.95 percent, added Sitharaman in her reply.

In an other reply she said, "The Government is implementing a number of measures and incentives for promoting the exports of agricultural products."

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the administrative control of the Department of Commerce extends financial assistance to the eligible exporters under "Agriculture export promotion Plan Scheme" which comprises of various components namely; Market Development; Infrastructure Development; Quality Development; and Transport Assistance. Also, exports of grapes are eligible for an incentive of 5 percent under the Merchandise Exports from India Scheme (MEIS).

In addition to this Grape Net is an internet based electronic service offered by APEDA to the Stakeholders for facilitating testing and certification of Grapes for export from India to the European Union in compliance with the standards identified by NRC Pune, on the basis of consultation with exporters.

The cultivation of grapes is supported through Centrally Sponsored Scheme i.e. Mission for Integrated Development of Horticulture (MIDH) in all the States by providing assistance in the form of planting material, drip irrigation, trellies and integrated nutrient and pest management, she added.

 

Source :smetimes
 

22-Year-Old Girl Exports Paper From Banana Fibre

 Raipur: Lured by the rich forest cover and produce in Chhattisgarh, a 22-year-old girl ventured into export of forest-based products and has tried to organised famers in a bid to benefit them with additional income. Shubhika Jain is making handmade papers from banana stem fibre and aromatic oils from local herbs. She buys banana stem which normally goes as waste after banana harvesting.


Talking to TOI, Shubhika said, "Though Chhattisgarh is rich in green belt, still for my products like essential oils, which are extremely concentrated requires abundant quantity of specific herbs to meet the high production. So, besides growing aromatic herbs in thirty acres of on our land, I also procure herbs from 6,000 farmers based in Bastar region. These farmers get a substantial share of profit from selling oil and guaranteed buy back amount of per kg of the bio-mass." Its been one and half year since Shubhika has started her export business and it is in its initial phases. I had exported handmade paper to Dubai, Pakistan, Singapore, while sent samples for further order to buyers based in London and Russia. So far, essential oils are sold in markets of Germany and USA, Shubhika said.


Shubhikas family business is in research and development of bio-technology and has a buy back policy in tissue culture raised banana plants and they procure banana fibre for handmade paper. Hence by selling back the fibre, the farmers earn up to Rs 16,000 from each acres. She believes in team work and the success and scope of her work depends on success of farmers so to motivate farmers, buying back policy for fibre adds additional income in farmers books. While four machines, which crush the fibre to obtain the smooth part for making handmade papers are installed in villages of Kawardha and Bemetara districts and here farmers are informed to get benefit of making extra income by selling the banana fibre to them.


Despite the low demand of handmade paper in domestic markets of Chhattisgarh, the product is being sold in markets of Madhya Pradesh, Odisha, Uttar Pradesh, Bihar, Jharkhand and Maharashtra. To scale up demand locally Shubhika said, "Handmade papers are eco-friendly and this is one of the major reason I liked working for this product and to make it popular in residents taste I had developed the innovative variations of handmade papers made of cotton rags, silk, jute and leather. Hope people will adapt it use by trying it for once, Shubhika crosses her fingers and smiles."
 

 

Source :timesofindia.indiatimes.com

India's Oil Import From Middle East Rises To 59%

NEW DELHI: Reversing a two-year declining trend, India's reliance on the volatile Middle East region for meeting its crude oil needs has risen in 2015-16, with quantum jump in buying from Iraq.

India imported 109.09 million tonnes of crude from the 10 nations in the Middle East during first 11 months of 2015-16 fiscal, Oil Minister Dharmendra Pradhan told Lok Sabha here.

The region supplied 59.22 per cent of the total 184.21 million tonnes of crude oil imported by India during April, 2015 and February, 2016.

In the entire 2014-15 fiscal, India had imported 109.88 million tonnes or 58 per cent of its entire oil need of 189.44 million tonnes, from the Middle East.

The reliance on the Middle East in that year had declined from 61 per cent in the previous 2013-14 fiscal when the region supplied a total of 115.86 million tonnes of oil. In 2012-13, the Middle East accounted for 62.44 per cent of oil supplies.

In a written reply to a question, Pradhan said Saudi Arabia continues to remain India's number one crude oil supplier, selling 37.10 million tonnes of oil in April-February period of the last fiscal. Saudi supplies were up from 35 million tonnes in 2014-15.

Imports from Iraq however saw the biggest jump - rising from about 24.5 million tonnes level of the past three years to 32.97 million tonnes - in April-February of 2015-16.

Iran sold 10.58 million tonnes of oil in the first 11 months of 2015-16, as against 10.95 million tonnes in the full 2014-15 fiscal. Import from Iran in 2013-14 was 11 million tonnes and in 2012-13 it was 13.14 million tonnes.

Pradhan said supplies from Kuwait has however dipped to 10.13 million tonnes from 17.85 million tonnes in 2014-15. Imports from the UAE also dipped to 14.03 million tonnes from 16.11 million tonnes.

Africa overtook South America to become the second biggest source of crude oil supplies during April-February. It supplied 35.69 million tonnes of oil, ahead of 28.10 million tonnes coming from Latin America.

In 2014-15, South America had supplied 34.46 million tonnes with Venezuela selling 24.4 million tonnes. In April-February 2015-16, Venezuelan supplies fell to 21.29 million tonnes.

Africa had in 2014-15 supplied 33.05 million tonnes of oil to India, bulk of it coming from Nigeria (17.82 million tonnes). In first 11 months of 2015-16, Nigeria sold 21.71 million tonnes of crude oil to India.

Besides crude oil, India also imported almost all of its 8.16 million tonnes LPG from the Middle East region. Qatar was the largest supplier with 3.163 million tonnes in April-February 2015-16, followed by Saudi Arabia (2.24 million tons), the UAE (1.49 million tonnes) and Kuwait (848,000 tonnes), he said.

 

Source :economictimes.indiatimes.com

Weather May Hit This Year’S Tea Production

KOLKATA: Erratic weather conditions in the major tea producing regions of Darjeeling, Dooars and Assam is likely to pull down tea production this year by 5-10%, industry executives said.

Darjeeling and parts of Dooars are witnessing a dry spell. On the other hand, tea gardens in Assam are facing incessant rains, which may bring down tea production in April by at least 10% from a year ago. "Darjeeling gardens are the worst hit. There is no rain in the area that produces the finest of Indian teas," said AN Singh, managing director, Goodricke GroupBSE 0.63 %.

"Ideally, by this time the gardens should have received 10 inches of rainfall. The gardens had received some 2 inches of sporadic rainfall in March which was not enough."

This continuous dry spell has already affected the famous first flush Darjeeling teas that are sold mostly overseas. "It is going to affect the second flush as well," Singh said. The 87 tea estates in Darjeeling produce 8.5-9 million kg annually. A part of Dooars has also not received rain which too will take a toll on the crop size, industry executives said.

"While the dry spell is affecting tea production in Darjeeling and Dooars, excessive rains in Assam has become a matter of concern to planters," said Aditya Khaitan, managing director of McLeod Russel IndiaBSE 1.45 %. "A clearer picture on the extent of crop damage will emerge by the month end. But definitely there will be some crop loss in the second half of April." Singh puts the crop loss at 5-10%.

"We are also worried over pest attack due to this erratic weather condition," he said. India had produced 75.61 million kg of tea in April 2015. Meanwhile, prices of new-season teas have dropped at the auctions in comparison with last year. CTC prices are down by 7.64% while dust tea is fetching 3.5% less. Khaitan said that since production was high, buyers were on a wait-and-watch mode, which has affected prices. "But in April, production will be lower. Prices will remain firm," he said.

 

Source :economictimes.indiatimes.com

Steel Imports Rise By 26% To 12 Mt In Fy'16

NEW DELHI: Steel imports increased by 25.6 per cent to 11.71 million tonnes in the last fiscal compared to 9.32 million tonnes (MT) in 2014-15.

Minister of State for Steel Vishnu Deo Sai in a written reply to Lok Sabha said that in 2015-16 the finished steel import was at 11.71 million tonnes (provisional).

The domestic production of finished steel in the last financial year declined to 90.39 million tonnes (provisional), over 92.16 million tonnes in 2014-15, Sai said.

The minister further said that after the issue of quality control order, import of seconds and defective products by some unscrupulous importers were reported in respect of some categories of steel products.

"However, the government does not maintain data on import, sale and storage of such sub-standard steel products standards-wise," he said.

In a separate reply to the house, the minister said that the government has long-term vision of increasing domestic steel production capacity to 300 million tonnes per annum by 2025.

"There are two steel projects of central public sector enterprises (CPSEs) under the Ministry of Steel with time overruns, namely, expansion of Bhilai Steel Plant and setting up of integrated steel plant at Nagarnar, Chhattisgarh, which are implemented by SAIL and NMDC respectively," the minister said.

 

Source :economictimes.indiatimes.com