Rupee Closes Weaker Against Us Dollar At 67.17

Mumbai: The Indian rupee on Monday weakened against the US dollar, tracking losses in the Asian currencies markets. Traders are also cautious ahead of an event-heavy week.

The home currency closed at 67.17, down 0.2% from its previous close of 67.04. The rupee opened at 67.23 per US dollar and touched a low of 67.37.

Most Asian currencies closed lower. South Korean won was down 1.05%, Malaysian ringgit 0.94%, Japanese yen 0.71%, Indonesian rupiah 0.39%, Taiwan dollar 0.34%, China renminbi 0.24%, China offshore 0.22%, Philippines peso 0.15%, Thai baht fell 0.1%, Singapore dollar 0.1%.

The government will issue the gross domestic product (GDP) and fiscal deficit data on 31 May after 5.30pm. Gross value added (GVA) would have grown by 7.2% in the March quarter compared with 7.1% in the December quarter, while GDP growth will be at 7.5% from 7.3% a quarter ago, a Bloomberg poll showed.

India’s benchmark Sensex index rose 0.27%, or 72 points, to 26,725. In the last five days, the Sensex has gained 5.61% or 1,420 points. So far this year, the Sensex has gained 2.33%.

On Wednesday, India, the US and China will announce manufacturing Purchasing Mangers Index, while on Thursday, the US will announce jobs data and crude oil inventories along with factory orders data.

Traders will be also cautious on a possible June rate hike in the US. The US Federal Open Market Committee’s (FOMC) meet scheduled for 14-15 June will decide whether or not to increase key lending rates.

So far this year, the rupee has weakened 1.55%, while foreign institutional investors (FIIs) have bought $2.03 billion from the local equity market and sold $1.16 billion in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.678, up 0.16% from its previous close of 95.521.

Meanwhile, India’s 10-year bond yield closed at 7.461%, as compared with its Friday’s close of 7.471%.

 

Source:livemint.com

Cil Coal Price Tweak To Impact Power Tariff: Sources

KOLKATA: The largest miner Coal India's price rise will increase power tariff as impact on regulated sector coal is 8 per cent.

While the overall price hike would be about 6.2 per cent, the effect on regulated (power) sector would be about 8 per cent, sources told PTI.

Coal India  has revised low grade coal price up to 19 per cent. Revision of coal price will fetch it additional revenue of about Rs 3,900 crore.

But, the soft global coal forced Coal India to stay competitive with imported coal and has reduced price between two and 29 per cent.

Sources said, "existing price of G1 to G-5 has been reduced from 2 per cent to 29 per cent to make it competitive with international coal".

 

Source:economictimes.indiatimes.com

Dri Unearths Scam In Import Of Chatons, Beads

Ahmedabad: The investigations by Directorate of Revenue Intelligence (DRI) into the last week's seizure of chaton and glass beads has revealed that crores of customs duty is being evaded by importers in various parts of country by undermining the value of imported goods and at the same time, huge amount of money is being sent through hawala to China.

Last week, the Jamnagar unit of Directorate of Revenue Intelligence (DRI) had seized 19 tonnes of chaton and glass beads worth Rs 1.9 crore from two premises in Rajkot belonging to Dhirubhai.

   The duty evasion was about Rs 60 lakh as chaton and glass beads attract around 28% duty.

Upon questioning, Dhirubhai told DRI that he had purchased these glass chatons from China and given a contract to an agent in Mumbai to smuggle them through Nhava Sheva port in Mumbai. The chatons were imported by concealing in normal goods containers for onward delivery to him in Rajkot when it was detected.


Further investigation revealed that in the last one year, Dhirubhai had illegally imported over Rs 20 crore worth of chaton and glass beads thereby evading duty of more than Rs 6 crore.


Explaining the modus operandi, a DRI official said, "In case of the Rajkot seizure, in the bill of entries chatons were mentioned as Rs 160 per kg whereas the actual cost was Rs 600 per kg. The difference amount was paid by Dhirubhai to men of Chinese suppliers in cash. This cash was then sent to China through hawala."

 

Source:timesofindia.indiatimes.com

India Among Top 10 Steel Importers In 2015: Wsa

NEW DELHI: India, the world's third largest steel producer, was among the top 10 importers of the alloy last year, according to the latest data by the global industry body World Steel Association (WSA).

India imported 13.3 million tonnes (MT) of the metal in 2015 and was just a notch up from China, which imported 13.2 MT of steel during the same period.

According to the WSA data, European Union as a bloc imported 37.7 MT of steel last year, which was followed by the US (36.5 MT), Germany (24.8 MT), South Korea (21.7 MT), Italy (19.9 MT), Turkey (18.6 MT), Vietnam (16.3 MT), Thailand (14.6 MT), France (13.7 MT) and India (13.3 MT).

According to Indian government data, steel imports rose by 25.6 per cent to 11.71 MT during the 2015-16 financial year against 9.32 MT in the year-ago period. India was a net importer of the metal in the last fiscal.

WSA data also showed that India exported 7.6 MT of steel in 2015, which was just a fraction of what its neighbour China exported during the same period at 111.6 MT.

Admitting that Indian steel sector is going through stress for some time due to rising imports, steel minister Narendra Singh Tomar had earlier this month assured the Rajya Sabha that government will take all steps to promote and safeguard the industry.

"It has come to the notice of the government that imports from China, Japan and Korea have increased, which is creating trouble for domestic industry and also causing losses to it."

"Government has made efforts to check this by steps like imposing anti-dumping duty, safeguard duty on imported steel products and policy announcement on minimum import price (MIP). After these steps, the pressure on the steel industry is gradually coming down," he had told the Upper House.

 

Source: timesofindia.indiatimes.com

India To Finalize Rice Export Deal With Indonesia Soon: Trade Secretary

NEW DELHI: India, the world's biggest rice exporter, will soon finalize a non-basmati rice exports contract with Indonesia in a rare government-to-government deal,

Trade Secretary Rita Teaotia said on Monday, as rice prices started firming up following drought in key producing countries.

India could ask the state-run Food Corporation of India to sell around 1 million tonnes rice from its stockpile to Indonesia, the world's leading rice importer , industry officials said.

Rice prices in Asia are hovering around their highest levels in two years.

 

Source:economictimes.indiatimes.com

Rupee Trades Higher At 67.24 Against Us Dollar

Mumbai: The Indian rupee on Thursday strengthened for the second consecutive session against the US dollar, after the local equity market gained for the third session.

At 2.05pm, the home currency was trading at 67.24, up 0.15% from its previous close of 67.34. The rupee opened at 67.33 per US dollar and touched a high of 67.22, a level last seen on 19 May.

India’s benchmark Sensex index rose 1.29% or 327.23 points to 26,208.40. Since the last three days, Sensex has gained 3.9% or 980 points. So far this year, Sensex has gained 0.2%.

The gains in Asian peers also boosted the sentiment for the rupee.

Most Asian currencies gained today. Indonesian rupiah was up 0.31%, Malaysian ringgit 0.2%, Philippines peso 0.2%, Thai baht 0.19%, Japanese yen 0.15% and Taiwan dollar 0.05%. However, South Korean won was down 0.07% and China renminbi 0.05%.

So far this year, the rupee has weakened 1.6%, while foreign institutional investors (FIIs) have bought $1.84 billion from the local equity market and sold $1.14 billion in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.271, down 0.09% from its previous close of 95.354.

Meanwhile, India’s 10-year bond yield was trading at 7.467%, as compared with its Wednesday’s close of 7.464%.

 

Source:.livemint.com

Honda Imports Grom For Testing In India

Two-wheeler maker Honda has imported it's Navi like scooter Grom to India, fuelling fresh round of whispers about the launch of the model in the country. A record of Zauba, which tracks India's import and export data, shows that a unit of the Grom has been imported from Japan.

According to the record, the Grom was imported for the purpose of testing and research and development in India. The Grom is a two-wheeler crossover like the Navi in India, which is powered by a 125cc air-cooled single-cylinder four-speed engine four-speed gearbox.

It runs on 12-inch wheels and features LED taillight, front and rear disc brake, upside down front fork and digital instrument cluster. It will not come as a surprise if Honda decides to bring the Grom to the Indian market as the company's Navi is garnering considerably good response.

So far Honda has sold over 5,000 units of the Navi since its launch in early April. It has been priced at Rs. 39,500 (ex-showroom Delhi). There have also been rumours that Honda is also planning to roll out a powerful version of the Navi with 125cc engine at the heart. The current Navi is powered by a 109cc 4-stroke, SI engine, which can churn out 7.83bhp of power at 7,000rpm and 8.96Nm of peak torque at 5,500Nm.

 

Source:.ibtimes.co.

Slow Domestic Consumption, Exports Will Affect Spinners' Business: Icra

Slow growth in domestic consumption and exports will pose a challenge for profitability of spinners if the demand growth remains muted in FY2017, says ICRABSE 5.95 % in its research update on Indian spinning industry.

High dependence on exports to China and resulting sensitivity of India's exports to China's policy on reserve cotton stock has always warranted a cautious outlook on India's yarn exports, says the report.

According to Mr. Anil Gupta, AVP, Corporate Sector Ratings, ICRA Ltd, "The slow pace of growth in spun yarn production has been driven by factors like tepid domestic consumption and limited growth in exports. With cautious outlook on cotton yarn exports, domestic demand growth will determine the production growth going forward".

As per ICRA estimates, the domestic consumption growth for FY2016 is expected to be ~1.4% (~7.6% in FY2015) for cotton yarn and 3.1% (~6.3% in FY 2015) for spun yarn. This is the lowest level of domestic consumption growth since FY2013. The growth in cotton yarn exports has also been slow with exports of ~1,302 million Kg in FY2016E, which reflects ~3.7% growth (47.5% and 18.3% growth witnessed in FY2013 and FY2014).

In terms of cotton yarn production growth, Industry has witnessed slowest pace of production growth in FY16, which is estimated to have grown by ~2.0% to ~4,136 million Kg and is lowest in last four years. Cotton yarn production had grown by 14.6%, 9.6% and 3.2% in FY2013, FY2014 and FY2015 respectively.

Since cotton yarn accounts for 3/4th of India's yarn production, , India's total spun yarn production has also emulated this trend with a ~3.2% growth in FY2016 vis-a-vis 11.3%, 9.1% and 3.4% growth in FY2013, FY2014 and FY2015 respectively, which is also the lowest in last four year. In ICRA's View, the marginally higher growth in total spun yarn production compared to cotton yarn production in FY2016 reflects an increased share of manmade/blended spun yarn aided by enhanced competitiveness of polyester fibre, given the sharper decline in polyester prices compared to cotton prices.

Slow growth in domestic consumption and export is leading to lower growth in production and will if demand growth remains muted in FY2017, maintaining the capacity utilization and profitability can be a challenge for the domestic spinning ind.

 

Source:economictimes.indiatimes.com

Cil Eyes Export Market In Bangladesh

KOLKATA: Coal IndiaBSE 0.00 % intends to export coal and is in talks with power companies in Bangladesh for striking supply deals. This is the first time Coal India will be exporting the fossil fuel on a commercial basis.

Coal India subsidiaries, Bharat Coking Coal and North Eastern Coalfields, plan to supply coal to Bangladesh power companies. It is likely to be transported to Haldia port in West Bengal from where it could be forwarded through sea route to ports in Bangladesh.

"CIL's coal is likely to be cheaper than the ones supplied from Indonesia because we would save on logistics.The coal produced by these two subsidiaries are of high quality that can compete with Indonesian coal," a Coal India official said.

 

Source:economictimes.indiatimes.com

Government Seen Holding Off For Now On Reducing Raw Sugar Import Tax

MUMBAI/LONDON: Government are expected to hold off before cutting or cancelling a 40 percent raw sugar import duty as a last resort to tackle surging domestic prices as the country shifts from net exporter to importer.

Soaring domestic sugar prices in the world's second-biggest producer, where drought has cut yields in the main growing regions such as Maharashtra, mean that mills will increasingly spurn the export market.

The south Asian nation's production in the current year ending September 30 is likely to drop following two drought years in a row.

The federal government has asked state governments to impose stock limits on sugar to avoid hoarding by traders.

Traders spoke of market talk that India could move to either reduce or cancel the raw sugar import duty.

However, no imminent action was expected.

"I don't think the government will scrap the import duty any time soon," said Rohit Pawar, chief executive of Baramati Agro, which operates sugar mills in Maharashtra.

"Yes, sugar prices have risen in the past few months but now they are running just above production cost. In the past few years mills have incurred huge losses as they were forced to sell sugar below production cost.

"In such a situation duty-free imports can depress local prices and cane payment arrears will start rising."

A government official, who declined to be identified, said, "Right now there is no proposal (to scrap the import duty) on the table."

A Mumbai-based dealer with a global trading firm said the government had to maintain a delicate balance between the interests of farmers and consumers.

Aggressive steps to dampen prices, such as a cut in the raw sugar import duty, could damage the central government's image among farmers.

" duty-free import is the last weapon the government has to control price rises," the dealer said.

"It will do it in phased manner. From 40 percent, it will first reduce the duty to 20 percent. If prices rally even after the reduction, only then it will allow duty-free imports."

European traders said they also doubted that Indian authorities would move soon to cut or cancel the duty, as stocks in India were sufficiently high to make such a move unnecessary for now.

 

Source:economictimes.indiatimes.com

Rupee Slumps To 67.36

 The rupee plummeted 39 paise to 67.36 in the evening trade due to appreciation of the American currency overseas amid foreign fund outflows.

Forex dealers said sustained demand for the greenback from importers and banks as well as a weak equity market also put pressure on the rupee.

The dollar rose to a three-week high against the euro and a basket of currencies on Wednesday on renewed expectations that the Federal Reserve could raise interest rates soon.

The dollar index was up 0.4 per cent at 94.897, its highest level since April 25.

In early trade, the rupee fell 18 paise against the US dollar to 67.15, its weakest level since March, against the previous close of 66.97.

It further fell to 67.39 before quoting at 67.36 at 4.40 pm local time.

The rupee hovered in a range of 67.39 and 67.13 in the evening trade.

Meanwhile, the benchmark BSE Sensex ended down 304.89 points or 1.19 per cent at 25,399.72..

 

Source :.thehindubusinessline.com

Govt Allows Bulk Export Of Rice Bran Oil

NEW DELHI: The government has allowed bulk export of rice bran oil without any restriction on pack size, a move likely to help paddy growers and rice millers .

"Export of rice bran oil in bulk (irrespective of any pack size) has been exempted from the prohibition on export of edible oils," the Directorate General of Foreign Trade (DGFT) said in a notification today.

At present, the export of edible oils is allowed in branded consumer packs of upto 5 kg with a minimum export price of USD 900 per tonne.

Although India is a major importer of edible oils, the Centre has allowed bulk exports of rice bran oil to help small rice millers realise better price as demand of this cooking oil remains limited in the domestic market .

India's vegetable oil (comprising edible and non-edible oils) imports touched a record 14.61 million tonnes in 2014-15 oil year (November-October).

In the first six months of the 2015-16 oil year, the import of vegetable oils rose by 17 per cent to 75,57,169 tonnes as compared to 64,66,902 tonnes in the corresponding period of the previous year.

The country meets more than 50 per cent of its cooking oil demand through imports.

India imports palm oil mainly from Indonesia and Malaysia and a small quantity of crude soft oils, including soyabean oil from Latin America. Sunflower oil is imported from Ukraine and Russia.

 

Source:economictimes.indiatimes.com

Us Trade Enforcement Law That Indian Exporters Need To Worry About

 Indian businesses may still be in denial mode about the impact, but the US has passed the Trade Facilitation and Trade Enforcement Act on February 24 this year, which Indian exporters to that country need to worry about.

The Act was passed with the intention of protecting the US industry from dumping, but the US customs authority have been given powers to stop such imports under the garb of health and safety, protecting Intellectual Property Rights, currency manipulation, goods produced using forced (salvors) or child labour, money laundering, bribery and various other practices which are putting the US industry at a disadvantageous position as local compliance costs are higher.

The Act is already in force and India is seen as one of the countries which could be under watch. US President Barack Obama had said while signing the Act that the US industry needs to be protected and there are several countries against whom they have filed cases in WTO. He categorically mentioned India against whom they had won a case in WTO on dumping of steel products in the US. He has also asked the US border and customs authorities "to use the Act wisely."

Hala Bou Alwan, Head of Risk Market Development, Thomson Reuters, said: “Now the US customs authorities are under obligation to screen and grade whatever is imported and ensure that the exporter has followed the best practices and not violated any prescribed norms.” India, according to her, should be in a proactive mode and ensure compliance of the Act.”

The issue is not as simple, atleast for Indian exporters as there is a whole chain from which goods are passed at various stages of manufacturing. The ultimate exporter will not be able to ensure whether all the provisions which the US has prescribed in the Act are complied or not. Hala says: “Process on how to approach such issues is to be finalised and we believe there should be a compliance manual and processes’ guidance internally within organisations and externally from regulators. However, concerned exporting companies have to give undertaking for ensuring norms are being followed to the best of their knowledge and they have to secure similar undertakings from their suppliers down the line of the manufacturing process. The companies should not be waiting to do that until regulatory detailed processes are in place. However, they should comply with it anyways, not only for the purpose of this Act, but also to ensure they avoid any reputational damage.”

The undertakings and declarations shall contain pledge not to deal with child labour, etc., and they have in place proper risk management policies to ensure compliances of various other provisions and best practices.

India’s mercantile exports to the US is around $40 billion per annum and gems and jewellery, pharma and textiles are among the top export products. Gems and jewellery and textiles are such that at some stage unorganised sectors come in to the picture in the manufacturing process. Sourcing of gold could be an issue which the final exporter will find is difficult to keep a tab on.

Hala said they are getting requests from Indian companies on this Act and: “We ask them to know their suppliers and ensure they deal with legitimate sources, we ask them even to educate their staff to know how to deal with this and educate further their suppliers in this regard, as in all cases the suppliers have to know very well their own suppliers, it’s a chain which should be always a clear and clean one.”

 

Source:.business-standard.com

Muted Global Demand Hits Indian Auto Parts Makers Like Bharat Forge And Motherson Sumi

Earnings headwinds for export-oriented auto ancillaries like Bharat ForgeBSE -2.25 % and Motherson SumiBSE -1.68 % refuse to abate due to deteriorating vehicle demand from key customers in developed countries.

The impact is evident from the March quarter numbers and management commentaries. Multiple problems faced by leading truck and car makers have led to a wide gap between projected and actual revenues of Indian makers of auto parts. Thus, the risk of earnings downgrade, high for Bharat Forge and Motherson Sumi, could further shrink their price-earnings multiples.

Bharat Forge, India's leading forgings company, has suffered 27 per cent fall in export revenues in the March quarter. The commercial vehicle segment, which accounts for nearly half of the total export revenues, has been severely hit due to inventory destocking by its key customers in the US.

 

 

Source:economictimes.indiatimes.com

Pakistan's Senate Wants Ban On Indian Cotton Imports

 The Pakistani senate committee on National Food Security and Research has asked the government to stop the import of cotton lint from India.

Committee chairman, Syed Muzaffar Hussain Shah, chairing the meeting on Wednesday, said the country's agriculture economy would be ruined if the import of 0.5 million bales of cotton from India through the Wagah border check post was not stopped, Dawn online reported.

It observed that the last season showed a 30 per cent decline in cotton production, and added the figure could rise if immediate measures were not taken.

There is sufficient stock of cotton lint available with the Trading Corporation of Pakistan, so there is no justification to import cotton, observed the committee.

It also sought a report from the Ministry of Commerce on the import of cotton lint from India.

Minister for National Food Security and Research Sikandar Hayat Khan Bosan endorsed the recommendation.

The committee asked the government to immediately announce the intervention price for cotton as harvesting season is fast approaching. Punjab has already asked the federal government to announce the intervention (support) price.

Commerce Minister, Khurram Dastgir Khan, during a meeting with representatives of the Pakistan Cotton Ginners' Association (PCGA) on Wednesday said his ministry would work in collaboration with the provincial governments to increase the production of cotton.

The meeting also discussed the role of Trading Corporation of Pakistan and the effect of import policy of cotton.

Khan said the government's prime concern was to protect the interests of farmers besides boosting textile exports.

 

Source:.Business-standard.com

Rupee Trades Lower At 66.61 Against Us Dollar

Mumbai: The Indian rupee on Thursday was trading marginally weaker against the US dollar, ahead of the key inflation and index of industrial production (IIP) data due after 5.30pm.

At 2.03pm, the home currency was trading at 66.61, down 0.08% from its previous close of 66.57. The rupee opened at 66.62 a dollar and touched a high and a low of 66.54 and 66.68, respectively.

According to Bloomberg estimates, consumer price index (CPI) will be at 5.05% for April against 4.83% in March. The IIP will be at 2.5% in March as compared to 2% in February.

The government will issue wholesale price inflation (WPI) data on 16 May after 12pm. According to Bloomberg analysts, WPI will be at -0.2% for April against -0.85% in March.

India’s benchmark Sensex index rose 0.48% or 121.60 points to 25,718.62. So far this year, Sensex is down 1.5%.

India’s 10-year bond yield was trading at 7.425%, as compared with its Wednesday’s close of 7.427%.

So far this year, the rupee has weakened 0.68%, while foreign institutional investors have bought $1.81 billion from the local equity market and sold $102.90 million in debt markets.

Asian currencies were trading lower. Japanese yen was down 0.47%, Philippines peso 0.23%, China renminbi 0.21% and Singapore dollar 0.21%. However, South Korean won was up 0.43%, Malaysian ringgit 0.4% and Indonesian rupiah rose 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.975, up 0.16% from its previous close of 93.823.

 

Source:.livemint.com

Edible Oil Import Bill To Rise 15-20%

India's edible oil import bill is likely to rise by 15-20 per cent this oil year (November '15-October '16), on a sharp increase in the price of crude palm oil (CPO) in global markets and a widening supply deficit here.

A fall in production from local sources, and a spurt in demand on subdued prices over the past year, has widened the deficit in India. the country imported 14.5 million tonnes of vegetable oil (edible and non-edible) worth Rs 60,000 crore in oil year 2014-15. This is likely to rise to 16 mt worth Rs 75,000 crore by the end of the current oil year in October.

The CPO price in November was around 2,100 ringgit a tonne in Malaysia, after declining to a several-years low of 1,800 ringgit a month before. It recovered from this to trade currently at 2,685 ringgit a tonne. From the lowest level, the price is up 49 percent"Considering the average price rise of 10 per cent and a similargrowth in volume of import, India's edible oil import bill will jump by up to 20 per cent this year," said B V Mehta, executive director, Solvent Extractors' Association (SEA), apex body of the edible oil industry.

Its data shows vegetable oil import at 6.27 mt worth Rs 27,990 crore between November 2015 and March 2016. For the full oil year, as mentioned earlier,import is estimated to be 16 mt, worth Rs 75,000 crore. Prices are likely to remain firm through this year on reduced supply from the world's top two producers, Indonesia and Malaysia, due to adverse climatic conditions. Dorab Mistry, director at Godrej International, estimates CPO production in Malaysia could fall by 1.5-2 mt to 19 mt. Output in Indonesia is estimated at 31 mt. The two together produce 86 per cent of global palm oil. "With excess rainfall forecast this monsoon, there is hope for higher kharif oilseed output this year. However, the edible oil import bill would continue to rise on increasing domestic demand," said Atul Chaturvedi, chief executive at Adani Wilmar, the Fortune brand producer, of the total import basket, imports around a third of refined oil and the remaining two-third of CPO.

 

Source:.business-standard.com

India Ready To Import Gas For Idle Power Plants, Says Goyal

The government is ready to import at least 70 to 80 million metric standard cubic metres (mmscm) of natural gas for India’s idle gas-based power plants if it can secure long-term ‘affordable’ rates,

Piyush Goyal, Minister of Power, said.“This will enable India to operate its idle gas-based power capacity,” Mr. Goyal said addressing a conference on ‘The Future of Electricity’. Obtaining the required gas will lead to the re-starting of 20,000 MW of idle power capacity in India. The minister recently visited Australia and secured assurances for gas supply at $5 per mmbtu but suppliers were not willing to sign long-term contracts.

“If the government gets gas at $5 per mmbtu, gives custom duty waiver, reduces marketing margins and gas transportation charges by half and reduces inter state transmission charges to zero, the industry will be able to absorb the price” Sushil Maroo, MD & CEO, Essar Power Limited, told The Hindu.

As to what ‘affordable’ price sellers would agree to for long-term contracts, Anish De, Partner, KPMG, said, “The international market is oversupplied on gas.”

Adding that this could go on for five years or more, he said, “Earlier, suppliers were not looking at long-term contracts in the region of 7-10 years, he said. “They might look at it now.”
 

Source:thehindu.com

Iraq Overtakes Saudi Arabia As Biggest Indian Exporter For April: Data

NEW DELHI: Iraq overtook Saudi Arabia as the top crude exporter to India in April for the first time since December, according to data compiled by Reuters, as the two biggest OPEC producers fight for market share in Asia's fastest growing oil market.

Saudi Arabia also lost its top spot in China, Asia's biggest oil consumer, last month when Russia overtook the world's biggest crude exporter due to strong purchases by Chinese independent refineries.

Overall, April oil imports by India rose 6 percent from March and are up 9.9 percent in the first four months from a year ago. For the first four months of 2015, imports fell 0.6 percent from a year ago because of refinery outages.

Iraqi oil exports to India were 960,700 barrels per day (bpd) in April, a 41 percent jump from March and 79 percent higher than a year ago, data obtained by Reuters and compiled by Thomson Reuters Oil Analytics showed.

India imported about 787,700 bpd of oil from Saudi Arabia last month, about 14 percent lower than a year ago, the data showed.

Iraq accounted for 22 percent of April Indian imports, up from about 15 percent a year ago, while Saudi Arabia's share dropped to 18 percent from about 25 percent a year ago.

"Iraqi oil is much more beneficial than Saudi because they are better priced. There is a significance difference in prices," said A. K. Sharma, head of finance at Indian Oil Corp..

Iraq has consistently maintained their official selling prices (OSP) below Saudi Arabia. In April, Iraq set the OSP for its flagship Basrah Light crude at a discount of 2.60 a barrel to Middle East benchmarks, 20 cents under the OSP for comparable crude grade Arab Medium.

Overall, Indian crude demand rose in 2016 as refiners normally avoid maintenance shutdown in the first quarter to meet annual crude processing target for the fiscal year.

Also, Indian Oil Corp, the country's biggest refiner, boosted imports after commissioning the 300,000-bpd Paradip refinery.

Iran is also raising its share in Indian imports. The country accounted for about 9 percent of overall purchases in April compared to about 7.2 percent a year ago.

Overall in January to April, Iranian oil accounted for about 7.4 percent of Indian imports from about 4 percent a year ago, becoming fifth-largest oil supplier to India compared with the eighth position a year ago.

On the losing side, Latin American suppliers exported 8.2 percent less crude to India during January to April. The region's share in Indian imports declined to about 16 percent from about 19 percent a year ago as its oil has become uncompetitive in the ongoing price war.

The company, which spends 10 per cent of its revenue on branding/marketing, would launch its TV commercial this year.

It has plans to spend 50 per cent of its total investment on branding/marketing on digital platforms.

 

Source:economictimes.indiatimes.com

Tea Exports To Pakistan Up 47% At Rs 185 Crore In Fy16

NEW DELHI: Country's tea export to Pakistan jumped 47.50 per cent to Rs 184.56 crore in 2015-16.

The overall shipments of tea rose 10 per cent to Rs 4,200.46 crore in the same fiscal.

In 2014-15, tea exports to Pakistan had stood at Rs 125.12 crore and the overall exports were at Rs 3,823.64 crore.

In volume terms, outward shipments from India to Pakistan increased to 18.94 million kg in 2015-16 as against 15.20 million kg in the preceding fiscal, according to Tea Board's data.

India is the world's second biggest tea producer and also one of the largest consumers.

The country exports CTC (crush- tear-curl) grade tea to countries like Egypt, the UK, and other traditional varieties to Iraq, Iran, and Russia.

The export price to Pakistan increased to Rs 97.44 per kg in the period under review compared with Rs 82.32 a year ago.

The rise in tea exports was seen in major tea-importing countries like the CIS countries, the UK, Germany, Poland, the UAE, Bangladesh and Sri Lanka.

Tea production has been low this fiscal mainly due to unfavourable weather conditions. Besides, wage-related issues also hit tea producers.

The sector is also facing other issues including migration of labourers to other industries. Tea plucking in India mainly starts between July and October.

 

Source:economictimes.indiatimes.com