India’S Oilmeal Exports Jump 130 Per Cent In December

HYDERABAD: India’s export of oil meals more than doubled in December 2016 mainly driven by high demand of non-genetically modified (GMO) soybean meal from France, said Solvent Extractors’ Association of India.

The country exported 1,94,309 tons in December 2016, an increase of 130% from 84,218 tons reported same period last year. France imported 1,06,708 tons of oilmeals as compared to 1,956 tons last year, consisting of 1,03,650 tons of soybean meal and 3,058 tons of castor meal.  ..

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HYDERABAD: India’s export of oil meals more than doubled in December 2016 mainly driven by high demand of non-genetically modified (GMO) soybean meal from France, said Solvent Extractors’ Association of India.

The country exported 1,94,309 tons in December 2016, an increase of 130% from 84,218 tons reported same period last year. France imported 1,06,708 tons of oilmeals as compared to 1,956 tons last year, consisting of 1,03,650 tons of soybean meal and 3,058 tons of castor meal.  ..

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HYDERABAD: India’s export of oil meals more than doubled in December 2016 mainly driven by high demand of non-genetically modified (GMO) soybean meal from France, said Solvent Extractors’ Association of India.

The country exported 1,94,309 tons in December 2016, an increase of 130% from 84,218 tons reported same period last year. France imported 1,06,708 tons of oilmeals as compared to 1,956 tons last year, consisting of 1,03,650 tons of soybean meal and 3,058 tons of castor meal.

Japan too recorded a significant jump in imports at 54,833 tons as compared to 6,500 tons last year, consisting of 50,632 tons of soybean meal, 3,773 tons of rapeseed meal and 428 tons of castor meal. On a month on month basis, the export of soyabean meal jumped to 1,60,949 tons from 51,805 in November 2016.

However, the overall export of oilmeals during April to December 2016 was down 13% at 8,56,798 tons compared to 9,87,842 tons during the same period of last year. Among the major importers of oilmeals from India, South Korea’s import during April-December period declined to 4,52,099 tons from 6,16,691 tons in the corresponding period last year. Similarly, other importing countries like Vietnam saw their imports dwindling to 1,20,294 tons from 2,14,028 tons last year.

   

Meanwhile, a seven-member delegation of the association is visiting Argentina from January 8-16 to study the Argentine soybean complex and to understand processing, production, exports and supply system of soybean. Argentina annually exports close to 3 million tonnes of Soybean Oil to India which is approximately 80% of the soybean oil imported by India.

 

 

Soures :economictimes.indiatimes.com

Indian Rupee Closes Little Changed Against Us Dollar

The Indian rupee on Tuesday erased most of the gains and closed little changed against the US dollar as the traders avoided taking large positions ahead of the release of key macro economic data.

The rupee closed at 68.18 a dollar, up 0.03% from Monday’s close of 68.21. The rupee opened at 68.09 a dollar and touched a high and a low of 67.99 and 68.21 respectively. So far this year it fell 0.3%.

India’s benchmark Sensex index was trading at 26,893.23 points, up 0.62% or 166.38 points from its previous close. So far this year it gained 1%.

The government will issue index of industrial production (IIP) and consumer price inflation (CPI) data for November and December on 12 January. According to Bloomberg analyst estimates, IIP will be at -2.2%, while CPI will be at 3.5%. The government will also release wholesale price inflation data on 16 January.

The 10-year bond yield closed at 6.398%, compared to Monday’s close of 6.397%. Bond yields and prices move in opposite directions.

So far this year, foreign institutional investors sold $285.56 million in equity while $112.26 million buy in debt.

Most of the Asian currencies were trading higher as dollar index dropped amid narrowing US yield curves.

South Korean won was up 1.15%, Taiwan dollar 0.53%, Indonesian rupiah 0.41%, China renminbi 0.21%, Philippines peso 0.17%, Thai Baht 0.14%, Japanese yen 0.1%. However, China Offshore spot was down 0.14%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.85—down 0.1% from its previous close of 101.93.

 

Soures:.livemint.com

Budget 2017: Steel Min Seeks Import Duty Reduction On Coking Coal, Nickel

New Delhi: Ahead of the Union Budget 2017-18, the Steel Ministry has sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, a top official said.

In an interview to PTI, Steel Secretary Aruna Sharma said the dependence on imports is particularly heavy on nickel, coking coal and gas.

"What we are discussing is whether there is need to take a re-look at their custom and import duties. This is still under discussions. Let's see how it moves out during the Budget," the Secretary said.
Reuters

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The Steel Ministry, in its recommendations to the Finance Ministry, has sought bringing down the import duty on coking, coal, nickel and gas, Sharma said.

While the import duty on nickel is five percent, in the case of coking coal, it is 2.5 percent now.

Sharma also said that in the future, the requirement of gas will increase in the manufacturing of pellets and added, "Like what the Prime Minister has said, tomorrow's economy is going to be gas-based."

Pellets are small balls of iron ore used in steel making.

To bring down the imports of coking coal, Sharma said that her Ministry was is discussions with the Coal Ministry to invest in washeries.

"There are two ways of tackling imports. One is to replace the imports with a better alternative fuel. So, we are in discussions with Coal Ministry to invest in washeries and the Coal Ministry has agreed to invest in them so the coking coal imports will come down by nearly 30 percent which is a very good sign for the coming years," she said.

India has to heavily depend on import of coking coal, as the domestic quality has higher ash content which is unsuitable for the steel industry with present technology.

Asserting the need to go for electric-based or gas-based steel production, she said that "pellet making can easily shift to the gas-based thing if it is guaranteed at affordable prices."

"Now, with the Paris Convention, it is mandatory that we must bring down the carbon footprints. So, that is another alternative we are working on," she said.

Indian Steel Association (ISA), the industry body representing primary steel producers, has also urged the government to reduce import duty to zero on all the raw materials used for steel making.

Sanak Mishra, Secretary General of ISA said, they have also requested the government to reduce railway freight for the steel industry.

SAIL, India's largest steel maker, had recently said there is a need to develop indigenous sources of coking coal to meet requirements as the recent rise in the price of metallurgical coal was putting pressure on its operations.

 

Soures :economictimes.indiatimes.com
 

Rubber Growers Demand Sops From Government

The Centre should urgently step in to give an export price incentive of at least R5 per kilo for Indian rubber, leading growers of the commodity have said.

Only timely export push can haul up the domestic price, IRGA (Indian Rubber Growers’ Association) has told Parliamentary Standing Committee for Commerce in Kochi, during the hearing sessions on impact of Association of Southeast Asian Nations (ASEAN) pact on plantation sector.

Currently, there is a gap of Rs 30 per kilo between the international price and domestic price of NR. At Rs 160 per kilo, international price has been flying above the domestic price of the premium grade RSS-4 (Ribbed Smoked Sheet), which is Rs 130 per kilo this week.

“Unless the window of export opportunity is opened now, there will not be enough psychological pressure to haul up the domestic price, punched down by excessive NR imports in recent years.

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Price-realisation for rubber has been at such negative levels that farmers are quitting tapping, in the peak season. This could hit the crop’s future. We have urged the Parliamentary Committee that announcing an export incentive for NR at this fortnight, as the price-gap is as big as Rs 30, would be the best support measure for the country’s 10 lakh-odd rubber farmers,” IRGA general secretary Sibi Monipally told FE.

At present, the Centre’s MEIS (Merchandise Exports from India Scheme) includes only rubber products. The growers’ body has mooted that the Centre dips from its MEIS pocket to back the farmer in the export of rubber sheets too.

IRGA has also pleaded that, while entering into FTAs (free trade agreements), with other countries, the Centre should safeguard the interest of rubber farmers and MSME sector. “Livelihood clause” should be incorporated in all trade agreements to protect the small and marginal growers.

 

Sources :financialexpress.com

Import Duty Hike May Hit Jewellery Exports To Dubai

 India's gold and diamond-studded jewellery business is likely to take a hit, at least in the short term, following the hike in import duty from 0.36 per cent to 5 per cent, starting January, on all jewellery products exported to Dubai. Exporters may also stop using Dubai as a hub and start exporting directly to destination countries. In any case in last two months, huge exports already taken place for stocking there.

As much as 32 per cent of Gems and jewellery exported from India are headed to the UAE.


Sanjeev Agrawal, CEO of Gitanjali Exports Corporation said, "The jewellery business has in any case been facing an unfriendly business atmosphere in India since 2013, with the imposition of an increasing number restrictions that haven't spared even units in e-port zones. And now, the 5 per cent duty in Dubai, which has been a major market, will render Indian exports unviable."

Agrawal sees some export units shifting to Dubai and even new investment being made there in order to avoid the duty, unless the Indian government enters in a treaty with that country for a barter-like arrangement under which jewellery is exported against the import of crude oil.

Dubai is a hub for jewellery exports and several units are exporting ornaments from there with higher mark-ups to developed countries. Besides, many tourists prefer to buy their jewellery in Dubai, instead of their home countries, where prices in many cased are invariably much higher. Even the Indian tourist would rather buy jewellery in Dubai, as would the one from the US. In India, 10 per cent import duty, VAT and excise duty make it lucrative for tourists to buy jewellery from them.

Dubai is one of the few locations in the world where one can buy jewellery at a very low mark-up. For instance, plain jewellery. which is sold at a mark-up of 15-20 per cent in Dubai, is sold in some western countries at well over 100 per cent (in fact, nine-carat gold, which contains only 37.5 per cent of the precious metal, can command up to 400 per cent in some markets). What's more, in many cases such purchases also suffer local VAT. According to Sudheesh Nambiath, lead analyst for India and South Asia, GFMS Thomson Reuters, "This differential is significant for a hub like Dubai, where last year the number of visitors increased seven per cent year-on-year to 14.2 million, as against a world average of 4 per cent growth".

Nambiath added, "Our view is that the duty hike could logistically disturb the business in the short term, but for the longer term, the trade has already positioned itself to be a strong manufacturing hub with the required resources as likely to weather the storm."

India, while remaining the largest supplier of gems and jewellery, has seen a sharp fall in exports to the UAE, which dropped from 62 per cent in 2011 to just 34 per cent in 2016. India could also see a challenge to its leadership in items like diamond- and precious stone-set handmade jewellery. This is because the skill sets required to make such ornaments are likely to move to Dubai, following the recent surge in job losses in this sector in India. Besides, tax-free income in Dubai, efficient functioning of the workforce in the UAE, and low-cost capital are other factors that might provide impetus to the handmade jewellery fabrication business in that region.

Rajesh Mehta, CMD of Rajesh Exports said, "While our 60 per cent of exports are to Dubai, we will not affected much as we use Dubai as a hub to re-export the same jewellery. Duty has not been increased for such re-export."

Dubai has emerged as a hub for gem and jewellery exports due to the kind of facilities and flexibility extended to exporters that are not available in India. Some of these include a goods-return policy and lower credit cost.

South India-based jewellers are likely to take the biggest hit as they have all export heavily to Dubai.

There is a shopping festival going on in Dubai currently, and the timing of duty just ahead of this event will test its impact.

 

Sources :business-standard.com

Top 10 Farm Exports: Cotton No Longer Key In Farm Story

For the first time since 2005-06 when India became a major exporter of cotton following a large-scale adoption of Bt-seeds, the fibre has failed to be on the list of the country’s top ten farm export items.

According to the latest official data, exports of raw cotton — including waste —stood at just $308 million in the first half of this fiscal, less than a half of the level seen a year before. Cotton — which was the top farm export item in FY11 and FY12—has steadily lost ground and is now languishing at number 12 in the list of major commodities covering the farm and allied sector.

With domestic cotton prices mostly remaining above the global levels (by 5-10%) in recent months —thanks to an annual 11% drop in output in the last marketing year through September 2016 and a steady offtake by the domestic textile industry — cotton exports are unlikely to cross $700-800 million in the current fiscal, senior trade and industry executives told FE.

Cotton — which was the top farm export item in FY11 and FY12—has steadily lost ground and is now languishing at number 12 in the list of major commodities covering the farm and allied sector.
With domestic cotton prices mostly remaining above the global levels (by 5-10%) in recent months —thanks to an annual 11% drop in output in the last marketing year through September 2016 and a steady offtake by the domestic textile industry — cotton exports are unlikely to cross $700-800 million in the current fiscal, senior trade and industry executives told FE.

Exports are taking a hit due to demonetisation too, with adverse impact of the cash crunch on transportation and other activities.

With demand from top buyer China still subdued and Pakistan turning more protectionist against Indian cotton supplies, exports are unlikely to stage a sharp rebound this year, the sources said. This is despite the fact that India’s cotton output is expected to rise to 35.1 million bales in 2016-17 marketing year, compared with 33.8 million bales in the previous year. One bale equals 170 kg.

Pakistan had put cotton supplies from India through the Wagah and Karachi port on hold from November 23 on grounds of non-compliance of phyto-sanitary conditions before lifting the curbs last week.

In a recent interview to FE, textiles secretary Rashmi Verma had said the government was stepping up focus on domestic value-addition in cotton, which would help create more jobs locally. So, instead of promoting exports of the raw material, the textile ministry’s endeavour would rather be to facilitate greater outbound shipments of cotton-based finished products, Verma had said.

Until recently, China had been the biggest buyer of the Indian cotton, accounting for as high as 70% of the county’s total outbound shipments of cotton. With China gradually shifting from labour-intensive industries like garments and textiles and also trimming its massive inventory, its need for Indian cotton is unlikely to recover anytime soon. This means Indian cotton exporters will now rely more on Bangladesh, which has been ramping up purchases in recent years to meet growing requirement of its garments industry.

According to a November report of the US-based International Cotton Advisory Committee (ICAC), year-ending stocks in China, where much of the excess supplies are held, decreased by 13% to 11.3 million tonnes in 2015-16, as the government there sold over two million tonnes from its official reserves from May through September 2016. China restricted import quota to the volume required by its commitments to the World Trade Organization in 2015 and 2016, and announced that it will continue to do so in 2017. “In addition, the government is planning to begin sales from its reserves in March 2017 when the majority of the new crop will have been sold,” the ICAC said.

By contrast, Bangladesh is among the only three of the top 10 consuming countries where cotton requirement is going to rise, according to the ICAC. The consumption by the textile mills in Bangladesh is forecast to increase 12% to 1.2 million tonnes in 2016-17.

India’s farm exports, covering 43 major segments, stood almost flat at $15,192 million during the April-September period from a year earlier.

 

Sources :financialexpress.com

Imported Gold Worth $2 Billion Used For Conversion From November 11-20

MUMBAI: The latest estimates of gold imports by a leading industry source in the days following demonetisation shows that certain entities in the gold trade, in possible collusion with some bankers, helped people convert their black money to gold bars and jewellery.

While official import figures of November have not been released, the industry source said 72 tonnes were imported during that month. Of this, he claimed 52 tonnes worth Rs 15,000 crore were over $2 billion or brought in during November 11-20, days after demonetisation on Nov 8. Nine tonnes were imported in the first 10 days and 11 tonnes in the last 10 days of the month.

"That 52 tonnes were imported just after demonetisation from November 10 shows the hand of certain unscrupulous entities in the trade in facilitating conversion," the source said. "The government has its task cut out as it could ascertain which bank imported how much in the 10 relevant days and to whom were these sales made."

However, while admitting that "shady elements" had tarnished the entire jewellery trade's "image" Surendra Mehta, secretary of India Bullion & Jewellers Association (IBJA), claimed of the estimated 95 tonnes import, in Nov, 30% would have been for conversion of black money, unlike the trade source's figure of 70%.


IBJA has include dore or raw gold imports in its estimate unlike the trade source's one. Of his estimated figure 75 tonnes were imported in the first fortnight of the month."The price of gold came down and tariff value was revised downwards after Nov 16, when the remaining 25 tonnes were imported, we estimate.

 

 

Sources :economictimes.indiatimes.com

Car Exports Gain Speed, On Track In Fy17

 Prospects of a double-digit growth in the domestic passenger vehicles market in the current financial year look uncertain after demonetisation but a stronger growth story in the export market seems intact. Passenger vehicles (cars, vans and utility vehicles) exports are on track to hit a new record in FY17, as shipments continue to post strong double-digit growth.
 
In the first eight months of FY17, exports have grown about 16 per cent to 499,037 vehicles, against a growth of 9.84 per cent in domestic sales volume (to two million units) of companies. In the corresponding period of FY16, exports had grown by only 4.3 per cent. Export volumes could cross 700,000 units for the first time in a year on the back of a sharp surge in numbers from companies such as Ford, Volkswagen and General Motors. India exported a record 653,889 vehicles in FY16, growing only about five per cent over the previous year. Latin America, Africa and Europe are top export destinations for India-made cars.
 
A double-digit growth in exports is seen after three years. Hyundai, the largest exporter, also posted a four per cent growth and shipped almost 119,000 vehicles in the first eight months of the financial year. “With India becoming a stage for the launch of more and more global models by automobile multinationals, these models are presenting an opportunity for export to non-manufacturing markets,” said Rakesh Srivastava, senior vice-president (sales and marketing) at Hyundai.

 
Like the domestic market, growth in export volume is being driven by the utility vehicles (UVs). UVs exports have surged 48 per cent to 107,916 units in April-November period. Hyundai exported 33,308 units of its popular sports utility vehicle Creta in April-November period this year against 3,866 units in the corresponding period last year (the vehicle was launched in July 2015).
 
Ford, the second-biggest passenger vehicle exporter after Hyundai, maintained the export volumes of EcoSport at about 57,000 units in first eight months. M&M also reported an increase in exports of Scorpio and XUV500. Against the 48 per cent growth in UVs export, export of cars has grown 9.5 per cent. India exported 389,189 cars in the April-November period. New models like Creta and Baleno helped growth in shipments of UVs and cars, respectively. Maruti Suzuki has exported over 28,000 units of Baleno this year.
 
Among the companies, largest volume addition has come from General Motors. It has shipped 43,015 vehicles in April-November period, registering a 240 per cent growth over last year. India is fast becoming a major export hub for a number of manufacturers and GM India is no exception, Kaher Kazem, president and managing director, GM India said last month. GM India, like Volkswagen, Ford and Nissan, sells more India made vehicles outside than in the country.  
 
Srivastava said the rising volumes in the domestic and export market is improving the economies of scale of companies and making the country a more competitive base for export of quality products.

 

Sources :.business-standard.com

India To Export 220 Mw Electricity To Nepal

India is all set to export an additional 220 MW electricity to Nepal in a bid to lessen the perennial power crisis in the energy-starved Himalayan nation.

Nepal will get 190 MW within three weeks and another 30 MW by another two months.

Nepal currently imports 300-320 MW electricity from India, the Indian embassy said in a tweet.

Both governments are working towards increasing this amount by additional 250 MW in next two months.

The electricity from India will be imported through various cross-border corridors.

Though Nepal has huge potential of generating hydro energy of over 80,000 MW round the year, it could not harness more than 800 MW as against the winter demand of more than 13,00 MW. The poor rate of production is attributed to lack of political consensus, instability and resource crunch.

Nepal is going through power cuts of more than 13 hours a day in winter season, but has been managing the power crisis during rainy seasons as its power stations run in full capacity.

After an upgrade of the Muzaffarpur-Dhalkebar cross border transmission line, Nepal and India will be able to export and import more energy.

The completion of this power corridor will allow Nepal to significantly increase its energy imports from India. Nepal is currently importing 80 MW  from this station.

During a meeting in November in New Delhi, the Indian side had agreed to add 220 to 250 MW electricity to Nepal, a senior Nepal government official said.

As part of that agreement, India’s Power Trading Corporation had agreed to provide 30 MW electricity round the clock from Tanakpur substation located in far west of Nepal from Uttarakhand.

Several cross-border transmission lines are proposed between Nepal and India, and some are already under construction.

 

Sources :hindustantimes.com

Zero Import Duty On Wheat Will Lead To Dumping: Unions

 Farmers’ unions and agriculture experts are anguished over the Centre’s decision to scrap the import duty on wheat as they fear that farmers’ income will be affected and they will have to resort to distress sale during the rabi season.

The All India Kisan Sabha said government agencies had failed to procure wheat at the minimum support price (MSP), and without an adequate number of open purchasing centres, farmers are forced to sell their crop at lower prices.

“The decision of scrapping the import duty ahead of the winter wheat crop is aimed at helping agri-businesses by dumping wheat from foreign countries in India,” AIKS president Amra Ram said.

He said that big players in the wheat flour market had been demanding withdrawal of the duty, and this move was to suit their interests.

The Centre recently announced zero import duty from the prevailing 10 per cent to improve domestic availability and check rising prices of wheat and wheat-based products.

“Wheat traders are expecting imports to cross five million tonnes this year. The cost of imported wheat would be far below the MSP of ongoing rabi (Rs. 16,250 a tonne), resulting in crashing domestic wheat prices as the government has no effective procurement mechanism in many States,” he said.

Detrimental step

Nirbhay Singh, leader of the Kirti Kisan Union in Punjab, said, “With easing norms for wheat imports, the government has taken a detrimental step towards farmers’ interest. We have seen it in every season that though the government promises to buy crop at the MSP, yet farmers sell their produce in distress at a lower price for various reasons,” he said.

Agriculture experts also expressed concern over the Centre’s decision and apprehended that the move could badly hurt farmers’ income.

“The government has been saying that wheat sowing has not been impacted by demonetisation and the area of cultivation has increased. If the area has actually increased, and there are no other indications that wheat production will be down in the ongoing season, then why is the government allowing import of duty-free wheat?” asks Ajay Jakhar, chairman of Bharat Krishak Samaj.

“It will lead to a drop in wheat price by at least Rs. 250 per quintal in the open market,” he added.

Devinder Sharma, noted agricultural and food policy analyst, said: “Scrapping duty on wheat would be detrimental to Indian agriculture. First, we did it with oilseeds then with pulses and now with wheat. Importing wheat will hurt our farmers.”

“Prices of wheat have been going up due to the government’s failure. But the farmers should not be penalised for that,

 

Sources :thehindu.com

Rupee Trades Near Fresh Low Against Us Dollar

Mumbai: The Indian rupee on Monday was trading near a fresh record low against the US dollar, amid nearly $5 billion outflows from foreign institutional investors (FIIs) in local equity and bond markets since the government announced the demonetisation scheme.

The FIIs are selling local as well as other emerging market assets on rising expectations of a possible US interest rate hike in its next mid-December policy and as speculation mounts that US president-elect Donald Trump’s reflationary policies will mean a quicker pace of monetary tightening by the Federal Reserve. The concern that he will take a more protectionist approach to trade has also weighed on developing-nation assets.

At 2.30pm, the rupee was trading at 68.74 a dollar, down 0.3% from its previous close of 68.47. The home currency opened at 68.43 against the US dollar and touched a low of 68.80 a dollar. So far this year, it has fallen 3.7%.

Barclays expects that the currency volatility could increase and liquidity could become scarce during bouts of market risk aversion and dollar strength, as the market tests the new Reserve Bank of India (RBI) leadership’s tolerance for weakness in the rupee.

“Unless the RBI hints at greater tolerance of larger rupee depreciation, we continue to hold a constructive medium-term view on the INR and see it as one of the most resilient EM currencies in a strong dollar environment. Potential anti-immigration and anti-trade policies in the US would not bode well for developing economies, and the dollar likely would strengthen next year—particularly against EM currencies. Rupee is unlikely to ‘escape the beta’ (to the USD) and likely also would drift higher as the rest of USD/EM FX adjusts, especially if the market sees the RBI as continuing to be less tolerant of rupee appreciation than it is of rupee depreciation,” said Barclays report.

India’s benchmark Sensex index was trading at 26,333.75 points, up 0.05% or 12.82 points from its previous close. So far this year, it has fallen 1%.

Traders are also cautious ahead of the key gross domestic product (GDP) data which will be released on 30 November. According to Bloomberg estimates, GDP will be 7.6% for the September quarter from 7.1% in the June quarter.

Bond yields gained after the RBI on Saturday unexpectedly ordered banks to deposit their extra cash with it, in a bid to absorb excess liquidity generated by the government ban on larger banknotes.

The central bank said banks would need to transfer 100% of their cash under the RBI’s cash reserve ratio from deposits generated between 16 September and 11 November, saying it was a temporary measure that would be reviewed on or before 9 December.

Traders called it a drastic move intended to dent the rally in bond markets, adding that the RBI could have opted for more modest measures such as sucking out some of the liquidity through sales of market stabilisation bonds or telling banks to park funds under reverse repos, Reuters reported.

The benchmark 10-year government bond yield gained 8 basis points, to 6.343%, compared to Friday’s close of 6.231%. Bond yields and prices move in opposite directions.

So far this year, FIIs have bought $4.57 billion in equities and sold $3.02 billion in debt.

Most Asian currencies advanced as the dollar index and US treasury yields dropped, while oil prices declined after a planned meeting on Monday between OPEC and non-OPEC producers was cancelled.

Japanese yen was up 1.23%, South Korean won 0.6%, Taiwan dollar 0.33%, Singapore dollar 0.33%, China offshore 0.3%, China renminbi 0.25%, Indonesian rupiah 0.2% and Thai baht rose 0.2%. However, Malaysian ringgit was down 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 100.79, down 0.69% from its previous close of 101.49

 

Sources :.livemint.com

India Imports 17.2 Lakh Tonnes Of Wheat This Year

 Indian flour mills have imported 17.2 lakh tonnes of wheat from Ukraine, Australia and France so far this crop year to meet domestic shortages.

Additional 6-7 lakh tonnes of wheat shipments are expected to arrive in the coming months of the 2015-16 crop year (July-June), taking the country's overall imports to 24 lakh tonnes this year.


Last year too, private flour millers had purchased about 5 lakh tonnes of wheat from Australia for the first time in a decade, due to sluggish supply of domestic high protein wheat and lower international prices.

"So far, 17.2 lakh tonnes of wheat has been imported from Ukraine, Australia and France. We need more and additional 6-7 lakh tonnes are expected till February," Roller Flour Millers' Federation of India Ex-President M K Datta Raj told PTI.

Of the total exports till date, about 10.7 lakh tonnes were purchased from Ukraine, 5 lakh tonnes from Australia and 1.5 lakh tonnes from France.

Wheat imports are being undertaken to meet domestic shortages and moreover the grain is available in the global market at much lower than the local prices, he said.

For instance, imported red wheat was costing Rs 1,880 per quintal for delivery in Bengaluru, while the local wheat was quoting higher at Rs 2,060 per quintal.

Similarly, imported white wheat was costing Rs 2,080 per quintal compared with Rs 2,400 per quintal delivered from Uttar Pradesh.

Stating that more import deals are expected in the coming months, Raj said this is because state-run Food Corporation of India (FCI) has restricted wheat sale to bulk users.

He also demanded that if the government further brings down the import duty on the grain to zero from the current 10 per cent, more wheat could come from abroad.

"Weakening of rupee is increasing the cost of imports. It would be better if the government soon takes a call on this issue," he said.

FCI is selling more wheat in North India to check retail prices of wheat and wheat flour, which have shot up by 23 per cent in the last one year.

For instance, retail price of wheat in Delhi has gone up to Rs 24 per kg from Rs 19 per kg in the year-ago period. Similarly, retail price of wheat flour has increased to Rs 27 per kg from Rs 21 per kg, as per the government data.

Rising wheat imports and spike in retail prices indicate short fall in the domestic output in the 2015-16 crop year, but the Agriculture Ministry has maintained production to be 93.50 million tonnes despite drought in over 10 states.

At present, the country is consuming the wheat grown in 2015-16 crop year. The new crop is being sown at present and will arrive in the market only in April.

 

Sources :.business-standard.com

Handloom & Handicraft Industry Eyes New Markets For Exports

 The Textiles Ministry is looking to concentrate on new markets and opportunities for local handloom and handicraft sector as many global companies are willing to tie-up with Indian weavers and artisans. “There is a huge scope for promoting Indian handloom and handicraft products in the niche markets world over,” said Rashmi Verma, Textiles Secretary, at an Assocham event held in New Delhi on Friday.

While most of the sectors registered a decline in exports of Indian products to global markets, export of handicrafts continued to grow at the rate of 17 per cent. “All stakeholders should make efforts to engage with artisans and weavers in the country and hand-hold them not only for ensuring that they get right price and market for their products and also get recognition which they deserve in the world and domestic markets,” she added.

The Union Textile Ministry has signed memorandum of understanding (MoU) with 20 e-commerce companies to engage with artisans and weavers in different handloom and handicraft clusters across India and help them market their products directly. “This will go a long way in ensuring that they get the right price for their product as they are able to sell their product directly to the consumer,” said Verma.

The government is also taking steps for skilling weavers, for giving them design inputs, quality raw material, tools and upgrading their looms to empower them so that they continue to remain engaged in this craft.

“We are finding that younger generation is slowly getting disinterested in this sector and are moving towards information technology (IT). The Textiles Ministry has taken an initiative for training children of weavers and artisans to become entrepreneurs so that they can emerge as leaders in producers’ groups and market their products through e-commerce and other channels directly. This is also in one way trying to attract children of weavers and artisans back into this trade,” she said.

She further said that there are a number of design workshops especially for the weavers and artisans whereby they are informed about current market trends and demand of the market because they have to be sensitised to the needs of the market and only then they will be able to produce what the consumer wants and not try to sell whatever they have made.

According to Textile Ministry’s analysis, many of the weavers and artisans have become workers and labourers in the hands of traders or exporters. “They get paid wages on a daily basis on whatever work they do in one day, so instead of selling their craft and talent, they are now selling their labour, as a result, this has disinterested the young generation,” she said.

Dependence upon middle men for raw material, working capital and even the design are other factors forcing the weavers and artisans to sell off their talent and craft. “It is very-very important that we all together take steps so that dignity of the weaver and artisan is restored and we empower them to be able to sell their talent and their products and not their labour,” stated Verma.

She added, “Sometimes, it is important to have these traders and exporters because they give them the kind of market which these products deserve but it is also important to ensure that these people continue in the tradition of handloom weaving and handicrafts by empowering them by ensuring that they get working capital, are able to get good designs and also have a marketing nexus of their own.

 

Sources :.business-standard.com

Pakistan Stops Import Of Cotton From India Amid Tension

Pakistan has suspended the import of cotton and other agriculture commodities, including vegetables, from India due to rising tensions between the two countries along the LoC, a media report here said.

Officials of Department of Plant Protection (DPP) said that import of agri items from India through the Wagah border crossing and Karachi port and issuing permits for future imports has been halted, the Dawn reported.

Cotton importers and customs clearing agents claimed that the department had stopped the import of agriculture commodities from India without a warning or written order because of increase in tensions across the LoC.

Imran Shami, chief of DPP which is a subordinate department of the national food security and research ministry, however sought to dispel the impression.

"We have stopped import of tomatoes and other fresh vegetables in order to protect our farmers. We have enough tomato and other vegetables stocks, which we import from India only in case of shortages in the domestic market," he said.

The reason behind the "suspension" of cotton imports from India was, nevertheless, different, he said.

"No. We have not stopped cotton imports from India. It has just been halted over reports that the Indian exporters are not meeting our bio-security conditions. We're looking into these reports and will lift restriction on cotton imports if our apprehensions are proved wrong," Shami said.

He said only those cotton consignments would be allowed to enter Pakistan through surface or sea routes where importers had already secured permits from his department and carried phyto-sanitary certificates.

"Our cotton consignments are not being allowed to enter Pakistan through Wagah and Karachi for reasons known to the ministry but cheaper, subsidised Indian yarn is being brought in without any let or hindrance. At least 11 trucks of Indian yarn entered Pakistan on Thursday when the department stopped cotton consignments from coming to this side of the border," a textile factory owner told Dawn.


He said the suspension of cotton import from India would create a huge problem for the textile exporters as the truncated domestic crop target of 11.25 million bales for this year appeared difficult if not impossible to meet.


"The industry requires 14 million bales. We will still be short by three million bales of cotton even if the crop target is achieved," he said.
Top Comment
Dear Mr. Modi, you keep harping on the sacrifices of the Indian Soldiers at the Indo - Pak Border why have you not till date taken away the MFN status given to Pakistan. Again Pakistanis have snuubed... Read MoreSanjeev Sikka


He said cotton shortages after the ban on Indian imports would make domestic prices shoot up at the expense of exports.


Pakistan had imported 2.7 million bales of cotton (1 bale is 170 kgs) - about 40 per cent of India's total cotton exports in 2015-16 - due to crop failure that wiped off 0.5 per cent of GDP growth. The industry is expecting to import 2 million bales this year.
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Officials of Department of Plant Protection (DPP) said that import of agri items from India through the Wagah border crossing and Karachi port and issuing permits for future imports has been halted, the Dawn reported.

Cotton importers and customs clearing agents claimed that the department had stopped the import of agriculture commodities from India without a warning or written order because of increase in tensions across the LoC.

Imran Shami, chief of DPP which is a subordinate department of the national food security and research ministry, however sought to dispel the impression.

"We have stopped import of tomatoes and other fresh vegetables in order to protect our farmers. We have enough tomato and other vegetables stocks, which we import from India only in case of shortages in the domestic market," he said.

The reason behind the "suspension" of cotton imports from India was, nevertheless, different, he said.

"No. We have not stopped cotton imports from India. It has just been halted over reports that the Indian exporters are not meeting our bio-security conditions. We're looking into these reports and will lift restriction on cotton imports if our apprehensions are proved wrong," Shami said.

He said only those cotton consignments would be allowed to enter Pakistan through surface or sea routes where importers had already secured permits from his department and carried phyto-sanitary certificates.

"Our cotton consignments are not being allowed to enter Pakistan through Wagah and Karachi for reasons known to the ministry but cheaper, subsidised Indian yarn is being brought in without any let or hindrance. At least 11 trucks of Indian yarn entered Pakistan on Thursday when the department stopped cotton consignments from coming to this side of the border," a textile factory owner told Dawn.


He said the suspension of cotton import from India would create a huge problem for the textile exporters as the truncated domestic crop target of 11.25 million bales for this year appeared difficult if not impossible to meet.


"The industry requires 14 million bales. We will still be short by three million bales of cotton even if the crop target is achieved," he said.
Top Comment
Dear Mr. Modi, you keep harping on the sacrifices of the Indian Soldiers at the Indo - Pak Border why have you not till date taken away the MFN status given to Pakistan. Again Pakistanis have snuubed... Read MoreSanjeev Sikka


He said cotton shortages after the ban on Indian imports would make domestic prices shoot up at the expense of exports.


Pakistan had imported 2.7 million bales of cotton (1 bale is 170 kgs) - about 40 per cent of India's total cotton exports in 2015-16 - due to crop failure that wiped off 0.5 per cent of GDP growth. The industry is expecting to import 2 million bales this year.
Stay updated on the go with Times of India News App. Click here to download it for your device.

 

Sources :timesofindia.indiatimes.com

India's April-September Tea Exports Drop By 2%

NEW DELHI: India's tea exports declined by 2 per cent to Rs 2,084.06 crore in the first six months of the current fiscal.

In the April-September period of last year, the total value of tea exports was Rs 2,124.97 crore, according to Tea Board's latest data.

In terms of quantity, the exports have dipped to 101.04 million kg from 106.36 million kg in the corresponding period last fiscal.

As per the Tea Board, the exports in value terms remained slightly higher in the six-month period of the 2016-17 fiscal on better unit value realisation.

The export realisation was Rs 206.26 per kg as against Rs 199.79 per kg a year ago.

Tea export from North Indian states -- Assam, West Bengal and others - was marginally lower at 58.10 million kg in the April-September period as against 58.38 million kg in the year-ago period.

 Similarly, the overseas shipment from South Indian states -- Tamil Nadu, Kerala and Karnataka -- was down at 42.94 million kg as against 47.98 million kg in the said period.

Whereas, tea production is estimated to have been 795.89 million kg in the first six months of this year, which is almost same as it was in the year-ago period.

India is the second-largest tea producer in the world after China, with over 70 per cent of the beverage produced, being consumed in the country itself.

In the full 2015-16 fiscal, the country sold 232.92 million kg in the overseas market and the export realisation was about Rs 4,493.10 crore.

 

 

Sources :economictimes.indiatimes.com

Rupee Opens 5 Paise Up At 68.11 Against Dollar

NEW DELHI: Indian rupee opened nearly 5 paise up at 68.11 against dollar on Tuesday on account of some selling of American currency by banks and exporters. Meanwhile firm opening of domestic equity markets also supported sentiments.

At 9.15 am, rupee was trading 3 paise up at 68.13 against dollar. Benchmark equity indices BSE Sensex and NSE Nifty were up by 163.02 points and 60.05 points at 25928.16 and 7,989.15.

On Monday, the local currency slipped for the second straight day and closed 3 paise down at 68.16 against dollar. In cross-currency trades, rupee gained against the pound sterling to finish at 84.14 against 84.66 on last Friday, but fell against the euro to settle at 72.79 as against 72.37. It strengthened further against the Japanese yen and close at 61.62 against 61.72 per 100 yens earlier.

According to market experts, sustained foreign money outflows mainly affected the rupee movement against the dollar on Monday. However, weakness of dollar in the international market capped the rupee fall against the dollar. Foreign portfolio investors stood net seller on Monday and sold shares worth Rs 873.11 crore, according to the data available with NSDL.

HDFC Securities in a research note said, "We advise trader to remain long in USDINR Nov. Fut. for new all time high target above 69.21, keeping a stop loss at 67.50 on closing basis."

 
The 10-year benchmark bond yield eased further and opened at 6.28 per cent on Tuesday against previous close of 6.30 per cent

 

Sources:economictimes.indiatimes.com

Steel Imports Drop 39% To 4.5 Million Tonnes In April-October

NEW DELHI: Helped by steps to protect the industry, steel imports have declined 39 per cent to 4.5 million tonnes during April-October of this fiscal over the same period a year earlier.

"The government has taken various steps in the interest of the domestic steel industry from unfair foreign competition and the same have yielded positive results," Steel Minister Chaudhary Birender Singh said in a reply to the Lok Sabha.

Price realisation has improved, imports of steel have declined by 39 per cent to 4.5 million tonnes (mt) during April-October 2016 as against the corresponding period last year, the minister said.

Since the beginning of 2014-15, the Indian steel industry has witnessed severe stress due to surge in imports from countries saddled with excess capacity and fall in domestic prices.

In India, steel prices of HR coils fell to Rs 30,000 in January 2016, from a high of Rs 47,000 in April 2014.

Volume of steel imports increased to 11.71 mt in 2015-16, from 5.45 mt in 2013-14. With the decline in domestic steel prices, the net sales realisation and profit margins of domestic steel producers fell and the erosion in profit margin for the steel companies significantly decreased their debt servicing capability.

"The government has various export promotion schemes like Merchandise Exports from India Scheme (MEIS), duty exemption scheme, interest equalisation scheme etc under the Foreign Trade Policy 2015-20 which are also available for export of iron and steel goods," he said.

 

Sources :economictimes.indiatimes.com

Micromax To Start Making Smartphones In India By March 2017

NEW DELHI: Micromax Informatics is planning to make smartphones on a completely knocked down or CKD basis in India, by March next year, which could make it the first local manufacturer to take the plunge in the market where all but only Samsung is assembling phones.

"We're on the verge of importing our first set of CKD units," Micromax co-founder Vikas Jain said, adding that the company was looking at beginning before the end of the financial year.

"While we are working on logistics and building infrastructure, it will be at our new facilities either at Telangana or Bhiwadi," he said. The company is yet to decide the capacity of production from CKD units but is expecting its first shipment of CKD units soon. The move will be a step up in value addition for the home-bred handset maker, which makes 3 million phones a month in Rudrapur and Telangana factories, more than half of which falls in the smartphone category.

The company's third plant is set to come up in Bhiwadi, Rajasthan, and the fourth one in Bhopal, Madhya Pradesh. An investment of Rs 2,000 crore has been marked out for making phones and electronics such as televisions, tablets and accessories locally, over the next five to six years.

At present almost all companies that sell phones in India, either import fully built units or semi-knocked down (SKD) phones from China, which can be assembled together with little manufacturing requirement. The process, however, is labour intensive and therefore offers jobs in large numbers to
fairly low skilled workers.

Making phones from completely knocked down (CKD) versions, involves mounting of components onto a printed circuit board (PCB) mechanically, where
the PCB and other components are required to be imported separately from China, and then put together. In terms of value addition, CKD is a step above SKD, and lays the groundwork for assembling components that in turn go into making handsets.

"PCB assembly done locally can provide a 2% cost improvement on bill of material, which can in turn reduce overall cost of the phone," Tarun Pathak, senior analyst at Counterpoint Research said.

The move will aid in quality control and better control on design, which local handset makers have begun to do in house.

 

Sources :economictimes.indiatimes.com

Cash Crunch Puts Brake On India's Cotton Exports; Rivals To Gain

Exports of 1 million bales of cotton from top producer India have been delayed after a government move to ban high-value currency notes prompted farmers, who prefer cash payments, to postpone sales, industry officials told Reuters.

The supply crunch has driven up prices in India to levels higher than in the global market and could force buyers to switch to other producers like the United States, Brazil and African countries. It could also curb India's total exports in the 2016/17 year marketing year that started on Oct. 1.

"Supplies are very limited in the market. Farmers are not selling cotton right now as they need payments in cash and it is not available," said Chirag Patel, chief executive officer of Indian exporter Jaydeep Cotton Fibers.

Earlier this month, Prime Minister Narendra Modi scrapped 500 rupee and 1,000 rupee bills to crack down on corruption. But the move disrupted trading of farm commodities like cotton and soybean as most farmers prefer payments in cash.

"November remains a peak supply month but now supplies have stopped due to the cash crunch. We are ready to give farmers cheque, but they are insisting on cash," said Pradeep Jain, a ginner based in Jalgaon in Maharashtra.

Expecting a bumper crop of 35 million bales, Indian traders had contracted 2 million bales for exports to China, Vietnam, Bangladesh and Pakistan for shipments in November to January. But traders have managed to ship only around 300,000 bales and nearly 1 million bales that were due to ship in November and December are getting delayed, three exporters told Reuters.

India's inability to ship promptly could force buyers to switch to other suppliers like Brazil and the United State, said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia. "In fact, this may be one reason why U.S. cotton is going higher at harvest time."

New York cotton futures last week touched a high of 72.75 cents per pound, the loftiest since August. They have risen about 5 percent over the past fortnight, versus a 10 percent gain in Indian prices.

The surge in local prices is also making signing new export deals difficult for India as overseas prices are lower than local prices, Jaydeep Cotton's Patel said.


The disruption in exports will have an impact on global prices as it reduces the overall supply, said Rebecca Pandolph, statistician of International Cotton Advisory Committee. "How much of an effect will depend on how long the situation lasts."


However, industry officials say the crunch is temporary and prices will moderate as India is set to harvest a bumper crop. Last year, the country shipped out 6.9 million bales.


"The Indian crop is still very big and if price pressure doesn't come now, then it's only being delayed and that pressure will arrive at some point,

 

Sources:timesofindia.indiatimes.com

Hyundai India Targets To Roll Out Its 10 Millionth Car By H1 Of 2021

 Hyundai Motor India Ltd (HMIL) sets a target of rolling 10 millionth car by the first half of 2021 from its Sriperumbudur manufacturing facility, near Chennai, from where the company on Monday rolled out its seven-millionth car.

Creta AT got the distinction of being the seven-millionth car.

With this, HMIL has achieved the second best position in Hyundai Motor group amongst its overseas peers, only after China. It is also the first auto manufacturer in India to achieve this feat in a record time within 18 years of commercial operation.

It may be noted, HMIL rolled out its first millionth car, a Santro, in 2006 just eight years after commencement of commercial production in 1998.

Thereafter, production picked up momentum, with the next millionth milestone being achieved within an average of 18 -19 months. The five-millionth car was flagged off in October 2013.

Managing director and Chief Executive Officer of HMIL, Y K Koo, said, " HMIL has always set new benchmarks in terms of quality and customer delight by introducing new products with new technology and design to the Indian market, demonstrating superior manufacturing prowess. Our 'Made in India' products have impressed global and Indian customers alike."

"We now have to move to realise our vision as announced during our 20th year of foundation on May 6th, 2016, of being the Market Leader, Great place to work, Most loved and trusted the brand with Modern premium brand essence to touch 10 million units within the first half of 2021," Koo added.

HMIL has held the top exporter position consistently for 12 years since 2004 with a volume of 24,64,723 to date. It currently has ten car models across segments — Eon, i10, Grand i10, Elite i20, Active i20, Xcent, Verna, Creta, Elantra, Tucson and Santa Fe. HMIL's fully integrated manufacturing plant forms a critical part of HMC's global export hub.

It currently exports to around 92 countries across Africa, Middle East, Latin America, Australia and the Asia Pacific.

 

Sources :business-standard.com