Rbi Sets Rupee Reference Rate At 66.83 Against Us Dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 66.83 against the US dollar and 75.91 for the euro.

These rates were 66.96 and 75.94, respectively, yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 96.93 and 62.10 per 100 yens, respectively, based on reference rates for the dollar and cross-currency quotes at noon.

The SDR-rupee figure will be based on this rate, the statement added.

Source:- http://ift.tt/15HW3lL

Anti-Dumping Duty On Chemical Import From China, Russia

New Delhi, June 6 () Government has imposed anti- dumping duty of USD 122.14-279.78 per tonne on import of a chemical, used in pharmaceutical and fragrance sectors, from China and Russia to protect domestic manufacturers.

The levy on the import of 'Dichloromethane (Methylene Chloride)' will remain in place for a period of five years from December 2015, the Central Board of Excise and Customs (CBEC) said through a notification.

In December last year, a provisional anti-dumping was imposed on such imports.

The definitive duty follows a recommendation for the same by Directorate General of Anti-Dumping and Allied Duties (DGAD).

CBEC said the DGAD in its final findings had concluded that the Methylene Chloride has been exported to India from the two countries has been below normal values and the domestic industry suffered "material injury" by the dumped imports.

The DGAD had made the case for definitive anti-dumping duty on the imports to remove injury to the domestic industry.

Acting on complaint of Chemplast Sanmar and Gujarat Fluorochemicals, the DGAD had initiated a probe in April last year to ascertain if the chemical was being dumped into India at below normal value.

Methylene Chloride is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, pharmaceuticals, agro and fragrance. It is also used as an extractant for edible fats, cocoa, butter and essences.
WTO member countries are allowed to apply anti-dumping measures on imports of a product if the exporting company ships the product at a price lower than the price it normally charges in its home market and the dumped imports cause or threaten to cause injury to the domestic industry.

 

 

Source:imesofindia.indiatimes.com

Government Weighs Doubling Capacity Of Lng Import Terminal

NEW DELHI: India plans to more than double its liquefied natural gas (LNG) import terminal capacity in six years to cater to the rising natgas demand from refineries, fertilizer and power plants.

Plans to set up new terminals and expand existing facilities will push up LNG terminal capacity to 47.5 million metric tonne per annum (mmtpa) by 2022 from the current 21.3 mmtpa, according to an oil ministry document.

In 2015-16, the natural gas consumption in the country rose barely 2 per cent to 52 billion cubic meters, of which 40 per cent was imported as LNG. But in the last few months, the consumption has soared, rising 14 per cent in April, banking on cheaper imports that rose 45 per cent.
Government weighs doubling capacity of LNG import terminal
As the economy expands and industries and households increase their consumption of natural gas, the dependence on imported LNG will only increase since the domestic output has been declining for years. A three-fourths collapse in natural gas prices in two years has made imports attractive.

The fertilizer and power sectors have been key consumers of the natural gas in the country, depending mostly on domestic output, while refineries and petrochemicals plants have relied more on imported gas.

The imported gas is liquefied at source and carried by ships to LNG import terminals where it is regassified for further supply. With expanding need for imports, Indian also needs to add more LNG terminal capacity.

Currently, there are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in Kerala. The recently-built Kochi terminal is barely functional due to the delay in the construction of pipeline planned to connect the terminal with the consumers.

 The capacity at Dahej is expected to expand to reach 15 million tonne by the year end from 10 million tonne at present, and further to 17.5 million tonne in future, according to the oil ministry document.

A new LNG terminal at Ennor in Tamil Nadu , being built by state-run Indian Oil Corporation BSE 0.28 %, with a capacity of 5 million tonne, is expected to be completed in three years.

Adani group is developing a 5 million tonne capacity at Dhamra in Odisha while Shell and GAIL BSE -0.07 % plan to set up a 5 million tonne terminal at Kakinada in Andhra Pradesh.

 

Source: economictimes.indiatimes.com

India To Soon Run Out Of $70-Bn Oilmeals Market

 India is steadily making an exit from the $70-bn oilmeals markets, due to non-availability of seeds for crushing and emergence of alternative supply sources on bumper oilseed crops there. Seed crushing mills have sought immediate relaxation in government policies for India to regain its lost glory in global oilseed markets.

Until three years ago, India used to contribute over 5 per cent in global oilmeals trade with availability of abundance of oilseeds from local sources. India's oilmeals exports, however, have declined by a staggering 94 per cent at a mere 7,737 tonnes in May 2016 as compared to 121,339 tonnes in the corresponding month last year.

Falling oilmeals exports have worsened financial health of Indian seed crushing mills. Most of them, therefore, have reduced their operating capacity to less than 50 per cent to reduce their losses which they incur currently at around Rs 1,000-1,500 for per tonne of seed crushing.

"India will soon go out of global oilmeals markets if the current trend in its exports continues," said B V Mehta, Executive Director, Solvent Extractors' Association of India (SEA).

Over the last three years, India's oilmeals exports have witnessed a free fall due to rapid change in global business environment. From the level of 4.38 million tonnes in 2013-14, India's oilmeals exports slumped to 2.47 million tonnes in 2014-15 and further 1.21 million tonnes in 2015-16. Trade sources estimate less than one million tonnes of oilmeals exports from India during the current financial year i.e. 2016-17.

Indian oilmeals exporters have been facing multiple problems which affected its shipment. Because of the fixation of the minimum support price (MSP) of oilseeds, mills have been unable to buy seeds from farmers below the MSP resulting into higher cost of meal production. Since vegetable oil prices remained subdued, domestic crushing unit face negative parity. Thus, domestic mills focus on import of refined oil for blending and repacking directly in local units instead of crushing of locally originated seeds and concentrate on trading business rather than manufacturing of oil and its derivatives - oilmeals.

The scenario has changed due to bumper soybean output in the world's three major producing countries including Argentina, Brazil and United States. Consequently, countries like China have started importing soybean from all over to process locally. This has reduced China's dependence on imported oilmeals.

Meanwhile, Iran, the largest importer of Indian oilmeals until 2013-14, was facing global economic sanctions which prompted the Islamic country to turn to India for its bird/animal feed requirement. Since the economic sanctions have been lifted by the Western powers, Iran has almost stopped import of oilmeals from India now. Iran currently meets over a million tonnes of its oilmeals requirement from cheaper alternative sources including United States, Argentina and Brazil. Meals supply from these countries stands $100-150 lower than that from India.

Similarly, Japan used to import around half a million tonnes of oilmeals from India until three - four years ago, has now started importing oilmeals extracted from genetically modified (GM) seeds. Since, India produces meals from non-GM seeds, its extraction works out costlier than GM.

"Therefore, the government needs to change its policy for oilseeds and allow sowing of GM. Import of GM seeds should also be allowed for crushing locally. Otherwise, India's exports of meals would come to standstill," said Kanubhai Thakkar, Managing Director, Gokul Refoils and Solvent Ltd (producer of Gokul brand oils).

Import of oilseeds in India is currently non-remunerative due to levy 30 per cent tax. Also, import of GM oilseeds is not allowed in India.

"GM seeds fetch at least three times more output. Allowing GM plantings in oilseeds would not only bring higher output for farmers but also make cost of oil and oilmeal productions lower as farmers would be able to sell their seed output at lower than MSP in case markets turns unfavourable," said Thakkar.

 

Source:business-standard.

India May Halt Diesel Imports, Deal With Private Refiners: Sources

NEW DELHI: India .s state refiners may halt diesel imports after working out a temporary mechanism to resume buying the fuel from private processors if global diesel prices remain at current levels, two refinery sources said.

State refiners stepped up imports in recent months after private refiners refused to continue absorbing sales tax and coastal freight costs, making the domestic fuel more expensive.

Indian imports were a factor behind the stronger Asian gasoil crack, which has been holding near $12 a barrel for the fifth straight session on Monday, after almost doubling to $11.74 on June 2 from this year's low on April 6.

Under the latest arrangement, private refiners will pay the central sales tax and state-run marketing firms will pay coastal freight costs for interstate cargoes shipped from plants in western Gujarat state, the sources said.

India's diesel use is rising along with an economy that grew by 7.6 percent in the financial year to March 31. In the last fiscal year India's diesel demand grew 7.5 percent, its fastest pace in four years.

To meet this soaring demand, the three state-owned firms last year bought some 12 million tonnes of diesel from the private oil processors.

 State-owned Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp sell the bulk of diesel consumed in India.

Diesel is used as a transport fuel but also for power generators and in irrigation systems and heavy equipment, including those for farming.

The approaching Monsoon in parts of India could reduce the need for power generators as the weather cools.

 

Source:economictimes.indiatimes.com

Copper Majors Demand Abolition Of Import Duty

NEW DELHI: Indian copper majors have demanded abolition of duty on imported raw material and restoration of export duty incentives as their capacities lie underutilised.

Hindalco Industries BSE 2.29 %, Hindustan Copper BSE 0.00 % and Vedanta have asked the government to remove the current import duty of 2.5% on copper concentrate.

"The industry is dependent on imports as only 4% reserves are available in India whose rights vest with state-owned Hindustan Copper Ltd, while rest 96% is imported, Hindalco Group Executive President, Head (Copper Business) JC Laddha said.

The mines ministry has recommended to the revenue department to abolish the duty, Mines Secretary Balvinder Singh told ET.

The three companies have a combined annual capacity to produce one million tonnes. The capacities are underutilised by about 22% as copper imports from Japan and Asean firms have increased, he said.

India's consumption of copper is at 6.25 lakh tonne while imports are around 4 lakh tonne. India's Free Trade Agreements (FTAs) with Japan and Asean countries allow imports of finished products at lesser duty, giving rise to an inverted duty structure. The inverted duty structure incentivises imports of finished goods rather than imports of raw material for local manufacturing, Sterlite Copper Chief Executive Officer P Ramnath said.

 

 

Source :economictimes.indiatimes.com

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