Duty On Rice Imports Fails To Cheer Farmers Despite Increase In Boro Paddy Prices, Say Experts

Bangladesh rice farmers are expressing concern that the imposition of import duty of 10% on rice imports has increased Boro (January - May) paddy prices by about 20% since its imposition last week but the increase has not benefited them apparently, according to local sources. Paddy prices are said to have increased to around Tk 600 - Tk 650 per 40 kilograms (around $193 - $209 per ton) from last week's Tk 500 - Tk 550 per 40 kilograms (around $161 - $177 per ton)

Local sources say most of the farmers had sold their output from the ongoing Boro harvest season even before the duty imposition and are now not left with any stocks to take advantage of the increased prices. Moreover, the prices are below the average production costs of around Tk 800 per 40 kilograms (around $260 per ton), say farmers.

They say the government's decision will only benefit big millers who have stocked enough paddy from the ongoing Boro harvest.

Some rice experts in the country told local sources that domestic paddy and rice prices had declined sharply before the Boro harvest due to higher imports, especially from India, despite sufficient production in the country. According to Food Ministry data, Bangladesh's private rice traders have imported around 1.36 million tons of rice from July 1, 2014 - May 7, 2015, compared to only 374,560 tons imported in the whole of 2013-14.

Absence of import duty on rice was said to be the main reason for a surge in imports. Therefore the government had imposed a duty of 10% on rice imports, with effect from May 10, 2015.

Millers and traders also expressed concern that the government's imposition of duty had led to a sharp decline in rice prices in India, especially in the eastern states and Andhra Pradesh, which usually export non-aromatic parboiled rice to Bangladesh. The duty hike may not protect the interests of farmers in this situation, they said. Some experts suggested that the government could either ban imports from India or increase the procurement price.

The government will reportedly procure one million tons of 2015 Boro paddy and 100,000 tons of Boro rice between May 1, 2015 and August 31, 2015. It has fixed the procurement price for paddy at Tk 22 per kilogram (around $283 per ton) and that for rice at Tk 32 per kilogram (around $412 per ton).

Source:- oryza.com

‘HR sheets and steel plates’ used for maintenance of ‘storage tanks’ are eligible for input credit

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Mandap Keeper's services related to marriage were liable to service tax

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IT : In case of assessee, engaged in production of engineering related products, expenditure incurred towards procurement of right to use technical know-how by paying a lump sum consideration in course of business was a revenue expenditure falling under section 37 and provisions of section 35AB were not applicable to assessee's case

Seller was in default as he didn't collect TCS at time of sales without obtaining Form 27C from buye

IT : Furnishing of Form No. 27C by buyer at time when collection of tax at source is contemplated under section 206C, has to be construed as mandatory

India Eyes 15% Jump In Medicine Exports This Fiscal

Indian drug makers are hopeful of achieving double digit growth in exports this fiscal after being confined to single digit growth for two years, helped by factors such as several medicines going off patent, strengthening dollar and access to new markets in Asia.

"We hope to achieve 10-15 per cent growth in export of pharmaceutical products during the current fiscal," said PV Appaji, director general at Pharmaceuticals Export Promotion Council (Pharmexcil). This optimism is driven mainly by anticipated increase in the US Food & Drug Administration (FDA) approvals as a large quantum of medicines are going off patent.

"Increased focus of Indian drug makers on complex and high value generics and growing acceptance to our generics in key new markets like Japan and appreciating dollar should also help us achieve the targeted exports," Appaji told ET.

India failed to achieve targeted growth in export of medicines in the last two years. As against the targeted growth of 10 per cent during 2014-15 set by the commerce ministry, the country's pharmaceutical exports saw only 5 per cent growth at Rs 95,000 crore, largely on account of delayed regulatory approvals and price erosion due to increased global competition.

The North American market, which accounts for nearly a third of the country's pharmaceutical exports, proved a drag on revenues of several domestic drug makers, owing to slower product approvals in the US and piled up applications before USFDA.

Increased scrutiny and import alerts by the global drug regulators on facilities and products of Indian drug makers over the last couple of years, too, had adversely affected exports and profitability of several large medicine manufacturers, Appaji said.

Currency devaluations and geopolitical uncertainties in certain countries like Russia, Ukraine, Venezuela and Brazil also contributed to lower than anticipated exports.

Things are expected to improve this year. Large Indian drug makers such as Dr Reddy's Laboratories, Lupin, Sun Pharma, Glenmark and Aurobindo Pharma have lined up several complex generics for launch and are waiting for global regulatory approvals.

Many of them expect double-digit growth in sales this fiscal, anticipating quicker approvals.

GV Prasad, co-chairman and chief executive officer at Dr Reddy's, said India's second largest drug maker is targeting double digit growth this year. "Europe started to turn around and it is profitable now due to new launches. We are looking at working with a partner to enter in to the lucrative, however difficult, Japanese market," he said. The Hyderabad-headquartered company's chief operating officer Abhijit Mukherjee said the company was expecting increased ANDA approvals this fiscal.

Dr Reddy's, which has clocked $1 billion revenue from the US market alone, has 68 ANDAs pending for approval before the FDA for months. Analysts tracking the sector project faster regulatory approvals to drug applications under the FDA's new Generic Drug User Fee Act in the place of existing system that took at least 30 months for approvals.

"The target set by India of achieving double digit growth in exports appears to be feasible," said Alok Dalal, pharmaceutical analyst with CLSA.

Nitin Agarwal, analyst with IDFC Securities, expects FDA to review and act on 75 per cent of the ANDA applications within 15 months of submission.

Neha Manpuria, analyst with JP Morgan, in a report released in January had said, "Growth in the US has been affected by the lag in new product launches. While the trend so far has been tepid, any pickup in ANDA approvals would be a key driver for growth in the near term."

Source:economictimes.indiatimes.com
 

Indian Dgft Announces Relaxation On Scrap Metal Import Regulation

India’s Directorate General of Foreign Trade (DGFT) has announced certain relaxations to the earlier announced regulations on scrap metal imports into the country. The revised rule is on the back of concerns raised by several recycling bodies including Institute of Scrap Recycling Industries (ISRI), Bureau of International Recycling (BIR) and the Metal Recycling Association of India (MRAI).

The metal scrap import regulations will come into effect from July 1st. Current pre-shipment inspection certificates are valid only until June 30th, 2015. All existing certifications will go invalid by that time. According to DGFT, pre-shipment inspection agencies need to reapply for certification by an Inter-Ministerial Committee on or before 7th June. The status will be renewed once in every three years, DGFT public notice stated.

As per the stringent scrap import policy announced by Indian authorities in April this year, the Pre-Shipment Inspection Agency (PSIA) in the source country was required to make a video of duration between 3 to 5 minutes covering the inspection process carried out at containers. However, May 18 notice states that photos would be acceptable as an alternative.

The DGFT is believed to have come ahead with the new regulations after scrap shipments into the country were found containing radioactive and explosive materials in it. The Indian administrators stated that the country’s security is their top priority, while admitting that the new rules may lead to lesser scrap imports into India.

Meantime, MRAI has sought for several concessions in the proposed rule. The recycling association has urged to allow self-certification of scrap yards. In addition they also called upon DGFT to exempt shredded scrap from inspection certification requirement.

Source:metal.com

Rupee Opens Higher At 63.74 Per Dollar

The Indian rupee on Thursday strengthened against the dollar, tracking the gains in the local and Asian currencies market. The local unit opened at 63.74 per dollar and touched a high and a low of 63.68 and 63.74, respectively. At 9.07am, the home currency was trading at 63.69, up 0.22% from its previous close of 63.83. The Sensex rose 0.17% or 47.34 points to 27,884.55 points.

The yield on India’s 10-year benchmark bond was trading at 7.847% compared with its Wednesday’s close of 7.858%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 1%, while foreign institutional investors have bought $6.76 billion from local equity and $6.03 billion from bond markets.

Most of the Asian currencies were trading higher. Thai baht was up 0.34%, Malaysian ringgit was up 0.32%, Taiwan dollar was up 0.19%, Japanese yen was up 0.16%, South Korean won was up 0.15%, Philippines peso was up 0.14%, Singapore dollar was up 0.14% and Indonesian rupiah was up 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.396, down 0.05% from its previous close of 95.448.

Federal Reserve officials signalled they are unlikely to raise interest rates in June, while leaving open the option of tightening later in the year, Bloomberg reported.

Minutes of their April meeting released on Wednesday also confirmed that the Fed expects growth to pick up after stalling in the first quarter, even as officials fretted about the strength of consumer spending that makes up two-thirds of the economy, it added.

Source:livemint.com

Tribunal cannot follow discriminatory approach on same issues

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Cash expense incurred by Actor in excess of Rs. 20,000 on travelling, costumes and makeup was allowa

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CIT(A) gets flak from ITAT for holding that assessee didn't have PE in India as per DTAA without giv

IT/ILT: Where Commissioner(Appeals) had dealt with DTAA but had not discussed actual work and nature of job done by assessee nor had he given reasons as to how he arrived at conclusion that provisions of article 5 of DTAA of Indo-Netherland were not applicable, matter required readjudication

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Vendor abused its dominance by forcing appellant to purchase software kit alongwith electronic ticke

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Sum paid to affiliate as per formula provided by Govt. for wind-farm taken on lease couldn't be held

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SEBI allows AMCs to provide management and advisory services to category-1 FPIs

SEBI/INDIAN ACTS & RULES : SEBI (Mutual Funds) (Amendment) Regulations, 2015 – Amendment in Regulation 24