Bangladesh Rice Farmers Face Double Whammy With Lower Prices And Higher Supplies

Bangladesh rice farmers are not happy despite the country achieving record 34.708 million tons production (milled basis) in FY 2014-15 (July - June) due to prevailing low prices, according to local sources.

They are the current prices are not even sufficient to cover their production costs. Most of the farmers are receiving Tk 460 per 40 kilograms (around $145 per ton) for hybrid and high-yielding varieties, about 20% lesser than the production costs.

Farmers have been complaining of lower prices since April this year due to increased local production and higher imports from India. The country reportedly imported about 1.45 million tons of rice during FY 2014-15, about four times more higher than in 2013-14, despite a record production due to prevailing low global rice prices, according to the Ministry of Food. They told local sources that the total availability of rice has crossed the local consumption demand of around 3 million tons and has put a downward pressure on prices.

Also farmers and traders are mainly concerned that increased imports have lowered demand for local rice further pushing down the prices. Average price of coarse rice currently stands at around Tk 30-34 per kilogram (around $377-$428 per ton), compared to around Tk 32-37 per kilogram (around $402-$465 per ton) in April this year and around Tk 35-38 per kilogram (around $440-$477 per ton) during the same time last year, according to data from Trading Corporation of Bangladesh.

They noted that the imposition of 10% duty on rice imports did not provide the desired effect as the Indian suppliers lowered their rates. They are expecting the current floods that are affecting some rice growing areas to push up the prices to some extent.

Floods that are a result of heavy rains have damaged more that 260,000 hectares of Aman crop land, local sources quoted the Department of Agricultural Extension (DAE). Farmers are reportedly encouraged to grow flood-tolerant rice varieties such as BRRI dhan51, BRRI dhan52, BINA dhan11 and BINA dhan12 to ensure that the production is not impacted.

USDA estimates Bangladesh’s MY 2015-16 (July 2015 – June 2016) milled rice production at around 35 million tons, slightly up from an estimated 34.5 million tons in MY 2014-15. It estimates Bangladesh to import around 1.2 million tons of rice in 2015.   

Source:- Oryza.com

 

Imported Pulses To Arrive In India From Sept. 23

At the second meeting of the Inter Ministerial Committee on Prices and Availability of essential food items here on Monday and it was appraised that 2500 MT of the imported Tur will arrive in three tranches at Chennai Port and similar quantity of around 2500 MT of Tur will arrive in four tranches beginning from 23rd September, 2015.

The entire consignment of 5000 MT of Tur would be received at the two Ports by 20th October, 2015. To further improve the availability, import of additional 5000 MT of Tur has also been approved. MMTC has already floated a tender of procurement of Tur on 11th September, 2015 with the bid opening date of 21st September, 2015.

With respect to Urad MMTC indicated that 5000 MT of Urad from Myanmar will be received at the Chennai and JNPT. Both the port will received around 2500 MT each by 20th October, 2015.

As regards imports of Onion MMTC informed that about 1000 MT is expected by 1st week of October, 2015 and another 1000 MT by 2nd & 3rd week of October, 2015 at JNPT, Mumbai. As directed by Union Minister for Consumer Affairs and Public Distribution in the review meeting held on 10th September, 2015 MMTC have also floated a tender for import of 1000 MT of onion on 11th September, 2015 and the bid would be opened on 18th September, 2015.

These imports are expected to improve the availability of pulses and onion and moderate their prices.

Source:business-standard.com

Depreciation includes depletion of natural resources; deductible for computing book

IT : Where voting power of assessee company had been unconditionally acquired by company in which public is substantially interested, assessee company would become a company in which public was substantially interested; assessee-company's claim of brought forward losses would be allowed under section 79

India To Impose Uniform Import Duty On Some Steel As Imports Surge

India will soon impose a 20 percent import tax on some hot-rolled steel products for 200 days, two sources said on Monday, as the government investigates a threat to domestic companies from rising supplies from China, Japan, South Korea and Russia.

The products together accounted for more than half of the 5.5 million tonnes of steel imported last fiscal year into India, the world's only major growing market at a time when top consumer and seller China is slowing.

Struggling to compete due to higher borrowing and raw material costs, Indian steel companies had successfully lobbied to get duties on some products raised to 12.5 percent and quality checks strengthened in recent months.

But the duties did not apply to Japan and South Korea, countries with which India has free trade agreements, prompting the companies to seek a safeguard duty that applies to all.

An Indian steel company executive, who declined to be named, said the so-called safeguard duty would not completely halt imports of the products but prevent foreign suppliers from "predatory pricing" when local production is rising.

Acting on a complaint from Steel Authority of India (SAIL), JSW Steel and Essar Steel, the Directorate General of Safeguards said last week any delay in implementing the duty would cause such damage to the local industry that would be "difficult to repair". (bit.ly/1Oa7c7e)

The government has accepted its recommendation and a notification on a temporary duty for hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more would come out soon, said the sources aware of the matter but who are not authorised to talk to the media.

News agency NewsRise quoted two senior finance ministry officials to say a duty may be announced as early as Monday. Reports of the duty pushed up shares of SAIL, JSW, Tata Steel, Jindal Steel and Power and Bhushan Steel.

Imports made up 5 percent of the country's total production of the under-investigation steel products in the year to end-March 31, 2014. But they have increased since then and are on course to hit 13 percent this fiscal year, or 3.4 million tonnes, according to the companies that sought the duty.

Source:in.reuters.com

Government To Resurrect Country's Dormant Gold Mining Industry

The ministry of mines has planned to resurrect India's dormant gold mining industry. "We're going to auction threefour gold mines in Karnataka, Madhya Pradesh and Rajasthan in two-three months. With amendment of the Mines and Minerals Development and Regulation (MMDR) Act, we are pursuing with the states to move ahead with these auctions," Union Mines Secretary Balvinder Kumar told Mail Today.

India is the world's leading importer and consumer of gold but policy handicaps and inadequate investments and technology mean vast gold ore reserves have largely remained unexplored. For example, despite geological similarity with India, Australia mines 280 tonnes of gold a year. An increase in gold production will cut India's rising gold import bill and boost economy.

"Gold mining in India is negligible. Kolar Gold Fields was our main project but that's been defunct for 14 years now. We're trying to revive it, but the idea also is to tap unexplored sites," Kumar said.

India's gold production dropped 8 per cent to 1.43 tonne in 2014-15 compared to 1.56 tonne in 2013-14 financial year. Gold production from Hutti Gold Mines Co. in Karnataka and Manmohan Industries in Jharkhand was 1.43 tonne in 2014-15 as against 1.56 tonne. In 2014-14, gold import stood at 782 tonnes, while for 2013-14 it was 661.71 tonnes.

Steps such as second-phase mine construction at Hutti gold mines have been taken for increasing the production of metal. At the Hira-Buddini and Uti gold mine, the second phase of mining by shaft sinking and mine development is in process.

Overall, the 12 mineral producing states will put 82 mining blocks containing various minerals for auctioning by October-November this year, Kumar said. The entire process will take 2-3 months.

Source:indiatoday.intoday.in

Rupee Trading Strong At 66.31 On Fresh Dollar Selling, Positive Economic Data

The rupee was trading strong at 66.31 against the dollar in the evening session on fresh dollar selling by banks and exporters amid positive economic data.

Forex dealers said that besides dollar selling, a firm domestic equity market and weakness of the dollar against other currencies supported the rupee.

The dollar inched lower with investors sticking to the sidelines as the countdown begins on whether the Federal Reserve will hike interest rates for the first time in nearly a decade.

The euro edged up 0.1 per cent to $1.1350, holding on to last week's 1.8 percent gain. The dollar eased 0.1 per cent to 120.42 yen.

Against a basket of six major currencies, the dollar eased 0.1 per cent to 95.067. The rupee opened strong by 14 paise to 66.40 against the dollar in early trade at the Interbank Foreign Exchange market today.

It further strengthened to 66.30 before being quoted at 66.31 at 4.10 pm local time. The domestic currency moved in a range of 66.49 and 66.30 in the evening trade.

On Friday, the rupee had lost 11 paise at 66.54 against the US dollar on sustained demand for the American currency from banks and importers amid a higher greenback overseas. Meanwhile, the benchmark BSE Sensex ended higher by 246.49 points or 0.96 per cent at 25,856.70.

Source:thehindubusinessline.com

No sales tax on oil products sold to distributors, as Oil Co. hadn't purchased substantial part from

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Credit availed as a service provider can be used to pay excise duty payable as manufacturer

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CST & VAT : Assam VAT - Where assessee purchased oil products from two oil companies after payment of tax and sold same to dealers in Assam and collected taxes from them, since oil companies were not specified oil companies at that time and goods were not exempted goods, levy of penalty was bad in law

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Sec. 54F benefit available on investment in house within 3 years of transfer even if house is regist

IT: Whether where investment in construction of new building is made within three years of sale of property, benefit of section 54 is to be given; question of registration of document does not arise

CESTAT, Allahabad shall begin hearing of cases w.e.f. Oct 10, 2015

EXCISE : Statuts Of Appeals/Applications Arising From Territories Of State Of Uttar Pradesh Listed On Board From 1-9-2015

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EXCISE : Finance Act, 1994 – Clarification Regarding Provisions Of Sections 73, 76 And 78 Of The Finance Act, 1994 And Section 11c Of The Central Excise Act, 1944 After Amendments Made By Finance Act, 2015

Registration fee to file appeal at CESTAT, Allahabad shall be paid in name of Asst. Registrar, CESTA

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Director's plea to discharge her from alleged violation of CIS norms rejected as she could prove inn

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ITAT directs AO to rework ALP as it wasn't clear whether assessee was testing chips or developing so

IT/ILT : Where it was not apparent from records as to whether assessee was engaged in software development or simply testing of chips manufactured by its parent company abroad, matter relating to determination of ALP was to be remanded back for disposal afresh