Bridges & Bonds

Groundnut exports might fall 30% this year

2013-02-13T14:50:00.000+05:30

Groundnut exports from India may fall by close to 30 per cent this financial year even as the new export norms set by a central agency is proving to be a deterrent for small processing units and exporters.

The norms set by the Agricultural and Processed Food Products Export Development Authority (Apeda) requires all groundnut processing units to register for export of groundnut and groundnut products. India’s groundnut exports for 2012-13 are estimated to be around 600,000 tonnes against about 850,000 tonnes a year ago.

“What Apeda has done was required for long as the government had received complaints from importing countries about the quality of Indian groundnut. But this year, we expect groundnut exports to dip by around 30 per cent to 600,000 tonnes,” said Rajesh Bheda, chairman, Indian Oilseed and Produce Export Promotion Council (IOPEPC), a trade body recognised by the Union ministry of commerce.

Apeda has made it mandatory for groundnut processors to register with IOPEPC before March 31. IOPEPC will then submit the data to Apeda’s online software, peanut.net.

“Exporters shall ensure that all peanuts and peanut products (PPP) units from whom they source the produce have made their data available to IOPEPC for submission to Peanut.net by March 31 since Customs would only accept Certificate of Export through Peanut.net from April 1, as advised by Apeda to them,” Apeda stated in its directions.

Most groundnut processing units are located in Gujarat, Rajasthan, Andhra Pradesh and Karnataka. While most processing units have lesser capacities, many of them have objected to the Apeda directions fearing, increase in cost and loss of business to the larger players.

Groundnut shelling units in Gujarat have formed the Gujarat Oilseeds Processors Association (GOPA) to oppose new rules for groundnut export.

“Groundnut export from India has increased from 300,000 tonnes to 850,000 tonnes in the last three years. Countries like China, Indonesia and the Philippines are already buying from India. At a time when we are growing, the new rules will destroy the small shelling units,” said said Mukund Shah, president of GOPA.

According to IOPEPC, a large number of small groundnut processing units can take the benefit of subsidy, which is available under Apeda’s scheme for certification.

According to data provided by the Directorate General of Foreign Trade, India’s groundnut (shelled) exports stood at around 821,000 tonnes for 2011-12, while in 2012-13 (till September) the exports stood at 330,141 tonnes.

India’s exports had surged sharply in 2011-12 from the past five-year average of around 400,000 tonnes, because of a crop failure in groundnut producing countries such as China and Argentina. “This year, there is not much favourable to India as crop is good in the US and Argentina. Also, the prices are much less than the Indian prices. This will also affect Indian exports,” said Bheda of IOPEPC.

Source:-www.business-standard.com

Export Ban - Move comes in the wake of deficient rainfall

2013-01-25T15:36:00.000+05:30

As contingent measures to deal with the deficient rainfall, the Centre on Friday said it will stop all exports of non-Basmati rice and wheat, and bear half of the subsidy on diesel offered to farmers by the states.

The decisions were announced by Food and Agriculture Minister Sharad Pawar in the Rajya Sabha, a day after Prime Minister Manmohan Singh and his Cabinet colleagues were briefed on the monsoon situation and Kharif sowing on Thursday. “We have already stopped the export of non-Basmati rice through the diplomatic channel (meant for humanitarian aid). We will soon stop export of two million tonnes of wheat through the same channel,” he said, responding to a debate on deficient monsoon and agriculture contingencies.

He assured the House that the government had rice and wheat stocks for 13 months in its kitty. On the soaring price of pulses, he hinted at the possibility of import of certain pulses which would be distributed through the public distribution system. Pulses are grown in the rain-fed areas of Madhya Pradesh, Maharashtra, Karnataka and Andhra Pradesh, which did not receive adequate rain, creating a worrisome situation, he said.

On the tur dal price crossing Rs 100 a kg, Pawar said it might be a temporary phenomenon which could be managed if the monsoon situation improved. But the demand-supply gap may be met through import.

On paddy cultivation, he said “substantial” shortfall had been witnessed in Bihar, east Uttar Pradesh and west Uttar Pradesh. But Punjab and Haryana were not a problem as the farmers had sustained the transplanted crop with irrigated water. Pawar said while 100 MWe of additional power from the Central pool was released to the farmers in Punjab and Haryana, the Centre had agreed to release another 100 MWe for the next 15 days. The Centre has agreed to share half of the financial burden of the Bihar government that had announced a diesel subsidy for the farmers, he said.

As much as 15 lakh quintals of additional seeds have been made available to support the alternative plans.

Source: Deccan Herald

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2013-01-24T13:37:00.005+05:30

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China may increase their Rice imports from India

2013-01-16T16:35:00.001+05:30

China may enhance rice import from India in coming years in the wake of rise in cost of farm production, an expert said today.

"China's total rice import was 2-3 million tonnes from Vietnam and India last year. I can't say how much rice has been imported from India but definitely some quantity has been imported for the first time after a gap of many years," US- based International Food Policy Research Institute (IFPRI) Director General Shenggen Fan said at an event here.

India emerged as the world's largest rice exporter in 2012 beating its Asian counterpart Thailand with shipment of around 10 million tonnes.

"It is just a beginning and China's rice import from India could enhance in the coming years with cost of labour, water and land increasing. Also, it is cheaper to import foodgrains from India instead of providing subsidies to farmers," he said.

As far as wheat is concerned, the country is buying largely from the US, Canada and Australia and not from India. "However, there is scope for import as India has a massive stocks of rice and wheat," he said on the sidelines of a function here.

India has sufficient rice and wheat stocks due to bumper production. Last year, rice and wheat output was at record 104.32 million tonnes and 93.90 million tonnes, respectively.

On poverty level in Asian countries like India and China, Fan said, "The region as a whole is not on track in meeting the millennium development goal (MDG) of cutting the rate of undernourishment by half between 1990 and 2015."

Only in the southeastern Asia, the trend is on the MDG target, he said, adding that food and nutrition insecurity continues to be an important challenge in Asia.

"India accounts for some 217 million or a quarter of all undernourished people globally. As a result, India is likely to miss the MDG target," he said.

Innovations in agri-technologies, institutions and policy are to be improved to address the challenges of food and nutritional insecurity in Asia, he added.

Emphasizing that investment in agri-research have substantially reduced rural poverty by stimulating farm growth and reducing food prices, Fan said: "The research finding shows that for every rupee invested in agri-research in India, Rs 13.5 is returned.

"Therefore, Indian government should increase investment in agriculture, rural infrastructure and education as these have high payoffs in terms of raising smallholder farmers' productivity and incomes," he added.

Doubling investment in agriculture research and output maximizing scenario results in 261 million people moving out of poverty globally by 2025, IFPRI observed.

Source: Economic Times

India's exports to Iran up 17 per cent in April-June 2012:

2013-01-11T16:36:00.001+05:30

India's exports to sanction-hit Iran grew by 7 per cent year-on-year to $705.8 million during the April-June period of the current fiscal year, Assocham today said.

The country's exports to Iran during April-June 2011 stood at $605.3 million.

"The exports to Iraq, another hot spot in the Middle-East, saw a big jump, bucking the overall trend of decline in Indian exports," it said. India's exports to Iran comprise agri items like basmati rice, tea, sugar and soyabean.

The chamber also said that India has reduced its oil imports from Iran due to the US pressure. Iran is India's second largest oil supplier after Saudi Arabia.

India's overall imports from the key Middle East country declined by about 25 per cent to $2.71 billion during the first quarter of this fiscal year from $3.6 billion in the same period last year.

"The crude oil import was the largest item of imports from Iran. As the country faced the US pressure and the payment system for Iranian crude was disturbed, India's imports from that country had to drop sharply," Assocham said.

The country's overall imports in the first half of the current fiscal year were down by 3.6 per cent to $234.8 billion.

It said that India has exported several food items like wheat to Iran which has been hit hard by the sanctions from UN, the US and Europe against its disputed nuclear programme.

Further, the chamber said that India's exports to Iraq jumped to $334.5 million during the April-June quarter from $132.8 million in the same period of 2011-12.

"Although the situation in Iraq is not similar to Iran", India's imports from Iraq also declined by 16.6 per cent to $4.6 billion during the period from $5.5 billion in April-June 2011, it added.
Among the Organization of the Petroleum Exporting Countries (OPEC) countries, the share of Indonesia, Kuwait and Saudi Arabia in India's imports increased significantly.

In contrast, the share of Iran in India's total imports declined to 2.4 per cent during April-June 2012 from 3 per cent in the same period previous year. Similarly, the share of Iraq in the country's total imports declined to 4 per cent from 4.5 per cent in Q1 of 2011-12.

"Irrespective of the pressure from the west, India needs to pursue its economic ties with Iran and other important countries in the Middle-East," Assocham president Rajkumar N Dhoot said in a statement.

"We will continue to build bridges between the businesses of the countries," Mr Dhoot said.

Source:-profit.ndtv.com

Grapes' export, groundnuts' shipping will now require Apeda's registration

2013-01-07T14:26:00.001+05:30

The government has tightened the export norms for grapes and groundnuts wherein the export of grapes to the European Union (EU) and shipping of groundnuts to world markets will now require registration from the Agricultural and Processed Food Products Export Development Authority (APEDA), as per the information revealed by the Commerce Ministry.

However, export of groundnuts and its products to Russia will not require such registration.

“Export of groundnuts and its products to all countries except Russia would require registration from Apeda along with controlled aflatoxin level certificate by the recognised laboratories,” as per the notification issued by the Directorate General of Foreign Trade (DGFT).

So far, compulsory registration of contracts with Apeda, along with controlled aflatoxin level certificate, was required only for exports to EU.

As per the notification, the export of groundnuts and its products to Russia would continue to be on the basis of pre-shipment certificate by notified laboratories.

Besides, DGFT said, “Export of grapes to EU would require registration from Apeda.”

The European authorities have rejected several consignments of grapes due to the presence of a chemical residue. Chloromacvat chemical is used as preservative to keep the fruit fresh.

The major exporters of grapes are Maharashtra, Andhra Pradesh and Karnataka. Grapes are harvested during February-April.

Source: India mart news.

Exports to US, Europe, China eligible to fetch govt incentives

2013-01-02T13:56:00.000+05:30

From 1st Jan 2013, exports to conventional markets such as US and Europe will be eligible to fetch government incentives.

Concerned over the shrinkage of Indian exports during the first eight months of the current fiscal, the government has notified a scheme whereby an exporter is entitled to get an incentive even if exports are meant for US, Europe or China, three key destinations of Indian exports.

Earlier, incentives were meant for exports to new markets like Central Asia and Latin America.

Under this performance-oriented scheme titled Incremental Exports Incentivisation Scheme, exporters will get duty credit scrip at 2% on incremental growth of exports to be achieved during January-March quarter of 2012-13 over the same period last fiscal.

But exporters will be eligible only if they export more in value terms during the current financial year in comparison to that of the last fiscal.

While talking to ET, Director General of Foreign Trade Dr Anup K Pujari said the scheme should drive the exporters to work hard and achieve more.

"We want exporters to work harder during this quarter and show results. The scheme will cover exports to USA, Europe and Asian countries. But exports to Singapore, UAE and Hong Kong will not be eligible as those are mere trans-shipment hubs," Pujari said.

He further added that this scheme would be over and above other existing schemes. "We want to reward the performing exporters rather than distributing sops among all," he added.

The scheme, however, will not include exports from SEZs, service exports, and exports of select goods like diamond, gold, silver, platinum, cereals, milk, sugar etc.

The total Indian exports between April and October in 2012-13 was $169 billion, down 6% over the corresponding period of the last fiscal.

Source: The Economic Times

India Develops New Pusa Basmati Rice Variety

2012-12-28T10:42:00.000+05:30

Indian scientists have developed a new basmati (fragrant) rice variety in the Pusa line that has yields of around 6.5 tons per hectare, up about 44% from 4.5 tons per hectare yield of the popular Pusa 1121 variety.

The new variety, Pusa Basmati 1509, developed by scientists at the Indian Agricultural Research Institute (IARI), will be the second basmati rice variety introduced since the release of Pusa 1121. According to scientists, the new variety takes just 120 days to mature; compared to Pusa 1121’s 145 days, requires less water and has better cooking quality than Pusa 1121, claim scientists. Importantly, unlike Pusa 1121, Pusa 1509 does not shatter due to delay in harvesting.

The field trials of Pusa Basmati 1509 were carried out in October this year and the commercial cultivation is expected to commence in the next Kharif season (July to October), according to IARI.

The Pusa 1121 basmati rice variety was released for commercial cultivation by Indian scientists in 2003. Pusa 1121 is known for its extraordinary length of up to 9.5 mm and unique fragrance, and has since become hugely popular both among farmers and exporters. Today, the Pusa 1121 accounts for almost 60% of around 2.6 million hectares of total acreage under basmati rice cultivation in India, and about 70% of around 3.2 million tons of basmati rice exports.

Source: http://oryza.com

Export buying lends flavour to jeera

2012-12-21T13:30:00.001+05:30

Jeera prices on futures market improved on fresh export inquiries, though spot jeera was stable.

According to market sources, upcountry and Bangladesh demand continued.

Trading activities are slow due to announcement of results to the Gujarat Assembly Elections.

A trader said that fresh inquiries are coming from Bangladesh for the Indian origin jeera.

Export demand should rise in the coming days as supplies from Syria and Turkey are negligible in the global market.

According to markets sources, about 75 per cent of the export target has been achieved due to a supply crunch in the global markets.

Higher stocks for delivery on the exchange warehouses may pressurize prices.

Source:-www.thehindubusinessline.com

Indo-Asean trade could touch $100 billion by 2015

2012-12-20T14:36:00.001+05:30

The two way trade between India and the ten member ASEAN block could touch USD 100 billion by 2015 on the back of increasing economic engagement between the regions.

Currently, the trade between India and Association of South East Asian Nations (ASEAN) stood at USD 80 billion.

"We are aiming that the trade between the two sides will touch USD 100 billion by 2015," Commerce and Industry Minister Anand Sharma said while inaugurating 2nd India-ASEAN business fair here today.

India and ASEAN, which have already implemented free trade agreement in goods, are expected to conclude the negotiations for the free trade pact in services and investment this week.

Speaking on the occasion, Cambodian Commerce Minister Cham Prasidh said that: "We may be able to give you a good news tomorrow".

He also expressed hope that negotiations for the Regional Cooperations and Economic Partnership (RCEP) is likely to be concluded by 2015.

Trade ministers of all the ten ASEAN nations were present during the occasion.

Srirat Rastapana, Thailand's Director General of Department of International Trade Promotion said the ongoing talks between India and Thailand for the market opening pact may be concluded by next month.

"We are at the last leg of negotiations. We started with early harvest scheme (EHS). FTA will help to drive economic relationship bilaterally," he said.

Besides, the free trade pact with ASEAN, India is negotiating market opening pact bilaterally with the members of the block.

India has already implemented FTA with Singapore and Malaysia and is negotiating with Indonesia in this regard.

SOURCE: THE ECONOMIC TIMES

Maize price in India by around 12%

2012-12-18T14:53:00.000+05:30

Around 12 per cent increase has been seen in maize prices in India on the back of demand rise for Indian maize in export market. In the domestic market, maize prices have risen to around Rs 1,500 per quintal from Rs 1,350 last month.

The demand for Indian maize is on spurt in global markets as supply from Brazil has lagged temporarily due to port congestion.

The deficit rainfall has impacted acreage and yield in the current year, which will affect supply.

Prices are likely to remain high, unless Rabi output offsets some of the loss in production in Kharif season to support domestic demand till next year.

According to the first advance estimates for the running fiscal (2012-13), Kharif maize area this season stood at 73.68 lakh hectares compared to 73.88 lakh hectares last year.

Kharif maize production is estimated at 14.8 million tonnes, lower by 8 per cent from the previous year.

Maize is sown in both Kharif and Rabi seasons; with the Kharif season output comprising 75 per cent of the total production.

Source: Indiamart

Govt will continue with free export policy for rice, wheat, cotton: Anand Sharma

2012-12-17T11:40:00.002+05:30

NEW DELHI: The Central government will continue with the free export policy for rice, wheat and cotton this year, as announced by Union Commerce Minister Anand Sharma.

In September last year, the ban on export of non-basmati rice and wheat was lifted and exports were put on open general licence (OGL) due to bumper food grains production in the country.

While addressing the All India Kisan Coordination Committee (AIKCC), Sharma said, “Due to higher production, the government has allowed export of rice, wheat and cotton. This will continue as we have enough supply.”

The stable farm export policy is essential to ensure better income to farmers and the same has been communicated to Prime Minister Manmohan Singh.

So far, the country has exported 10 million tonne non-basmati rice and over 3 million tonne wheat through private trade.

Further, the minister said that the Indian wheat is dominating in the world market this year. An expected crop failure in the US and Ukraine has generated huge demand for India wheat and traders are fetching good price up to $ 328 a tonne.

Source:India Mart

India's wheat exports may touch record 5 million ton mark

2012-12-13T11:56:00.006+05:30

India's wheat exports are pegged to touch a record level of 5 million tons in the 2012-13 marketing season on the back of all time high harvest and large carryover stocks, United Nation's body FAO said.

"In India, given the estimated bumper wheat harvest and larger carryover stocks, exports are anticipated to reach a record level of 5 million tons in 2012-13," Food and Agriculture Organisation (FAO) said in its latest Crop Prospects and Food Situation report.

Wheat marketing year in India commences in April and ends in March.

"Weather conditions at the start of the 2012-13 season have been generally favourable for planting of winter wheat, barley and secondary rice crop. In India, early official forecast for the 2013 wheat crop is set at a near average level of about 86 million tonnes," the report added.

The government has kept a target of 86 million tonnes of wheat in the 2012-13 rabi (winter) season. The country had harvested a record 93.90 million tonnes in 2011-12 crop year (July-June) due to good rains.

That apart, the government has a wheat stock of 37.65 million tons as of Dec 1, 2012, which is above the stipulated buffer and strategic stock requirement of 11.2 million tons as of January 1, 2013.

In July this year, the government had allowed export of 2 million tons of wheat from central pool stocks of Food Corporation of India (FCI) through central public sector undertakings (CPSUs) like STC, MMTCBSE 1.22 % and PEC.

Tenders for export of 1.73 million tons of wheat has been approved, out of which 8.06 lakh tons has been shipped.

Yesterday, Commerce Secretary S R Rao said that the Food Ministry will move a proposal for allowing export of an additional 2.5 million tons of wheat from the central stocks in order to ease the storage crunch being faced by the country due to an all time high production.

Source: Economic Times

Iran's new Currency exchange regulations hits Indian Exporters

2012-12-11T17:19:00.000+05:30

Indian exporters are having a tough time exporting to the Islamic republic caused due to the new exchange rate strategy adopted by Iran for importers.

Iran is passing through an acute economic crisis, with its currency plunging to record low levels and prices of food articles escalating. Iran's currency, the rial, has fallen by about 40 per cent against the dollar since August.

As a result, Iranian banks have become extremely reluctant to issue letters of credit (LC) for importers, a crucial link to the newly-established payment mechanism between India and Iran.

According to Indian exporters, Iranian banks have been seeking up to 100 per cent margin money for issuing LCs to their importers, which have shrunk the order book of Indian exporters.

Iranian banks have been especially reluctant to issue LCs for import of non-essential commodities, which have hit exports in sectors such as engineering goods from India.

"Since Iran is going through an exchange crisis, importers of priority sector goods like medicine and pharmaceutical products are getting LCs. However, for other sectors, it is difficult to get LCs," said Suranjan Gupta, director, EEPC India.

"We are not getting sufficient buyers in Iran for exports, as due to the currency crisis, banks in Iran are very reluctant to issue LCs," said P K Shah, former president, Federation of Indian Export Organisation.

Source: Business Standard

INDIA RICE PROCUREMENT SOARS, MANY REGIONS UNTOUCHED

2012-12-10T11:01:00.000+05:30

India’s state agencies and Food Corporation of India (FCI) have together procured around 12.52 million ton of rice in the 2012-13 procurement season that started from October till Dec 05, almost 5.9% more than the same period last year.

However, the data showed that procurement has not started in Bihar, Jharkhand, Orissa and West Bengal, all big rice producing states.

Leaders of major political parties raised the issue of low procurement of rice in eastern India, one of the major producing regions, in Parliament.

The government assured that a team would be sent to assess the situation and take corrective action. Overall, of the 22.45 million ton of rice that has arrived in the markets across the country, almost 18.22 million tons have been procured by the government.

India annually procures around 35-38 million ton of rice for the central pool to distribute it at cheap rates for the Public Distribution System (PDS). In 2012-2013, the government has targeted to procure around 40.1 million ton of rice for the central pool, around 15% higher than the actual procurement of 2011-2012.

As on November 1, 2012, the government has around 68.3 million ton of food grains in the central pool which included wheat and rice, while the storage space available with it was around 71.4 million ton, which also included covered area plinth and storage's with state governments.

Courtesy: Business Standard

India set to be the fastest growing trading nation

2012-12-07T18:07:00.000+05:30

Rising bilateral trade with China, growing consumer wealth and high confidence level among its traders will push India to the top league of trading nations beginning 2013 and it is set to retain the fastest growth rate till 2020, said HSBC.

"The growing Indo-China bilateral trade is set to increase significantly and the country will be the fastest expanding market for Chinese products, with import growth averaging 20 per cent annually during 2013-15 and 17 per cent during 2016-20, while exports clipping at 23 per cent during 2013-15 and 19 per cent during 2016-20," said the HSBC trade forecast released on Tuesday. India tops the tables for all 23 markets surveyed as either their fastest import or export growth partner out to 2020, it said.

The country also tops the HSBC trade confidence index apart from having the most promising global outlook with 61 per cent of traders expecting to see growth. "With a score of 135, India is the most confident country. Optimism has improved in the past six months with 71 per cent of importers and exporters surveyed expecting trade volume to increase and another 24 per cent anticipating business to remain at current levels," said the report that covered 5,800 exporters, importers and traders over the past six months in 23 markets.

This upside to trade will be backed by the growing consumer wealth that will push the country to be the fastest growing trade market - import or export or both - among the 23 largest trading markets, according to the forecast. The optimism comes from a dual speed trade rebound as South-South corridors become more established, driving growth to 2015 before being rejoined by the developed world in the later part of the decade, notes the report.

As per the report, India and China will be joined by emerging trading nations like Vietnam, Indonesia, Egypt, Turkey, Mexico and Poland to record significant trade growth in the next three years.

Courtesy: One India

U.S. Firm to Invest U.S.$210 Million in African Agric Export

2012-12-06T11:29:00.003+05:30

A United States firm, Carlyle Group, is leading a $210 million private equity investment in the procurement and export of agricultural commodities from Africa to Asia, Europe and America.

Other minority investors include Pembani Remgro Infrastructure Fund, a South Africa-based private-equity firm and Standard Chartered Plc, Africa Private Equity division.

The $210 million would be invested into Export Trading Group, a Tanzania-based agricultural company that sources commodities from Africa’s small farmers for export.

Making the announcement in Washington recently, the Managing Director of the Carlyle sub-Saharan Africa Fund, Genevieve Sangudi, disclosed that this was the first investment of its new sub-Saharan Africa Fund.

She revealed that the sub-Saharan Africa Fund, targeted at $500 million, is a reflection of how private-equity firms are trying to position themselves to tap into the continent’s new consumers as well companies that are expanding on the back of demand for food and energy from the rest of the world.

“Competition among global rivals is heating up in Africa, as investment returns diminish in more developed parts of the world,” she said.

Sangudi noted that Africa’s prospects appear more appealing than in the past, largely because it is expanding faster than most regions outside Asia and the Middle East. The continent’s young people are also making their way to the cities and stoking consumer demand.

She disclosed that the Carlyle Group is a global alternative asset manager with more than $156 billion in assets under management across 99 funds and 63 funds of funds vehicles.

The Export Trading Group, which trades 25 different commodities, from cashews to coffee, said that with the injection of $210 million fresh capital coming on the heels of $74 million earlier invested by Standard Chartered it is set to double sales.

The company revealed that it earned $884 million in revenue in the fiscal year ended March 31, and projects that figure will rise to $1.5 billion next year.

Managing Director of Export Trading Group, Ketan Patel, disclosed among other things that the Group expects to use the fresh capital from Carlyle and others to expand transport and distribution networks in Africa to get more farm-grown food onto the continental and global markets, and also acquire more warehouses in Asia, where it buys rice and fertilizer.

In its recent assessment of the continent’s growth, the International Monetary Fund had estimated that sub-Saharan Africa’s economy would expand by 5 per cent this year.

Courtesy: Mask Africa

LIVE RICE INDEX

2012-12-04T15:33:00.000+05:30

INDIA:

Indian white rice prices have softened this week as harvesting of the main (kharif ) crop has progressed well following dry weather, thus increasing availability. IR 64 5% broken is currently listed at US $420 PMT FOB and PR 106 5% broken at US $480 PMT. Demand for Indian white rice remains slow, although unconfirmed reports suggest that China’s COFCO has agreed to buy 100,000 MTS of various qualities of white rice from India.

Indian Basmati exports between April and October 2012 totalled 1.92 million MTS, up 17% on the corresponding period last year as a result of increased demand from traditional buyers in the Middle East and sales to new buyers in Africa. However, sales to India’s third largest Basmati export market, Iran, may soon be reduced as Iran is planning to rework its multiple exchange rate system in order to negotiate the various trade sanctions imposed upon the country.

VIETNAM:

Vietnamese prices are softer again this week, despite supply remaining very tight and exporters still having to fulfill their commitments to Bulog of Indonesia, Bernas of Malaysia and West African Buyers. 5% broken white rice is currently listed at US $430 PMT FOB, whilst 25% broken stands at US $400 PMT FOB. There has been a lot of speculation as to what is causing the prices to soften, although there is certainly less demand from local buyers than there has been in recent months.

Some exporters may also be eager to clear their warehouses due to fears of flooding which could damage their stock and as they begin to prepare their facilities for 2013 crop arrivals (although these are unlikely to begin until February at the earliest).

PAKISTAN:

Pakistani white rice prices have remained stable this week as the market has reopened quietly following the Muharram Ul Haram New Year holidays. IRRI-6 5% broken white rice is unchanged at US $435 PMT FOB. The attention of the market is largely focused on East Africa and China as exporters are hoping for a significant increase in buying when Chinese importers are allocated their next tranche of import licences in January. Purchases of small volumes of 100% broken white rice have continued from West Africa and a single shipment is expected to be loaded from the first week of December.

USA:

The market in the south has been quiet following the Thanksgiving holiday, although domestic demand has continued for small volumes; the Kansas City Commodity Office will tender for 1,450 MTS of U.S. #5, 20% broken white rice and a further 390 MTS of U.S. #2, 7% broken white rice on 4 December. The start of the hunting season has led to a quietening of the market, although mills are booked through to the New Year largely because the 79,000 MTS awarded under the Colombia Tariff Rate Quota is required to be shipped by 31 December. Long grain prices remain unchanged, with U.S. #2, 4% broken at US $620 PMT FOB and U.S. #1, parboiled 4% broken at US $625 PMT FOB. Additional offshore demand has come from the European Union as the first tender of the January 2013 Tariff Rate Quota has been issued, totalling 9,681 MTS of milled rice of U.S. origin.

SOUTH AMERICA:

Prices in South America are softer this week, both Argentine and Uruguayan 5% broken white rice varieties are now quoted at US $630 PMT FOB. Although the Brazilian government continues to attempt to ease the situation by auctioning paddy from its stocks, the significantly smaller crop harvest in the 2011/12 season compared to 2011 could ultimately mean that Brazil becomes a net importer of rice this year. Estimates suggest that Brazil’s total imports for 2012 are likely to reach at least 900,000 MTS which is a 50% increase from the year before.

Courtesy: Live Rice Index.

Indian Govt. approves more exports of Rice & Wheat

2012-12-04T10:55:00.000+05:30

The Cabinet Committee on Economic Affairs has approved the continuation of the unrestricted export of wheat and non-basmati rice.

This is in view of the adequate availability of wheat and non-basmati rice in the domestic market, an official statement said.

The proposal was moved by the Department of Commerce. Sources said additional wheat exports of up to 2.5 million tonnes (MT) would be allowed from the Government’s stocks.

The Government is sitting on a huge pile of wheat stocks pegged at 40.57 MT as of November 1 about thrice the buffer and strategic reserve at this point in time. The Government’s latest move would help fetch better realizations as global wheat prices have firmed up as drought in countries such as Russia, Ukraine, the United States and Australia has slashed output hurting supplies.

The Government had earlier allowed exports of 2 MT from the Central pool stocks, of which over 7.5 lakh tonnes has already been shipped out of the country.

Courtesy: The Hindu Business

Global agricultural commodity prices likely to remain high

2012-12-03T11:13:00.000+05:30

Although global agricultural commodity prices have come off recent peaks, food price inflation remains a concern in developing countries; and over the next ten years, agricultural prices are expected to remain on a higher plateau even as energy price levels and volatility are seen to condition the outlook, according to the latest OECD-FAO Agricultural Outlook 2012-2021.

CEREALS:

As for cereals, stocks are expected to get tighter over time. The stock-to-use ratios will remain below historical averages, posing the risk of future price volatility. Interestingly, the Black Sea region will play a larger role in the world wheat trade. The Russian Federation, Ukraine and Kazakhstan are expected to become much more important sources of wheat export by 2021; but high production variability in this region may have implications for global trade and world price volatility, the report has cautioned.

Larger exports of rice are projected from the least developed countries in Asia while rice imports are to increase in Africa.

OIL SEEDS:

Oil seeds production and exports continue to be dominated by the traditional players, but emerging exporters such as Ukraine and Paraguay are expected to increasingly contribute to global export growth. China, the dominant importer, will account for more than half of total world imports. Brazil’s oil seeds production growth is expected to slow from 4.9 per cent to less than 2.0 per cent over the next ten years. As for sugar, food and fuel (ethanol) demand will sustain over the medium-term and help maintain prices at a high level. Production cycles will continue to characterize sugar markets in Asia, leading to occasional large trade fluctuations and price volatility. A key driver of the sugar market will be how Brazil’s cane crop is allocated between sugar and ethanol.

MEAT:

Meat consumption in developing countries is set to expand. Large Asian economies, crude oil exporting countries and Latin America where income gains are expected to be significant will drive demand for meats. Poultry meat will lead the anticipated growth as the cheapest and most accessible source of meat protein, overtaking pig meat as the largest meat sector by the end of the decade. Aquaculture is set to surpass capture fisheries in food consumption. Fish production is one of the fastest growing sources of animal protein. World fisheries and aquaculture production are expected grow by 15% over the next ten years. A 33% growth in aquaculture production will take it past capture fisheries as the primary source of fish for human consumption by 2018.

DAIRY PRODUCTS:

While developing countries will become most important producers of milk, a modest increase in consumption of dairy products – with the exception of cheese and fresh dairy products - is expected in developed countries. By 2021, the consumption of all dairy products is expected to increase by about 30 per cent in developing countries.

Interestingly again, developing countries under the lead of India and China are projected to overtake developed countries in milk production by 2013.

Courtesy: The Hindu Busines

Iran accused of slapping high import tariffs

2012-11-30T12:52:00.000+05:30

Pakistan has accused Iran of slapping high import tariffs on items from Pakistani origin and frequent changes in import regime, well informed sources told Business Recorder. The sources said Iranian authorities had imposed a ban on issuance of permit to kinnow importers which had adversely affected export of kinnow to Iran from Pakistan, "which is violation of Pak-Iran PTA." The issue of ban on import of fruits from Pakistan may be taken up with Iranian side.

Pakistan's major items of export to Iran include rice ($75.11 million), meat and meat preparations ($23.42 million), fruits & preparations ($11.80 million), agricultural products($6.96 million excluding rice and fruits, mostly live animals eg, cows), non-value-added textiles ($10.80 million).

Major bottlenecks in expansion of Pak-Iran trade include; (i) high import tariffs applied by Iran on items of export interest to Pakistan ;( ii) frequent changes in import regime of Iran; (iii) import authorization system and ;(iv) indirect trade via Dubai; The sources were of the view that "Iran is still not a member of WTO and therefore follows a system of high import duties ranging up to 150% advalorem." PTA signed in 2004, and implemented in 2006, has not contributed to increasing Pakistan's exports due to high statutory import duties. According to sources, the Iranian economy is still closely regulated by the government.

The following are some of the non-tariff barriers which hinder enhancement of Pakistan's exports:

Import Authorization System: According to Iranian system, all the importers are required to first register their requests for imports with Ministry of Commerce through a system called Sabt-e-Safaresh. After processing of the case, the Ministry of Commence issues an import permit which is valid for 6 months. In some cases, the issuance of import permit also requires NOCs from other ministries/ departments. When the Iranian government wants to restrict/ ban import of some items, it simply stops processing of import permits.

Frequent Changes in Import Regime: The Iranian rules and regulations change quite frequently and there is no official mechanism to notify such changes promptly. The aura of uncertainty in the local market deters business activity. Late Publication of Annual Tariff Book: Every year, after commencement of the new Iranian year on 20/21 March, the Ministry of Commerce I.R. of Iran, publishes a book containing new import/ export regulations and customs tariffs as per harmonized commodity descriptions and coding system.

Banking problems: Banking restrictions imposed by the UN & the US on Iranian Banks have adversely affected Pakistani exports as major Pakistani banks no more accept LCs opened by these banks. So this factor has also discouraged our genuine exporters due to high risk involved in cash/ credit transactions.

Indirect Trade via Dubai: Due to high tariff import regime imposed by the Iranian government, a large number of Iranian importers are forced to receive their imports from Pakistan and India through Dubai. Reportedly, the Iranian companies get the Pakistani merchandise at Dubai and from there they re-export it to their sister firms in Iran, suitably under-invoiced. Furthermore, owing to delays/ problems in opening Letters of Credit (LCs) from Iran, in a large number of cases the Iranian companies prefer to open LCs from Dubai through their sister companies for Pakistani merchandise which is directly shipped to Iran. However, in trade figures this is reflected as trade between the UAE and Pakistan.

Courtesy: www.brecoder.com

Iran's new exchange rate strategy affecting importers

2012-11-29T15:15:00.000+05:30

Trade sources indicates that Iran has just reworked its multiple exchange rate system to circumvent sanctions and importers in Iran will now have access to the open market exchange rate with a 2% discount.

This means that the Iranian importer will now have to shell out Rs 23,000 to Rs 25,000 Rials (or 2,300 to 2,500 toman) against one dollar as compared to 12,600 Rials against a dollar a week ago.

We are yet to get an official communication from Iranian authorities. Media reports from Iran say that such a change has been brought in. Even our trade sources have also indicated such a change.

The Trade Promotion Organisation of Iran has recently released a new list of goods including wheat, sugar, meat, corn, dairy products, livestock, confectionery, iron products, rice, and some specific petrochemicals.

Authorities have divided imports into 10 categories based on how essential they are for the Iranian economy and will accordingly provide importers with dollars at a subsidised rate to buy basic goods.

Those products which are not produced domestically will be removed from the list of banned items, but most of the named products are produced in the country and there is no need to import them.

Western sanctions over Iran's controversial nuclear activities have caused a shortage of foreign currency in the country sparking a drastic devaluation of the Iranian Rial and sending inflation soaring.

Iran functions on a multiple exchange rate system to circumvent the sanctions. First, there is the official exchange rate of 12,500 Rial (1,250 toman). Then there is the open market exchange rate which varies between 25,000-28,000 Rial (2,500-2,800 toman) and finally the unofficial market rate of 28,000 Rial (2,800 toman).

It is learnt that Iran has now classified imported goods into three categories:

The first category consists of "strategic goods" which have access to the official rate of exchange, which is stable at 12,600 Rials (also known as 1,260 toman).

The second division consists of goods which are being prioritised and this, according to buyer sources, includes rice. There is unconfirmed news that importers in this category will have access to the open-market exchange rate with a 2% discount. This would work out to roughly less than 23,000 to 25,000 Rials (or 2,300 to 2,500 toman).

And the third division is being restricted or banned.

If this happens then it will be a major blow to the exporters worldwide.

Bridges & Bonds now a proud member of "World Trade Centre - Mumbai"

2010-09-22T21:34:00.000+05:30

About World Trade Centre (WTC)

Established in 1970, the World Trade Centers Association(WTCA) is a not-for-profit, non-political association that fosters the WTC concept and develops inter-WTC cooperative programs. The WTCA is dedicated to three basic goals : assisting its members in establishing successful WTCs; encouraging mutual assistance and cooperation among members; and fostering increased participation in world trade by industrializing nations. With its unique global mission and membership, the WTCA has been a world leader in creating innovative services for international business. At present WTCA has more than 314 WTCs spanning 91 countries in its fold.

More than a building or an organization, the World Trade Centre (WTC) brings together business and government agencies involved in international trade, provides essential trade services and stimulates the economy of the region it serves. WTC puts all the services associated with global commerce under one roof and it's address gives a business prime and continuous access to resources essential for success in world trade. A World Trade Center in any city is a business shopping center, complementing and supporting the existing services of private and government agencies. A WTC offers its members and tenants a wide range of facilities and services. Since WTC services are reciprocal, members can access them at all operating WTCs around the world.

Export figures - still no reason to celebrate

2010-08-05T23:05:00.000+05:30

The newly released export figures have shown a growth of 30.4 percent at $17.75 billion in June compared to $13.60 billion in the same month last financial year. And while some sectors showed signs of an early revival, a few labour-intensive sectors still continue to reel under severe crisis.

Moreover, the growth which we are witnessing based on these latest figures cannot be termed robust as they have still not been able to exceed the level that the sector saw prior to recession. In addition, the prime concern that things have still not stabilized in economies like the US and Europe, doesn't speak too well of the future.

Although the momentum in growth is good news, we must also bear in mind that it is against a low base. For instance if we take May's exports of $16.1 billion, we will notice that it is much less than $18.5 billion registered in May 2008. With the probability of increase in the cost of export credit and with uncertainty in the Euro Zone, I still strongly believe that the labour-intensive sectors need assistance for some more time to come and the government should also consider extending focus market benefits to other European countries.

The export figures of June also show that export of engineering goods, petroleum products, iron ore, gems, precious and semi-precious stones, chemical products has risen significantly. But even though these products are performing well, they are still facing several procedural and transaction problems, which is making a dent in their capital. For instance, shipping costs have increased by more than 40 percent and consignments are lying in the ports due to absence of large vessels compelling clients to resort to domestic procurement. I think our authorities need to look into these hurdles faced by the sector.

Meanwhile, the gloomy story of exports in ready-made garments, textile and man-made fibers remained the same with very little growth owing to less demand from the country's traditional markets. I think although the growth in export as the figures tell us is good news, we are still not in a position to celebrate.

Exports from SEZs grow 67%

2010-07-20T22:29:00.000+05:30

New Delhi: Special Economic Zones (Sezs) have contributed handsomely to the total exports of the country. According to the latest data, exports from SEZs have grown 67% y-o-y to Rs.58756.68 (USD 1244 billion) crore in the first quarter of 2010-11. During April-June period of 2009-10 exports from SEZs stood at Rs.35,013 crore (USD 741.480 billion).

Exports from SEZs clocked a growth of over 122% to Rs. 2.20 lakh crore in 2009-10, compared to the previous fiscal. However, SEZ developers and units have expressed concern over the new draft direct rax code (DTC), which proposes to do away with income tax benefits given to new SEZ units.

A commerce ministry official said that any such rules would be counter productive as it would affect the manufacturing growth. "So far, SEZs have attracted a fresh investment of Rs. 1.66 lakh croreto create the manufacturing facilities in the county." said the government official.

IT, IT hardware, petroleum, engineering, leather and garments are the leading exports from SEZs. According to a government official growth of exports is expected to rationalize to about 20% in 2010-11. Of the total 578 approved SEZs, 111 are operational.

Under the SEZ Act, units in these zones enjoy 100% tax exemption on their income for the first five years and 50% in the following five years.