Thursday, August 31, 2017

Australian Atlas Iron expects higher operating costs, lower ore shipments in FY 2017-18

Australian iron ore miner Atlas Iron expects higher operating costs and lower shipments in fiscal year 2017-2018 (July-June), it said in its annual results.
After meeting its C1 cash costs guidance in fiscal 2016-2017 with an average of A$34.80/wet mt (US$27.59/wmt) FOB, Atlas expects it to rise to A$37-$39/wmt FOB in the current fiscal year, the company said.
Full cash costs are expected to rise to A$54-A$58/wmt CFR China, from A$53/wmt CFR China, it said.
“The expected increase in operating costs is driven by longer road haulage distances, higher sea freight rates and reduced export volumes when compared to FY 2017,” it said.
“The end of collaboration arrangements with key contractors drives a slight increase in C1 cash costs but relieves Atlas of the obligation to pay margin and premium payments to contractors in periods of strong iron ore pricing,” it added.
Its iron ore shipments, meanwhile, are expected to fall but the proportion of lump product, compared to fines, is tipped to increase.
The company is forecasting its shipments of ore at 9 million-10 million wmt, down from 14.4 million wmt in the past fiscal year.
Atlas ceased crushing at Wodgina during the April-June quarter, with iron ore mined tapering off from 1.14 million wmt in the January-March quarter to 180,990 wmt in the June quarter.
The miner did add that it is planning to issue an updated guidance and scheduling for its Corunna Downs project once key approvals are secured.
For its shipped tonnes, lump is expected to make up 3.5 million-3.8 million wmt, while fines is forecast at 5.5 million-6.2 million wmt.
The lump product typically attracts a premium to fines, it said.
Atlas is an independent iron ore company, which exports from its operations in the Northern Pilbara region of Western Australia. Since listing on the Australian Stock Exchange in 2014, it has grown into a mid-sized mining and exploration company.

Wednesday, August 30, 2017

India world's largest shrimp exporter in 2016

Seafood exports from the country hit an all-time high last fiscal with the total revenue touching $5.78 billion, or Rs 37,870.90 crore, by exporting 11,34,948 tonne seafood products, largely due to a robust demand for frozen shrimp and fish.
shrimp exports , Seafood  exporters
India claimed the top spot in shrimp exports to the global market in 2016 with an unprecedented 14.5% growth over the previous year, according to a trade report by FAO’s Globefish, which is responsible for information and analysis on international fish trade and markets. The report says that India also achieved the distinction of 130% growth in the exports of value-added shrimp, growing from 10,100 tonne in 2015 to 23,400 tonne in 2016, mostly directed to the US market. India is the second-largest fish producer in the world after China and accounts for nearly 6% of global fish production. Seafood exports from the country hit an all-time high last fiscal with the total revenue touching $5.78 billion, or Rs 37,870.90 crore, by exporting 11,34,948 tonne seafood products, largely due to a robust demand for frozen shrimp and fish. According to Globefish, the top five shrimp exporters to the international market in 2016 were India (438,500 tonne, +14.5%), Vietnam (425,000 tonne, +18–20 %), Ecuador (372,600 tonne, +7.8%), Indonesia (220,000 tonne, +21%) and Thailand (209,400 tonne, +22%). India’s top export markets include the US, Vietnam, the EU and Japan. Indian seafood exports to the US is seen recouping its losses suffered due to the punitive tariff imposed by US department of commerce (USDOC) in 2004 with the help of higher production of vannamei shrimp, which is cheaper than the traditional black tiger.
Seafood exports to the European Union and South Africa have also come under intense scrutiny in the recent past. The EU commission has passed a motion to increase the number of shipments of Indian aquaculture products stopped for checks at the borders to 50% from 10 % earlier. On the global demand for shrimp, the reports says that US, EU and Japanese markets showed a moderate growth. Strong demand was reported from China due to decline in domestic production. International prices remained stable throughout 2016. “Mixed production trends for farmed shrimp were observed in Asian producing countries during 2016, with a total estimated production of around 2.5 million tonne. While disease remained a major concern, adverse weather conditions also had impacts on production, particularly during the first half of the year. Fortunately, supplies recovered in India, Indonesia, Vietnam and Thailand during the second half of 2016,” the report said.
International prices for shrimp remained stable throughout 2016. “In terms of prices, vannamei shrimp prices increased marginally during 2016. In the single-largest import market, the US, there was a 5.5% rise in import prices compared with 2015. US prices for Indian shrimp and Ecuadorean shrimp increased 2.7% and 7.8% respectively,” the report said. Year-on-year imports increased significantly in Vietnam, China, the Republic of Korea and Hong Kong.

Tuesday, August 29, 2017

South Pars Gas Exports jump 12 %

Natural gas exports from the world’s biggest deposit, South Pars, rose by 12 percent over the past 12 months, according to Iran’s head of customs, as quoted by Reuters. Gas condensate exports also increased, by 28 percent in terms of value, to US$6.9 billion. In addition to these, the field’s operator Petropars exported methane, propane, and polyethylene.
Most of the exports went to Asia, including China, India, Indonesia, South Korea, and Japan, and the rest went to Egypt, the UAE, Kuwait, and Turkey.

South Pars lies in the Persian Gulf and Iran, and Qatar—which calls its portion the Northern field—share its wealth. Petropars was in charge of the first ten phases of development in Iran’s 3,700 sq km section of the deposit, which is est6imated to hold 14 trillion cu m of natural gas and 18 billion barrels of condensate. This amount represents 7.5 percent of global gas reserves and 50 percent of Iran’s reserves.

Earlier this year, French Total inked a deal with Tehran for the 11th phase of development of South Pars. In June, the company said it will commit US$1 billion to the development of the South Pars offshore gas field in Iran, after the U.S. extended a sanction waiver. In an interview with Reuters, CEO Patrick Pouyanne said that “The U.S. waivers have been renewed and they will be renewed every six to eight months. We have to live with some uncertainty.”
Total took part in the initial development of South Pars back in the 1990s, but was forced out of the country when international sanctions were imposed on Tehran on suspicions that it was developing nuclear weapons. Now the company is back for the Phase 11 of the field’s development, estimated to cost some US$5 billion. It has a 50.1-percent stake in the field, partnering with China’s CNPC with 30 percent, and Petropars, which holds the remainder.
Natural Gas Exports Imports

Monday, August 28, 2017

Country imports 1.58m kg fruits every day

Bangladesh imports about 1.58 million kilograms of fruit every day, according to statistics of Bangladesh Bank. Imported fruits account for Tk 10 billion annually.In the financial year of 2014-15, some 1 million kg fruits were imported while this increased to 1.27 million in 2015-16 and 1.57 million kg in 2016-17.The majority of the imported fruits are apples, grapes, malta (manadrins), and pomegranate.Although the production of fruits is increasing locally, this can't meet the local demand, agriculturists said. The demand for local fruits is also increasing, they added.Papayas and bananas are grown throughout the year. Despite that, the supply of local fruits falls between January and September.During this period, a limited number of fruits including guava, ‘amra’ and ‘boroi’ are available. As a result imported fruits dominate the local market in the period.

According to Bangladesh Bank, fruits are imported from 46 countries including China, Brazil, New Zealand, Australia, Argentina, France, USA, India, Bhutan, Egypt and South Africa.

Out of the imported fruits, apples top in the list.

In the 2016-17 fiscal, 239 million kg apples were imported.

General secretary of Bangladesh Fresh Fruits Importers Association Sirajul Islam told Prothom Alo, "Fruit which are not produced locally, are generally imported. So there is no alternative. There is a demand of foreign fruits throughout the year. But the demand remains high for five months."

According to IndexMundi, Bangladesh is the 7th importer of apple, but Bangladesh stands 18th in terms of consuming apples. China is the top consumer of apples while India stands 5th.Malta (manadrins) dominate the local market after apples. A total of about 20 million kg maltas enters Bangladesh through sea and land ports.

About 5,50,000 kg maltas are sold and bought every day.

According to IndexMundi, Iraq is 8th importer of malta. Iraq imported 1,90,000 tonnes of malta in the financial year of 2016-2017.

Although Bangladesh imported 1,99,000 tonnes of malta in the period, its name is not included in the list.

Fresh grapes stand in the third position in fruit markets. A total of 2,12,000 kilograms of grapes are purchased every day in the country.

Pomegranates are in the fourth position. A total of 3,18,00,000 kilograms of pomegranates were imported in 2016-17 fiscal.

Oranges are in the fifth notch among imported fruits.

According to businessmen, around 30 per cent imported fruits are sold and bought in Dhaka, 15 per cent in Chittagong, and the remaining 55 per cent across the country.

Deputy director (Fruit and Flowers) of the Department of Agriculture Extension, AKM Monirul Alam, told Prothom Alo that people are still prefer local fruits.

Bangladesh is in the seventh position across the world in mango production and possibly in the first place in jackfruit growing.

Project [fruit production and nutrition around the year] adviser of the Department of Agricultural Extension, SM Kamruzzaman told Prothom Alo that agriculture ministry has taken many steps so that fruit production increases from September to January. Several species of guava, mangoes, jackfruit, and citrus have been planned to grow during this time.

If these fruits come to market, the import of foreign fruits will decrease, he added.

Local fruits have more nutrients than the foreign ones, said Kazi Nazia Sharmin, head of Applied Food Science and Nutrition department, Chittagong Veterinary and Animal Sciences University.

She told Prothom Alo fruits should be eaten as fresh as possible. Foreign fruits take a long time to
reach consumers and lose many nutrients.

The nutrition expert also said people should keep at least one fruit on their food menu every day.
Fruits Exports Imports

Friday, August 25, 2017

Indian exports of polished diamonds slip 0.3% in July

NEW DELHI: India’s exports of polished diamonds in July were $1.65 billion, a slight decline of 0.3 percent on the year. Polished exports for the April to July period rose 2.4 percent to $7.4 billion, according to the figures released by the Gem & Jewellery Export Promotion Council (GJEPC).
Polished imports declined by 8.4 percent to $228.0 million in July, but declined by 8.4 percent to $885.8 million for the April to July period. The GJEPC said that imports of rough decreased by 6.1 percent in July to $1.33 billion, but for the April to July period soared by 11.6 percent to $6.7 billion.

Indian exports of polished diamonds

Wednesday, August 23, 2017

Indian finished steel exports up 64%; imports rise 42% in July

India’s export of finished steel surged by 64.2% to 0.770 million tonne in the month of July against the 0.469 million tonne in the same month a year ago, according to a report.
On the other hand, finished steel imports also jumped by 42.2% at 0.798 million tonne in the said month this year against the 0.561 million tonne last year, said the report by Joint Plant Committee (JPC), which gathers data on iron and steel sector in India.
“India was a net importer of total finished steel in July 2017 but maintained its net exporter status for the cumulative period, i.e. during April-July 2017,” it said.
During April-July period this year, exports of total finished steel were increased by 65.5% to 2.807 million tonne as compared to 1.696 million tonne in the same period last year, the report said.
The imports of total finished steel was 2.505 million tonne in April-July period, an increase of 4.7%, as compared to 2.393 million tonne during the same period a year-ago, it added.
The total finished steel consumption increased by 3.7% to 6.905 million tonne in July this year from 6.660 million tonne in July 2016.
However, the overall consumption finished steel was declined by 4.2% in July from 7.210 million tonne in June 2017, said the report.
During April-July period this year, total finished steel consumption in the country surged by 4.4% to 27.911 million tonne as compared to 26.736 million tonne in the corresponding period last year, on account of rising output for sale and imports, it said.
India is third largest country in the production of crude steel followed by China and Japan.
Indian steel exports

Basmati rice overtakes buffalo meat to become India's top export

The basmati rice exports increased from Rs 6,196 crore of last year’s April-June quarter to Rs 8168 crore in the same quarter this year.
Basmati rice has regained its position as the top commodity export from India. The famed rice variety replaced buffalo meat to become the top most export for the April-June quarter.
Basmati rice had been countries key export commodity for years. But since 2014-15 financial year, buffalo meat had surpassed the former, thus becoming the top export commodity.
A report in the Business Standard says, this happened after Iran, which consumes over a quarter of India's Basmati exports to the world had suspended all new orders earlier.
Iran usually suspends import orders during its harvesting season. As per reports, this year the traders in Iran have continued importing Basmati even during the harvesting season.
As per the Agricultural & Processed Food Products Export Development Authority (Apeda) estimates, the Basmati exports increased from Rs 6,196 crore from last year's April-June quarter to Rs 8168 crore in the same quarter this year.
Another factor behind Basmati grabbing the top spot in exports is the decline in the export of buffalo meat. Despite the decline in buffalo meat exports, the revenue earned from its exports increased nominally from last year’s Rs 5445 crore to Rs 5473 crore in present year’s April-June quarter.
While the short lived ban on the sale of cattle in mandis hit the buffalo trade adversely the recent government actions in the export market has had a contrary effect on basmati trade.
Basmati rice exports from India

Sunday, August 20, 2017

Govt plans bulk drugs parks, import curbs to boost manufacturing in India

New Delhi: In a bid to revive India’s active pharmaceutical ingredient (API) and bulk drug market, the government is contemplating restrictions on the import of APIs and has suggested setting up of mega bulk drug parks, a move that is expected to boost domestic production.
In the draft pharmaceutical policy framed by the department of pharmaceuticals under the ministry of chemicals and fertilizers, the centre has proposed “peak customs duty” for all APIs that can be indigenously manufactured.
Bulk drugs or APIs are the active raw materials used in a drug that give it the therapeutic effect. “All APIs which can be indigenously manufactured should be imported at peak customs duty,” said the draft policy, reviewed by Mint.
The government has also proposed that formulations produced from indigenous API and its intermediates (the raw material for manufacturing API) be given preference in government procurements. The move gains significance given India’s dependence on China for bulk drugs. More than 75% of India’s bulk drug imports come from China, according to the department of pharmaceuticals. “It has a direct bearing on the drug security of the nation as a whole,” said the draft.
Ramesh Adige, a former executive director of Ranbaxy Laboratories Ltd, said urgent policy interventions are needed. “The requirement of bulk drugs for the Indian pharmaceutical industry was till recently met by API manufacturing in India. But then, China emerged as the dominant player in the global API industry due to its large-scale manufacturing capabilities of APIs and intermediates,” he said. “This subject has been under discussion at the highest levels in the government for last five years now. This is considered to be a national security issue and we should not delay taking action any further.”
To reduce dependence on imports, the government has also suggested monetary incentives for companies, recommending that formulations produced from indigenously produced APIs be taken out of price control for five years. The “price benefit”, according to experts, will trigger fresh investments. “Low margin in API business is one of the major reasons for Indian companies to shift their focus. Each of the companies have gradually shifted from API to formulations. By keeping the formulations produced from indigenously produced API out of price control, the domestic manufacturers will be protected as they will get a price benefit,” said an expert who was part of V.M. Katoch committee formed by the centre to formulate a long-term policy and strategy for promoting domestic manufacture of APIs/bulk drugs in India.
Additionally, the government has proposed setting up dedicated parks in the country where special priority will be given to bulk drugs makers. Pharmaceutical firms currently needs a lot of clearances to set up a manufacturing plant. To simplify the process, the draft policy suggests providing adequate logistics and timely clearances to set up plants. “Mega parks should provide for clearances for plants with minimum interface/single window clearance of various agencies by placing an official of the concerned department including the department of environment within the mega park itself. The state government would be encouraged to set up these parks in a public-private partnership mode,” it further said.
According to the department of pharmaceuticals, more than 60% of APIs are sourced from other nations; for some specific APIs, the dependence is over 80-90%. “Our competitiveness and capability in manufacturing some of APIs has also dwindled. The new pharmaceutical policy therefore needs to address the way and means to restore and revive the API,” the draft said.
pharmaceutical imports India

Finished steel export surges 64 pc in Jul, import too picks up

NEW DELHI: Finished steel export jumped by 64.2 per cent to 0.770 million tonne (mt) in July compared to 0.469 mt in the same month last year, says a report.
Import of finished steel also shot up by 42.2 per cent at 0.798 mt in July this year compared to 0.561 mt in the same month last year, the report said.
"India was a net importer of total finished steel in July 2017 but maintained its net exporter status for the cumulative period, i.e. during April-July 2017," it said.
During April-July 2017, export of total finished steel was up by 65.5 per cent at 2.807 mt compared to 1.696 mt during the same period of last fiscal, the report by Joint Plant Committee (JPC), which collects data on iron and steel industry in the country, said.
Import of total finished steel at 2.505 MT in April-July 2017 was up by 4.7 per cent as compared to 2.393 MT in the year-ago period, it added.
The consumption of total finished steel grew 3.7 per cent to 6.905 mt in July 2017 over 6.660 mt in July last year.
However, the overall consumption was down 4.2 per cent in July as compared to 7.210 mt in June 2017, the report said.
During April-July 2017, consumption of total finished steel in India rose by 4.4 per cent to 27.911 mt from 26.736 mt in the same period of last year, under the influence of rising production for sale and imports, the report said.

Empowered by the Ministry of Steel, the JPC is the only institution in the country that collects data on the Indian iron and steel industry.

India is third largest producer of crude steel after China and Japan. The country is now looking to grab the second spot.

Thursday, August 17, 2017

Why India must take China’s warning of a trade war seriously

NEW DELHI: India has not taken Chinese bullying over Doklam seriously. For the last several weeks, China has been warning of helping insurgents in India, invading border areas in Uttaranchal and Kashmir, and a war breaking out soon. It is clear China cannot afford a war over Doklam. That’s why India has not responded to China’s belligerence in equal measure.

However, there is one war which can break out and India cannot afford it—a trade war with China. Recently, India imposed anti-dumping duties on 93 Chinese products. China is not going to tolerate this measure and is likely to respond. State-owned Chinese media has urged Chinese firms to reconsider the risks of investing in India and warned New Delhi to be prepared for the “possible consequences for its ill-considered action”.

An article in state-owned Global Times said that China could easily retaliate with restrictions on Indian products, but added that it “doesn't make much economic sense” for the country. But it warned that a trade war between China and India seemed to be looming after the imposition of anti-dumping duties on Chinese products.

Why India cannot afford to fight a trade war with China at this juncture? Consider the following:

India's trade deficit with China rose to $46.56 billion last year. China's exports to India totaled $58.33 billion, registering a meager increase of 0.2% compared to $58.25 billion in 2015. India's exports to China dropped 12% from 2015 to $11.76 billion.
India exports less to China (mainly raw materials) and imports more (mainly electronics and other manufactured goods which are in high demand). India's pharma sector has critical dependence on Chinese imports used in drugs manufacturing.
China's exports to India account for only 2 per cent of its total exports. So even if Indians boycott all the goods imported form China, it will not make as big an impact on China as to bring it to its knees before India.

Of course, China needs new markets for its manufactured goods, and India is one of those new markets where its electronic goods, especially smartphones, have found a large market. But China can find markets in other Asian countries and even in Africa. It is also trying to create a market for its goods in Europe. It is in no way dependent on India.

China is India’s largest trading partner, but the trade is heavily skewed in favour of China. A trade war when Indian manufacturing ability is limited is not going to favour India. India’s imports from China are crucial at this stage.India today imports telecom gear worth over Rs 70,000 crore annually, much of it from Chinese firms like Huawei and ZTE. Chinese companies dominate the telecom sector in India. In handsets, they control 51% of India’s $8 billion plus smartphone market with brands like Xiaomi, Oppo, Vivo and OnePlus.

Power is another sector where India has come to be dependent on Chinese imports. In the 12th Plan alone, almost 30% of the generating capacity was imported from China. In the rapidly growing solar energy sector, between April 2016 and January 2017, solar equipment from China had a share of 87% in a market pegged at $1.9 billion. According to consultancy firm Grant Thornton, in 2017, when inbound deals dipped, the Chinese shifted gears and accounted for 31% of the inbound deal value as against27% from the US.

The popular impression is that China is dumping consumer goods into India. But the fact is that India depends on China for capital goods too. Reduction in import of cheaper capital goods will push up production costs.

India can fight trade wars with China only when it has removed the big skew in its trade with China, which can take a decade of manufacturing growth.

India-made garments have the largest pie in US imports in H1

Chennai: For the first time in the history of India’s garment exports to the US, the country has clocked top position in market share in the category ‘men/boys knitwear shirts cotton’ (a variety of knitwear) for the first six months of 2017.
This was attributed to the slowdown in China. Exporters, however, said they will not be able to retain top position. Exporters say that since the US market offers a level playing field, they were able to compete with other countries, but the recent appreciation of the rupee against the dollar will be a major hurdle to them.
The data released by the Office of Textile and Apparel, US department of commerce, show that India exported 8.5 million dozens of men/boys shirts cotton to the US. India’s share in men/boys knitwear shirts import by the US stood at 8.7 per cent in June.
After a dip in 2014, India’s market share has been growing steadily. In 2013, India’s market share was 6.4 per cent and dropped to 6.2 per cent in 2014. From then it has been steadily increasing, and in 2016 it stood at 7.8 per cent.
Contrary to that, China’s market share, which was 11 per cent in 2012, dropped to 9.6 per cent in 2016 and is now 8.5 per cent. In other segments including women/girls knit shi-rts/blouses, cotton, men/boys cotton trousers, breeches, shorts, and cotton nightwear/pajamas, India and others’ market shares have increased.
While China’s loss is India’s gain, exporters are not happy because Vietnam is running India close. Bangladesh is also increasing its market share. The data show Vietnam exported 8.47 million dozens of men/boys knitwear to the US. Tirupur Exporters Association President Raja M Shanmugam said heavy investment increased India’s share in export. “The US is the only country that gives us a level playing field, and that is why we could compete,” said Shanmugam, adding that the country was losing the edge now because production cost was increasing here.
An exporter said: “We will not be able to compete with Vietnam or with any countries because products made here are becoming costlier.”
For example, exporters are quoting 3-5 per cent higher prices after the rupee appreciated, while the hike should be of around 7 per cent to compensate them for the losses on account of currency fluctuation. On the other hand, competitors' currencies have depreciated and they are bringing down the prices.

Friday, August 11, 2017

India Soybean meal exports up 235% in July

India's export of Soybean meal and its other value added products during July 2017 has been pegged at 0.98 lakh tonnes compared to 0.29 lakh tonnes in July 2016 showing an increase of 235% year-on-year, according to latest data from Soybean Processors Association of India (SOPA).

Soybean meal exports during the the period from April to July of 2017-18 financial year totalled 4.69 lakh tons, up 292% from  1.19 lakh tons in the corresponding period last year.

The release added that during current oil year, (Oct 2016 - Sep 2017), total exports during October 2016 to July 2017 is 16.46 lakh tons as against 3.48 lakh tons during the same period last year, showing an increase of 372.72%.
India Soybean meal exports
 Tag : India Soybean meal exports , Soybean meal ,Soybean oil,India Soybean meal

Anti-dumping duty on 93 products from China: Nirmala Sitharaman

NEW DELHI: Commerce and industry minister Nirmala Sitharaman on Wednesday said anti-dumping duty is in force on 93 products imported from China.
These products fall in the broad groups of chemicals and petrochemicals, products of steel and other metals, fibres and yarn, machinery items, rubber or plastic products, electric and electronic items and consumer goods, among others.

“In addition, 40 cases concerning imports from China have been initiated by Directorate General of Anti-Dumping and Allied Duties,” she told Rajya Sabha in a written reply.

Agriculture export falls to USD 33.87 billion in FY17

Agriculture export of India decreased to USD 33.87 billion in 2016-17 against USD 43.23 billion in 2013-14.

Agriculture export of India decreased to USD 33.87 billion in 2016-17 against USD 43.23 billion in 2013-14, Parliament was informed on Wednesday.

The reason behind the downfall in agricultural export was the lower commodity prices in the international market, which has made the exports uncompetitive, said by Nirmala Sitharaman Commerce and Industry Minister in the Rajya Sabha.

On the other side, the import of agricultural commodities (including plantation and marine products) in 2016-17 soared to USD 25.09 billion from USD 15.03 billion in 2013-14.

Both export and import of agricultural commodities depend on various factors such as availability, international and domestic demand and supply situation and quality concerns.

The minister added, edible oils and pulses, which are in short supply in India, account for the bulk of India's import of agricultural products
 During the last three years, the share of agricultural exports in total exports of the country has declined marginally and dropped to 12.26% in 2016-17 from 12.59% in 2014-15, she added.

Agriculture export of India

Gems & jewellery Q1 exports rise 4%

NEW DELHI: Gems and jewellery exports grew by about 4 per cent to USD 9.17 billion during the first quarter of the current fiscal, driven largely by demand in major markets like the US.
In the April-June quarter of last financial year, the sector's exports aggregated to USD 8.84 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).
The labour intensive sector contributes about 14 per cent to the country's overall exports. The rise in shipments was mainly supported by exports of silver jewellery, and gold medallions and coins.
Silver jewellery exports increased to USD 1.71 billion during April-June 2017-18, from USD 958.65 million a year ago.
Similarly, shipments of gold medallions and coins registered a growth of about 42 per cent to USD 1.51 billion during the period under review.
Gold jewellery shipments recorded a meagre growth of 1.78 per cent during the first three months of the current financial year.
Exports of cut and polished diamonds, coloured gem stones and rough diamonds also reported positive growth.
India's main export destinations include Europe, Japan, China and the US.

According to the GJEPC data, imports of rough diamonds rose by 17 per cent to USD 5.4 billion in April-June 2017.

Imports of gold bars, however, dipped by about 57.43 per cent to USD 569.12 million.
India's Gems and jewellery exports

India’s gems, jewellery export to touch $60 billion in 5 years: GJEPC

SURAT: India's gems and jewellery export is likely to touch the $60 billion mark from the current $43 billion in next five years. India's jewellery trade led by the Gems and Jewellery Export Promotion Council (GJEPC) has prepared a document titled 'Vision-2022' to be presented to Prime Minister Narendra Modi for a plan to increase exports by about 40% over the next five years.

One of those measures is to improve the industry's infrastructure by creating jewellery parks across the country. The jewellery parks would serve as "one-stop" locations for the entire production process. The first is planned for Mumbai. Other aspects of the programme include modernizing smaller jewellery manufacturers' equipment, enhancing the industry's design capabilities by collaborating with international designers and improving its merchandising.

GJEPC chairman Praveen Shanker Pandya said, "The vision document 2022 has predicted growth of the gems and jewellery exports by over 40%. However, there are concerns that the country's new goods and services tax (GST) would limit exports."
Pandya added, "The council was in an ongoing dialogue with the government to smooth out procedural issues arising from the new policy. Among those is the matter of charges for transporting diamonds between the states — for example, from Surat in Gujarat — where most of the diamond manufacturing takes place — to Mumbai in Maharashtra. That issue will be resolved in the next two months."
Since GST took effect on July 1, trading has returned to normal, as it did post-demonetization in November last year. "People thought these policies will diminish the industry, but it didn't," Pandya said. "Rather, we feel these decisions are enabling a level of transparency that we couldn't achieve before."
Pandya noted that electronic payments had increased as a result of demonetization and that cash transactions were being limited. Diamond dealers at IIJS agreed, pointing to a notable shift away from cash.
GJEPC's regional chairman of Gujarat, Dinesh Navadiya said, "The increase in export by 40% in next five years means that the capacity of the diamond manufacturing will increase. Since Surat is the largest manufacturing centre, we expect a lot of changes. This will further drive new opportunities for the manufacturers and create more jobs."
India Gems and jewellery exports

Thursday, August 10, 2017

Onion export registers 10-year high in 2016-17

Exports of onions play a crucial role in balancing the domestic price of the produce in the wholesale markets. India consumes almost 90 per cent of the home-grown produce, but 10 per cent export is necessary to prevent a price crash.
Onion exports from India have recorded a 10-year high in 2016-17, with the country recording export of 34.92 lakh tonnes (lt) of the bulb. The Central government’s decision to provide repeated extension to the export subsidy and zero minimum export price (MEP) of the produce has fuelled the exports in the last year or so. Exports of onions play a crucial role in balancing the domestic price of the produce in the wholesale markets. India consumes almost 90 per cent of the home-grown produce, but 10 per cent export is necessary to prevent a price crash. Exports had virtually stopped in 2014 due to the Central government’s decision to increase the minimum export price (MEP) in view of the steep increase in onion prices. Due to a glut in the prices of the bulb in 2015, the Central government had again reduced the MEP to zero (0) in December 2015. Also, the Central government had announced a 5 per cent export subsidy for onions to clear the glut in produce.
Since 2015, the exports of onions have seen a steady rise and at the end of the financial year 2016-17, 34.92 lt of the bulb was exported out of the country. This was almost three times the exports of the previous year when 11.14 lt of onions was sent to foreign shores. On an average, around 10 lt of onions are exported from the country every year. The United Arab Emirates (UAE), Sri Lanka, Singapore, Malayasia and Russia are major export destinations for Indian onion.
Jagdish Apshunde, an exporter from Nashik, said the government’s subsidy and the zero MEP has helped increase the export of the bulb. In June, the central government extended the subsidy for three more months to help clear the glut in the domestic markets. Exports, however, had failed to do much to improve the domestic price of onions which has been trading between Rs 5-6 per kg at most of the wholesale markets in the state.
of the country. This was almost three times the exports of the previous year when 11.14 lt of onions was sent to foreign shores. On an average, around 10 lt of onions are exported from the country every year. The United Arab Emirates (UAE), Sri Lanka, Singapore, Malayasia and Russia are major export destinations for Indian onion.
Jagdish Apshunde, an exporter from Nashik, said the government’s subsidy and the zero MEP has helped increase the export of the bulb. In June, the central government extended the subsidy for three more months to help clear the glut in the domestic markets. Exports, however, had failed to do much to improve the domestic price of onions which has been trading between Rs 5-6 per kg at most of the wholesale markets in the state.
Over the last two weeks, prices of onions have seen a spike, with the Lasalgoan market recording an average price of Rs 12 per kg. This price rise, Apshunde said, was temporary and will remain till the Kharif crop arrives early September. Market sources pointed out that the price rise was due to stockists wading in the market in anticipation of a shortage in the future. Agriculture analyst Deepak Chavan said the rise in price is due to fundamental market forces. “The outlook for the arrival of Kharif crop — the crop which is to arrive in September — is bleak. Onions from Karnataka start arriving by the end of August and there is a 40 per cent dip in the sowing area there,” he said. The dip in sowing, Chavan said, was due to farmers going for other crops due to low prices of onions. While Maharashtra has reported near normal sowing of 10,000 hectares, prices, according to Chavan, would be bullish in the face of a dip in arrival of onion
this year.


Wednesday, August 9, 2017

India rice shipments slow as stronger rupee lifts export prices

MUMBAI (Reuters) - India's non-basmati rice exports are likely to slow over the next few months as its shipments of the grain have become too expensive on the world market due to a rally in the rupee and an increase in local paddy prices.

Lower shipments from the world's biggest rice exporter will give rivals Vietnam, Thailand and Cambodia a chance to raise their share of the global market.

"Other origins are cheaper than India. There will be definitely a slowdown in exports," Nitin Gupta, business head of rice at Olam India, told Reuters.

India was offering 5 percent broken parboiled rice this week at around $410 a tonne, free-on-board (FOB) from Kakinada port on the east coast.

In comparison, Thai rice was offered at between $390 and $392 a tonne, and Vietnam rice was quoted at $400 to $405 a tonne.
"Due to an appreciating rupee, we can't match prices quoted by Vietnam or Thailand," said M. Adishankar, executive director at Sri Lalitha, a leading exporter based at Kakinada.

The rupee has risen more than 6.5 percent so far in 2017, reaching its highest in more than two years. A stronger rupee means rice shippers have to raise their dollar-denominated export prices to cover their purchases and other costs.
Key buyers of Indian rice in Africa - such as Benin, Senegal and Guinea - were not comfortable buying at the current level, Adishankar said.

Last month, India's high prices resulted in suspension of a government-to-government deal with Bangladesh, which needs to import rice to replenish stocks hit by flash floods.

After the deal with India was called off, Bangladesh agreed to buy 1 million tonnes of rice from Cambodia.

In India, paddy rice prices are still rising as most of the supplies from the winter crop have already been consumed.
"Until new summer crops enter into the market from October, paddy supply will remain tight," said a Kakinada-based exporter who declined to be named.

Indian farmers had planted 28 million hectares of paddy rice as of Aug. 4, up 4.9 percent from a year ago, but lower rainfall in southern states has raised concerns over the harvest.

"If Indian prices come down we can see demand from West African markets from October onwards for Christmas," said Gupta of Olam India.

"Prices need to come down by $10 to $15 (per tonne) to become competitive."

China coal imports rise in November despite push against pollution

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