WASHINGTON, APRIL 29: INDIA has rejected the US claim at the World trade Organisation (WTO) that New Delhi, ought to phase out the subsidy given to textile and apparel exportel exporters because they attained export competitiveness in the global market, diplomats said.

During a meeting of the Committee on subsidies and countervailing Measures, the US maintained that India had attained a global market share of over 3.25 per cent for two calendar years.

KOLKATA, APRIL 29: THE Container Corporation of India (CONCOR) is planning a 6.5 per cent hike in freight rates, for transport of containers between Amingoan (Guwahati) inland container depot (ICD)  and Kolkata port.

The hike  has been necessitated by the Railways raising haulage charges by 7.5 per cent.

CONCOR is likely to absorb one per cent of the Railways hike, a CONCOR spolesman said.

“Besides, the Raailways rates came into force from January, but we are yet to charge the revised rates.”

A section of the shippers, however, sought a smaller rise. A final decision is expected to be taken shortly. At the workshop, shippers demanded additional warehousing facilities at Amingaon.

At present, there are three warehouses with a total area of 1 lakh sq. m which, according to tea shippers, is not enough.

The matter has been taken up with the Assam government which has to provide land in the vicinity.

CONCOR, it is learnt, is willing to paricipate in a warehouse project in partnership with private firms.

In 2009-10, the throughput of ICD, Amingaon was 2,954 TEUs, surpassing the previous best of 2,753 TEUs in 1997-98. Out of this, export shipments  accounted for 2,929 TEUs.

NEW DELHI, APRIL 29: EVEN as the Steel Ministry is seeking an increase in export duty on iron ore, the commerce and Industry Ministry is considering only a ‘minor increase’ of duty on exports of iron ore lumps. The export duty on fines would remain unchanged.

At present, a 10 percent duty is imposed on lumps and 5 per cent on fines.

‘There  is no Justification for an increase in the duties for export of fines or a big increase in duties for lumps,” the commerce and Industry Minister, Mr Anand Sharma, said.

The Minister admitted that the sharp rise in steel prices was a cause for concern and had been discussed by a group of Ministers chaired by the Finance Minister, Mr Pranab Mukherjee.

The Revenue and Steel secretaries have been asked  to talk to the steel industry, he disclosed.

Price of lumps have almost doubled to $120-160 per tonne compared to the previous year. This may  also have a dampening effect on steel prices, which have risen by 20-25 per cent over the last few months.

PIPAVAV, APRIL 29: PORT pipavav has emerged as the Number  One gateway facility for exports of seafood.

The spurt in demand from south East Asian countries and increased catches from Gujarat coast and the requisite infrastructure has made port pipavav the biggest gateway for seafood exports.

The processing and freezing facilities up in Gujarat is one of the best in the country, sources in the Seafood Exporters’ Association of India (SEAI) said.

Seafood is exported from as many as 17 ports. Besides Pipavav, cochin Jawaharlal Nehru port, Chennai Kolkata, Vizag and Tuticorin are some of the prominent ports that export seafood.

BEIJING, APRIL 29: CHINA, the world’s largest cotton user, faces shortage of the natural fibre following India’s decision to stop exports, a chinese body said here.

India stopped exports recently to ensure domestic availability and cool prices.

“We will have to turn to US cotton after India’s decision to halt exports, but that may still not be enough,” an official said.

MUMBAI, APRIL 29: India’s gems and jewellery exports grew by 16 pc at $ 28 billion last fiscal due to revival in demand in major markets as well as recywell as recydiamonds, a top industry official said.

“The revival in demand as well as recycling of diamonds helped the Indian gems and jewellery market grow at 5 pc annually, Exports grew by 16pc,” Gems and jewellery Export Promotion Council (GJEPC) chairman Vasant Mehta said. Last fiscal, about $900 billion was sold globally of which about $ 20 billion came back to India for recycling, he said, adding the these diamonds were again exported back thus maintaining the growth rate.

“Many people sold off their diamond jewellery which were broken or damaged such diamonds are returned to India for recutting and repolishing and are again sold as new pieces of jewellery to those markets,” he said.

Mehta said that most of the reused diamonds come from the US market. He further added that the exports this year would be positive at more or less the same figure as last fical. He also mentioned that the cut and polished diamond export registered an increase of 20.11 pc to $17.54 billion in 2009-10 as against the year ago period.

Mehta said the council was focusing on emerging markets, mainly BRIC as well as the Afro-Asian markets gems and jewellery in small volumes. Mehta, however, said that the US and European markets would still dominate the export volumes.

The US and EU together accounts for about 70 pc of India’s total gems and jewellery exports. The sector contributed 13 pc to the country’s total merchandise export of about $ 186 billion in the last financial year. Mehta also said that increased value of gold would contribute to achieve positive growth. The gems and jewellery market, which is pegged at $ 16 billion, is expected to touch $ 30 billion by 2014.

MUMBAI, APRIL 29: EXPORTERS would now have to pay more for their shipments as most airlines, including Air India, have raised freight rates between 15 and 30 pc for both general cargo and perishables.

This has further squeezed their margins, which were already under pressure due a penalty they are paying for delays due to the recent volcanic eruption in Iceland.

Air India, Indian Airlines, Emirates, Jet  Airways, British Airways, Kingfisher, KLM, Gulf Air and Air Arabia are picking the cargo of those exporters who are offering the highest freight per kg.

Air India sources confirmed revision in freight rates but refused to give details.

Exporters of fruits and  vegetables are most concerned as they export 300 tonne of goods daily, of which 150 tonnes is air cargo. The fruit and vegetable exporters association has sought a 6 pc packing credit line from the Centre along with transport assistance by way of subsidy. It has also requested air lines to reconsider their decision to raise freight rates.

NEW DELHI, APRIL 28: THE Union government is thinking of tightening investment norms for non resident Indians (NRIs) in companies to ensure that they do not violate foreign direct investment (FDI) rules or enter areas where such investment is not allowed.

The Reserve Bank of India ((RBI) is also considering withdrawing the special status given to NRIs for investing in sectors such as aviation, housing and realestate.

NRIs are now allowed to invest up to 100 per cent in air transport services while other foreign investors are allowed only 49 per cent. They are also exempt from the conditions imposed on minimum capitalisation norms in real estate as well as the minimum size of area to be developed for housing.

As a first step in this direction, RBI and the Department of Industrial policy and Promotion (DIPP) have agreed on the need to scrap key clauses in Schedule 4 of the Foreign Exchange Management Act (FEMA), which permits NRIs to invest in companies on a non-repatriation basis. The proposal is expected to be cleared soon.

This option was given to NRIs so that they could utilse their domestic resources in their non-resident ordinary rupee account (NRO), which could not be repatriated outside India. In 2008, however, limited repatriation up to $1 million per year was allowed.

At present, NRIs can invest in companies through the FDI route or invest in the shares of a company through the secondary market, also called portfolio investment, besides investing through a route that does not allow repatriation.

However, under the new definition of FDI under press Note 2 of 2009, investments by NRIs through the non-repatriation route has not been included while calculating the sectoral caps for FDI in a company But NRI investments through the FDI route or the portfolio investment route is included in calculating sectoral caps.

This allows an NRI to invest, say, in a telecom company directly via the FDI route or through the portfolio route up to 74 per cent, which is the sectoral cap, and then acquire, say, an additional 10 per cent through the non-repatriation route, which takes his total investment to 84 per cent, and violates the sectoral cap in telecom.

As the policy dose not make it mandatory for an NRI to report to the government the 10 per cent equity he has picked on non-repatriation basis, RBI argues that it escapes the regulatory and supervisory lens.

LONDON, APRIL 28; THE volcanic dust over Iceland has exposed the vulner ability of global supply  chains as a number of leading brands saw their supply chains come to a halt.

This has forced several chains to adopt new risk management procedures to better prepare for disasters.

Retailers of perishable goods were particularly affected with everyone from Tesco to swiss supermarket  chain Migros and New york flower shops experiencing shortages.

Manufacturers were also at a loss, with BMW’s south Carolina, plant forced to cut production, it was reported.

Marsh, the risk adviser and insurance brokerage, has reported an increase in requests for consultation on disaster plans, Its first bit of advice is to have an early warning system in place as well as alternative operating sites.

Meanwhile, airlines across the world continue to work through the backlog of air freight piled up at regional hubs such as Hong kong.

Qantas noted that while it would only take a few weeks to clear the 15,000 marooned travellers, backed up cargo shipments, which receive lower priority than passengers and mail, may well take months to clear.

NEW DELHI, APRIL 28: FORTIFIE by the increased production of steel, cement and electricity; the six major infrastructure industries have registered a growth of 7.2 per cent in March -the highest in 2009-10,

The cumulative growth of the sector was 5.5 per cent in 2009-10, as against just 3 per cent in 2008-09.

The infrastructure sector, which has a 26.68 per cent weight in the Index of Industrial production in the Index of Industrial Production (IIP), had grown at 4.7 per cent in February and 3.3 per cent cent in 2009.

its growth in march has fuelled the expectations of a sustained high growth in overall industrial output, which has been in double digits since october.

“The core sector data are quite encouraging, especially the performance of the sectors of steel power and cement.

This will keep the overall IIP strong and, given the bump up in industrial production in March, the IIP growth will be impressive,” asserted YES Bank chief Economist, Ms shubhada Rao.

Electricity generation, coal and cement  production grew at 7.8 per cent each during March. as against 6.3 per cent  and 10.1 per cent, respectively, during the corresponding month of 2009.

Finished steel production posted a rebust 9.2 per cent growth in March, as against a decline of 1.8 per cent in March 2009, Crude oil and petroleum refinery output grew at 3.5 per cent and minus 0.4 per cent during the month, compared to minus 2.3 per cent and 3.3 per cent, respectively. during the corresponding period last year.

For the entire 2009-10 period, cement production grew at the highest average annual rate of 10.5 per cent, while growth in petroleum refinery products output was the least, at minus 0.4 per cent.