NEW DELHI, MAY 27: Exporters of engineering products and handicrafts may get more fiscal sops to help them tide over the demand crunch, commerce and Industry Minister Anand Sharma said, “We will have to tweak those sectors which have not recovered,” Sharma said.

He said DGFT in his ministry would complete a performance review of different sectors in july. Labour-oriented export sectors like handicraft, jute, engineering goods and electronics registered negative growth in March, despite the country’s overall exports showing 54.1 percent expansion. In a similar exercise in December, the govt had provided some market and product linked incentives.

For encouraging export diversification outside the western economies, the commerce Ministry had extended incentives on shipments to 41 new markets.

The govt intervened with a stimulus packages when exports plunged after October, 2008, under the impact of global financial woes.

“It was a tough call because last May, our exports were in deep red, 39.4 per cent,” sharma said, adding that the export sector has seen a broadbased consolidation. According to a senior Commerce Ministry official, incentives could be shuffled among different sectors. Those doing well like gems and jewellery may have to segments still in trouble.

In 2009-10, India’s exports dipped by 4.7 percent to $176.5 billion from $ 185.29 in the previous fiscal. sharma, who is also in charge of the Industry Department, said consolidation has also taken place in the manufacturing sector.

The manufacturing sector, which saw growth dive to 3.3 percent in March, 2009, had peaked at 18.5 percent growth in December, 2009 His ministry is working on a plan to give a fresh impetus to the sector. A concept paper on setting up National Manufacturing Investment Zones (NMIZs) has been placed in the public domain.

Some of the suggestions, like giving flexibility to units in NMIZs to downsize the workforce, are considered radical, sharma said, however, there would be provisions for social safety for the workers.

NEW DELHI, MAY 27: THE record oilseed stockpile of 26 million tonnes may lead to a 25 per cent drop in edible oil imports this year.

Being the world’s biggest importer of edible oil, the country still has about 70 per cent of this year’s oilseed output to process. But crushing will pick up only from june a forecasts of a good monsoon promise another bumper crop.

Increased oilseeds crushing in the third quarter will limit the need for imports and possibly have a bearish impact on bench mark Chicago soyaoil and Malaysian palm oil markets.

Traders predicted that edible oil imports-chiefly palm oil imports from south East Asia and soyaoil from Latin America-could dip by 20 per cent to 1.6 million tonnes from july to September.

Vegetable oil imports rose by 9 per cent to 2.4 million tonnes from November 2009 to january 2010. But in April this Year, imports fell by 22.3 per cent from the same month of 2009 because refiners cut purchases on prospects of domestic products entering the market.

NEW DELHI, MAY 27: RISING demand may see pulses imports touching 4.2 million tonnes in 2011-12, a report here said.

India is the world’s top pulses producer. But the production of 14.7 million tonnes failed to meet the consumption, leading to annual imports of 1-2 million tonnes, the report pointed out. A total of 2.9 million tonnes of pulses was imported in 2008-09.

The report projected demand for pulses at 19.9 million tonnes and production at 15.7 million tonnes in 2011-12. Demand for pulses is likely to go up to 23.8 million tonnes by 2020.

MUMBAI, MAY 27: Gold imports surged by 71 percent during April to 34.2 tonne compared to the year ago period as prices declined to touch a low of Rs 16,262 against the record Rs 18,500 level achieved in December 2009. The shipments during April 2009 stood at just 20 tonne due to less demand following global economic crisis, according to data given by the Bombay Bullion Association.

Gold prices ruled in the range of Rs 16,262 and Rs 17,140 per10 grams level in the previous month giving rise to both the seasonal as well as the investment demand, an industry expert said, In the international markets the yellow metal touched a low of 1,111 $ an ounce (28.34 grams) and a high of 1,182 an ounce during April. The imports during January stood at 34 tonne. Gold shipments had declined during February and March to 28.8 tonne and 27.8 tonne respectively, following slight recovery in prices and slowdown in demand  due to the off season.

NEW DELHI, MAY 27: A depressed tanker market has helped india’s three staterun oil refiners secure 40 pc lower rates for hiring 22 ships from local fleet owners in a new annual contract that began earlier in May. Indian oil Corp. Ltd (IOC), Hindustan petroleum Corp. Ltd and Bharat petroleum Corp. Ltd have together hired 22 ships to haul petroleum products along the coast. shipping Corp. of India Ltd (SCI) and Prathibha shipping Co. Ltd supplied six ships each, Great Eastern shipping Co. Ltd added seven, and Mercator Lines Ltd. Sanmar shipping Ltd and Castle Shipping Ltd contributed one each. India’s coastal trade is reserved for India registered ships and foreign ships can be hired only when Indian ships are not available, “We have secured a reduction of about 40 pc over the last year’s rates due to market conditions,” said an executive at IOC who corrdinated the tender on behalf of the three oil companies. “The day rates on the new shipping contract with state owned oil companies have come down by about 40 pc this year,” said K.S. Nair a director heading SCI’s bulk carriers and tankers division. Day rates for hiring tankers have reduced to Rs 2.28 lakh for small ships and to Rs 8 lakh for the biggest ships, the IOC excutive mentioned earlier said, requesting anonymity. The rate was about Rs 3.02 lakh a day for small ships and Rs 11.43 lakh a day for the bigger ships in last year’s contract, which ended in April, he added.

THE auction for high-speed third generation (3G) mobile spectrum saw bids close to Rs 70, 000 crore (Rs 67, 719 crore, to be precise), twice the amount the government had expected to get, for both 3G and broadband wireless access (BWA) spectrum, but without any operator winning a nationwide licence, setting the stage for industry consolidation. Fast and furious has been the bidding, but lethargic would remain data connectivity at the popular level. BWA spectrum now on offer would be intense.

This would result i a massive transfer of liquidity from the banks to the government, funneled the telcos, Bankers have expressed their fears to RBI of a liquidity crisis, leading to volatility in the money markets in june as close to Rs 1.00,000 crore goes out of the banking system on account of advance tax outgo, coupled with payments by telcos for 3G spectrum.

At  around one per cent of GDP, the Indian bid numbers broadly match the average seen by Europe 10 years ago.

The end of 34-day and 183 rounds of bidding paved the way for services such as video calling and high-speed internet using phones to be launched across India. According to all phone companies that have won 3G air waves, they will launch 3G services by the year end or early or early next year.

With additional expected earning of about Rs 12,000 crore from the BWA auction, the government is likely to mop up almost Rs 80,000 crore from spectrum against a projection of just Rs 36,000 crore in the Budget for 2010-11.

                   EXPORTS UP BY 36 PC IN APRIL 2010

Exports in April 2010. at $16.9 billion, clocked a 36 per cent growth year-on-year on the back of higher demand for Indian gems and jewellery, textiles, petroleum, oil and lubricants and engineering ($12.4 billion in April 2009). Imports too went up by 43 per cent to $27.3 billion in April 2010 from $19.1 billion a year ago.

Trade deficit, as a result, increased to $ 10.4 billion from $6.7 billion during the same period. The import growth was riding on industrial recovery, exports recovery and growth in domestic demand.

Sectorwise, exports of POL products recorded a rise of 80 per cent, followed by gems & jewellery 36 per cent, textiles 30 per cent and engineering 16 per cent, sectorwise, import of gems & jewellery increased by 118 per cent, iron & steel by 141 per cent, metal ores by 100 per cent, POL by 70 per cent, non-ferrous metals by 50 per cent and organicee chemicals by 44 per cent.

            Kochi, May 25: The U.S. dollar will remain a major component of  India’s forex as most of the country’s overseas trade is denominated that currency, RBI deputy governor said “Euro is not a significant component in total reserves. Our major reserves will always be in dollars as 90pc of trade happens in dollars.” K.C.chakrabarty said. Data released by the RBI on May 14 showed India’s foreign exchange reserves were $276.24 billion, which included foreign currency assets worth $251.47 billion.

           The RBI does not provide a break-up of various currencies it holds as part of its forex assets. “Dollar is strengthening against all currencies, so it will be strenghening against the rupee also. You cannot stop it,”he said. The rupee hit a 6-1/2 month low of 47.33 per dollar last Friday, pressured by rising foreign fund withdrawals and falling stock markets.

               New Delhi, may 25: Apprehansive of the Euro zone debt crisis, exporters of engineering goods are declining fresh orders from buyers in European Union. They fear default and lower returns as the curency depreciates. Industry sources said it is the same case in the sectors.

              Compounding the sisuation is ECGC hesitation to provide insurance cover to domestic exporters against payment risks, except on a case-to-case basis.

              Mr Rakesh Shah, former Chairman, Engineering Exports Promotion Council and MD, Nipa Exports (which export to the EU too), said “Many exporters, especially from the small and medium sector (comprising half of the total Indian exporters), are current Euro rates. They fear the returns may be lesser. Also, buyers are unwilling to hike prices.”

             Engineering exports account for about a fifth of India’s exports to the EU. of this 50-60pc of trade is in euro terms. The most hit are the transactions where Europen buyers unwilling todo business in any other currency apert from the euro. Exporters are also watching the health of the banks in the EU.

             “We cannot bank any more with the smaller and lesser known European banks for letter-of-credit transactions.” Mr Shah said, adding that exporters are moet comfortable only where there is a long -term relation ship with buyers.

             ECGC CMD, Mr A.V.Muralidharan, said, “We are closely monitoring the situation in Europe we will look at it on a case by case basis depending on the credentials of the buyer in Wurope.” He said ECGC will not deny insurance cover assured to the existing orders, adding it has so far advised exporters against taking fresh orders from EU.

             ECGC proided cover to 12 pc of India’s total exports (of $176.5 billion in 2009-10) and for a fifth of India’s shipments to the EU. Adding to the worries is the flash floods in Europe.

            The rupee has strengthened by over has 13 pc as on Friday against the Euro from January 1, 2010. The forex volatility has also been troubling erporters.

               Mumbai, May 25: The govt last Friday, allowed export of cotton under License a month after it halted eaport registration to rein domestic prices. “Now the eaport of cotton is allowed under License. This is with immediate effect,’ said BA Patel, joint textile commissioner. 

              New Delhi, May 25: United Arab Shipping Co (UASC) has restructured its Local services covering Pakistan, India and the Red Sea that act as feeder services for the carrier’s line haul network. Aa result the carrier now runs a UAE-Pakistan -India loop (IMC 5) and a red Sea service centred on Jeddah (IMC 6). Each loop offers weekly sailing and uses two ships of 2,200 TEU. The IMC 6 services supersede the IMR butterfly loops, which were launched in January last year. It said the former IMR service used six 2,200-TEU vessels that made port calls at khor Fakkan, Port Sultan Qaboos, Karachi-port Muhammad Bin Qasim Karachi- PICT, Pipavav, Nhava Sheva, khor Fakkan Jebel Ali,Yanbu Jeddah Aqaba, Sokhana, Jeddah, Port Sudan, Hodeidah Jebel Ali, Khor Fakkan.

             The port rotation for the IMC-5 service is: Khor Fakkan, Port Muhammad Bin Qasim, Karachi, Pipavav, The port rotation for the IMC-6 service is: Jeddah, Hodeidah (1/2-A), Port Sudan (1/2-B), Sokhna, Aqaba Yanbu, and back Jeddah.

             Vessels deployed on the IMC-6 service call at the ports of Hodeidah and Sudan on alternate rotation, every 14 days.