MUMBAI, JUN 27: A first ever path breaking wage settlement was arrived at between Namerata Transport, the sub-contractor of All Cargo Global Logistics Ltd. at Gateway Terminals (India) Pvt. Ltd. with the Union, heralding recognition of right to association and to join Union of choice securing improvement of service conditions, Mr S.R. Kulkarni, president, Transport & Dock workers Union, Mumbai, announced.

Mr S.R. Kulkarni, the President of the federation and the chairman, of Asia pacific Dockers section of ITF, explained that after a long struggle of over 2 years and crusade against intimidation and the intervention of the International Transport workers Federation, the industrial dispute was propelled to the pedestal on global scale. The efforts of the ITF to secure the legitimate rights as a global union to which Transport & the Union, is affiliated, culminated into summit meetings between A.P.Moller Maersk at Brussels in September 2008, and at Berlin in March, 2010.

The initiative paved way for undertaking an exercise to ascertain the Union density of the claimant Union i.e. Transport & Dock workers Union, Mumbai and their rivals by workers Rights panel then constituted by A.P. Moller Maersk consisting of constituents viz. ITF, A.P. Moller Maersk and Human Rights Organization.

Upon the workers Rights Panel, declaring TDWU of commanding overwhelming strength of workers at GTI and GTI relented to abide by Indian Labour Laws.

The wages have been improved by over 70 pc with the incentives enhanced by 20pc.

Mr. S. R. Kulkarni lauded the initiative of ITF represented by Bro. David cockraft, General Secretary, Bro. Stuart Howard, Asstt. General Secretary, Bro.Pady crumlin, Bro.Dave Hinendel, US, and Bro. Mahendra sharma, the Regional Secretary of the ITF. He also tanked GTI and A.P.Moller Maersk for giving a human touch to the problem.

Mr P.K. Raman Secretary of the Union, who played a crucial role in organizing the Transport workers at BOT Terminals, stated that this settlement has granted dignity and recognition to Transport workers, who were virtually faced l’abour.

Mr. Raman professed that with windfall gain realized by the transport workers at GTI, other ranks of workers will stand boosted to claim their legitimate rights for better service conditions in NSICT,  ICTPL, port terminals where the contract Transport workers constitute a major  work force.

MUMBAI, JUN 27: Defending the govt’s move to ban cotton export, Union Textile Minister Dayanidhi Maran said that the decision was taken to bring down cotton prices, and to prevent its shortage in the domestic market. Maran said that once cotton arrivals start picking up in the new season from october, the situation will be reviewed.

He said that may spinning mills in pakistan had to close due to shortage of cotton, and the closure had a cascading effect on other segments, such as weaving and knitwear. India exported 78 lakh bales of cotton this year, he said, adding that farmers got a good price, above the MSP fixed by the govt. However, Maran said that the Indian spinning sector does not have adequate capacity to absorb all the available cotton.

The sector should add more spindles to make use of the cotton available in the country, he said. Maran had attended a meeting of the representatives of the textile industry, including confederation of Indian Textile Industry, southern India mills association, mills Association and Tirupur Exporters’ association on bringing down the prices of cotton yarn.

NEW DELHI, JUNE 27: India extended the ban on import of milk and milk products from china for another six months, according to the foreign trade office. The items prohibited for import into India from the neighbouring country would include chocolate and chocolate products condies, confectioneries and food preparations with milk as an ingredient.

The ban was notified by DGFT in the Commerce Ministry. Imports of milk and milk products candies, confectioneries and food preparations with milk as an ingredient.

The ban was notified by DGFT in the commerce Ministry, Imports of milk and milk products from china have been prohibited since september, 2008.

NEW DELHI, JUNE 27: THE State Trading Corporation (STC) has invited expressions of interest (EoIs) from parties for supplying it non-basmati parboiled rice for export to Bangladesh.

The tender is for supplying 50,000 tonnes.

The interested entities have to procure levy-free rice from all markets across the country at the rate which is closest possible to the minimum support  price (MSP) paid  to farmers.

The last date of submission of EoIs is july 90.

NEW DELHI, JUNE 27, HANDICRAFT exports grew by about 19 per cent to over $154.16 million in May as against $129.60 million during the same month of 2009, according to the Export promotion council for Handicrafts (EPCH).

The growth was aided by increased orders from the US buyers as their inventories are almost over, the EPCH chairman, Mr Raj Malhotra, said.

Besides major markets like the US and Europe, the exporters are now focusing more on Latin America.

NEW DELHI, JUNE, 24: ALTHOUGH  Commerce Ministry allowed special economic zone (SEZ) units to migrate to another SEZ, those shifting may face tax problems in the absence of specific guidance from tax authorities, tax experts aver.

This is because there exists no specific provision in the income-tax law dealing with such a situation, Hence, tax authorities may either allow the migrated unit to enjoy tax holidy for the unexpired period or deny it for the remaining period.

Hence, although the Board of Approvals (BoA) has given its in principle nod for such shifting, all such proposals will have to be placed before BoA for its consideration, Commerce Ministry sources said.

The BoA nod followed requests received by the government for shifting of SEZ units. These requests were considered but could not be acted upon because there are no specific provision under the SEZ rules for such shifts.

With consolidation of SEZS, shifting of units may become frequent and hence the entire issue was placed before BoA for its direction.

Though the income-tax provisions do not contemplate such migration, yet there is no restriction denying tax holiday to a SEZ unit on account of such migration one player poined out.

It would be good if the income -tax authorities could issue clarifications in order to avoid unnecessary hardship on taxpayers, he felt.

Another observer agreed that since there was no Specific provision dealing with the migration situation, the Central Board of Direct Taxes (CBDT) should clarify this position to avoid problems in future.

‘While the shifted units will not be able to restart the 15-year tax holiday, there are arguments to continue if for the balance period,” he stressed.

As it is, the draft of the direct taxes code (DTC) has cast a shadow over the attractiveness of the SEZ scheme because under the proposed DTc new units established after April 1, 2011, will not get tax concessions at all.

Nonetheless, the government wants to protect the profit -linked deduction at least for all the existing units (established before the proposed DTc came into effect).

INDIA’S exports grew for the seventh straight month, rising by 34 per cent to $16.1 billion in May 2010. This was led by a surge in shipments and prices of iron ore, along with flow of more consignments of engineering goods, gems and jewellery and chemicals from Indian shores.

The high level of industrial activity in the economy also meant that imports rose by over 38 per cent to $27.4 billion during the month under review, according to the data released by the Ministry of Commerce. A faster pace of increase in imports resulted in the deficit widening to $11.3 billion during May 2010. compared with $7.8 billion a year ago, part of the increase in exports and imports was attributed to last year’s low base.

The Eurozone crisis and the subsequent erosion in the value of the euro is a big worry for exporters at the moment. Over the past 12 months, the Indian rupee has appreciated from around 67 to a euro last. June to around 57 today.

During April-May 2010. exports grew by over 35 per cent to $33 billion against the same period last year, while imports were up by 41 per cent to $54.7 billion. Sectors such as engineering (29.6 per cent), gem & jewellery (37.8 per cent), leather (33.3 per cent), basic chemicals (38 per cent) and petroleum, oil and lubricants (over 70 per cent) led the show.

Trade deficit this year so far increased to $21.7 billion from $14.5 billion a year ago.

                               GOLD HITS NEW HIGH AT $1,258 PER OUNCE

Gold prices rallied to a record $1,258 an ounce in Europe on june 18, as demand for bullion as a haven for risk pushed the metal through technical stops near the previous high at $1,251.

Gold may climb to $1,300 an ounce this year as investment demand shifts from the euro and the dollar, The US and European currencies may lose their appeal as developed economies underperform emerging markets such as china. As there is no immediate replacement for the dollar and euro, demand for gold will grow.

The euro has slumped by 14 per cent against the dollar this year on concern that Europe’s debt crisis may spread, while gold denominated in the USurrenc has advanced by 13 per cent and is heading for its 10th annual gain.

Official sector sales of gold slumped by 82 per cent to 41 tonnes last year from 232 tonnes in 2008. In November 2009, India surprised markets with a $6.7 billion purchase from the IMF’s bullion holdings.

Gold may drop to $1,180 an ounce this year if investment demand slows, as rising prices curb consumption by jewellery makers and other fabricators.

                                          BANKS WITHDRAW RS 60,000 CR. FROM MFS

To meet the demand for credit from telecom companies to pay for third-generation licences, banks withdrew Rs 59,594 crore from mutual funds (MFs) during the fortnight ended June 4. According to the latest data from the RBI, banks’investment in MFs stood at Rs 50,563 crore at the end of june 4 as against Rs 1,10,157 crore at the end fo May 21.

As deposit mobilisation had been lower on an incremental basis,  banks had to withdraw from MFs  to meet the demand for credit. During the fortnight ended June 4, deposits growth was 14.3 per cent against the Central bank’s projection of 18 per cent cent for this financial year.

Banks also withdrew funds from government bonds, Their investment in in government bonds dipped by Rs 9,024 crore during the fortnight. Banks’ investment in MFs is likely to fall further in the coming fortnight as they withdraw money to meet capital norms at the end of the quarter.

As a result of huge demand, bank credit (food and non-food ) expanded by Rs 57.896 crore during the fortnight ended june 4 to Rs 32,88.074 crore. ON a year-on-year basis, it came close to RBI’s projection of 20 per cent for 2010-11 -credit grew by 19.1 per cent during the fortninght on a year-on-year basis.

                        FORES RESERVES UP BY $1,690 MILLION TO $2,72,783 MILLION

The value of the country’s foreign exchange reserves rose by $1,690 million to $2,72,783 million during the week ended june 11,2010, largely on account of foreign portfolio investors pumping in huge amount of dollars into the local market. Foreign currency assets rose by $1,689 million to $ 247241 million and SDR’s by $1 million to $4,821 million during the week under review, according to the Reserve Bank of India Bulletin Weekly Statistical Supplement. The reserve tranche with the IMF remained unchanged at $1,298 million and the value of gold in the reserves remained unchanged at $19,423 million during the week under review.

PARIS, JUEN, 24: THE  shortage of containers is pushing up equipment prices to new highs as fears grow that production will not be able to meet surging demand .

As both carriers and container leasing companies rush to place fresh orders to meet the demand, prices of new containers have soared to their highest levels in almost 20 years, says Alphaliner.

The price for a TEU now is $2,750, compared to less than $2,000 at the end of last year.

Even at these higher prices, demand will still outstrip supply for the current peak season. Container manufactures are facing difficulties in restoring full capacity following the halt in production of dry containers since October 2008.

Total capacity at the main container producers have been cut back significantly since late 2008, as production lines were shut and twin shift operations reduced to single shifts.

Although annual production capacity at the two largest container manufacturers, CIMC and Singamas, is over 3.5 million TEUs. these two suppliers are expected to produce only 1.35 million TEUs this year.

The global output of new containers is estimated at 1.5-2 million TEUs for the full year, as against the peak of 4.2 million TEUs produced in 2007 and a global capacity of five million TEUs Demand has picked up since the beginning of the year, with CIMC reporting sales of 102,900 TEUs of dryvan containers in the first quarter, up from 60,400 TEUs in the whole of 2009.

The price of new containers had risen containers had risen to its highest levels since 1991. The average price in the last 10 years was between $1,500 and $2,400.

Leasing companies are said to have accounted for 65 per cent of the 370,000 TEUs delivered up to April this year. up to April this year. Until the first quarter of 2010, some carriers still looked for sale and leaseback deals and leaseback deals for their container fleet… carriers are now also placing new orders as the current equipment stock has run to extremely low levels, reported Alphaliner.

Container manufacturing capacity in china is currently estmated at five million TEUs. The problem is that total production is expected to be less than two million TEUs in 2010 since factories are still struggling to resume production following its suspension in late 2008.

NEW DELHI, JUNE, 23: THE trade balance with the 10-member Asean countries has widened over the last eight years, despite a six-fold increase in trade, reveals an Assocham study.

The Commerce Department, however, feels that the growing imbalance is largely because India has started purchasing more oil and coal from the region.

It is only a shift of the trade deficit from countries that India traditionally bought fuel to the Asean region, The free trade agreement (FTA) with Asean will boost exports and cut the deficit, the Department is sure.

India-Asean bilateral trade increased to $46.1 billion in 2008 from $6.9 billion in 2000, points out the study. But the overall trade deficit with Asean countries has also increased to $7.3 billion in 2008 from $1.6 billion in 2000.

The study adds that if trade in services, such as logistics, transportation and tourism isconsidered, the trade deficit would be much higher, mainly because of the higher competitiveness of Asean’s imports and better trade practices.

The pact on services and investment being worked out between the two sides is expected to open up markets for services in the East Asian region.

While India and Asean have implemented the FTA in goods since the beginning of the year, the agreement on services and investment is still under discussion and is expected to be finalised within a few months.

NEW DELHI, JUNE 24: THE World Bank will provide assistance to the dedicated freight corridor (DFC) project as well as assist in other programmes related to sustainable development.

The Bank’s total lending to India would reach $9.3 billion in the financial year ending June, compared to $2.2 billion  lent by the Bank last year. (The World Bank follows july to Junne financial year).

Although this is a small sum for the country’s $ 1.2 trillion economy, it represents a sharp incrase from the amount lent last year. World Bank lending to India has traditionally averaged about $2.5-3 billion a year, a release pointed out.

In an effort to mobilise capital for infrastructure development, the government has asked the Bank to focus on the DFC project The project is, however, yet to be approved by the Bank’s Board of Directors.

“Going forward, we would focus on some large transformative projects, which would help the government achieve its aim of spending $300 billion towards infrastructure development during the current five-year Plan,” Mr Roberto Zagha, world  Bank country Director in India, said.

The lending includes a $2-billion package to provide capital to facilitate credit expansion of some public sector banks and prevent a shortfall of capital from affecting the economy in the wake of the global economic crisis, Mr Zagha explained.

The total lending of $9.3 billion includes $2.6 billion interest-free credit and $6.7 billion in the form of long -term, low interest loans spread across 25 new projects.

According to Mr Zagha, the rise in lending to India is mainly because “demand for additional infrastructure lending has been increasingly voiced by countries like India and china over the last few years and the Bank has been making sustained efforts to respond to it.”