KOCHI, AUG 30: There was all round increase in spices  export from the country in terms of value and volume as well as in forex earnings during April July.

During April-July, spices exports increased 12 pc in volume to 1,93,875 tonnes (1,72,510 tonnes), while the value realisation  was up 17 pc to Rs 2,084.96 crore (Rs 1,775.39crore). Spices exports fetched $454.10 million ($374.68 million ) in foreign exchange, registering a growth of 21 pc over last year.

Exports of Pepper, chilliginger, celery, fennel, garlic and other spices such as tamarind and asafoetida increased in volume.

The export of valueadded products such as curry powder, spice oils and oleoresins, also increased. However, in the case of small cardamom, turmeric, fenugreek, nutmeg and nut-mace, the increase has only been in value terms.

Few spices such as cumin, mint products and some seed spices decreased in volume and value. But the trend has been positive for most of the spices.

Chilli was the biggest item of export with volume growing to 77,750 tonnes realising Rs 481.41 crore. This was followed by mint and mint products exports that fetched Rs 388.01 crore, although volumes remained thin at 5,500 tonnes. Spice oils and oleoresins came next fetching Rs 294.28 crore on an export of 2,540 tonnes. Export realisation from turmeric has also grown repidly over last year to Rs 247.89 crore on an export volume of 18,350 tonnes.

Compared with the export target of 4,65,000 tonnes valued at Rs 5,100 crore ($1125 million ) for the  current fiscal, the achievement of 1,93,875 tonnes valued at Rs 2084.96 crore ($454.10 million) during April-July 2010 is 42 pc of the quantity, 41 pc of the rupee value and 40 pc of the dollar earnings target. If the trend issustained, the country is likely to surpass the targets set for the year, sources in the trade said.

NEW DELHI, AUG 30: Confidence returns after seeking delays in 2009 Ocean carriers that were trying to delay deliveries of ships a year ago are now pushing shipyards to bring forward construction dates as confidence returns to container shipping, according to a leading analyst order cancellations, deferrals, idling and scrapping excess tonnage, which were still key concerns for carriers as recently as the first quarter of this year, have now given way to renewed optimism.

“In stark contrast to last year’s tren trend to postpone the deliveries of new buildings, in some cases until 2014, some owners are currently seeking earlier delivery dates for 2012,” The record profits posted by leading carriers, including Maersk and Hapag-Lloyd, have encouraged some owners who are banking on an improved operating environment and attractive new building prices, coupled with rising second hand values, to return to shipyards for new orders.

“The container sector…. has been the driving force behind enquiries and this can be attributed in no small part to optimism in the markets generated by the strong earnings by the strong earnings announcements,” according to London broker Clarkson.

Unlike previous post-recession  rebounds, when charter ship-owners were prominent in placing orders, their share of new contracts is expected to fall significantly as a large majority are facing difficulties in raising financing.

Instead, ocean carriers are expected to take the lead in new vessel orders over the coming months.

Shipyards have taken orders for 44 container ships so far this year compared with just 15 during the whole of 2009, according to Clarkson.

But the current “boom,” inflated by Neptune Orient Line’s recent $1.2 billion order for 10 ships of 8,400 TEUs capacity and two 10,700 TEU vessels, marks a modest recovery compared with the 213 orders placed in 2008 and the 546 contracts signed in 2007.

The boom was deflated this week with the news that Evergreen Marine and South Korean shipyard STX offshore and shipbuilding called off negotiations over an order for a dozen 8,000 TEU ships.

NEW DELHI, AUG 30: India’s apparel exports declined for the third successive month in july, showing a 22.5 pc annual drop in contrast to recovery in the country’s overall exports which went up by 13.2 pc in the same month. The garments exports fell to $ 816 million in July on lesser demand from the US and European markets, according to the Apparel Export Promotion council (AEPC). “The demand from western markets like the US and Europe has still not revived as there is a slow recovery in these economies,” AEPC chairman premal Udani said.

The US and EU account for about 80 pc of the country’s total apparel exports, which aggregated to $10.64 billion in 2009-10. During April-July 2010-11, apparel exports declined by annual eight pc to $ 3.46 billion. Thanks to recovery in gems and Jewellery, the country’s overall exports went up by 13.2 pc in July to $ 16.24 billion.

During April-July, overseas shipments aggregated at $68.63 billion, up 30.1 pc over the same period last year. To reduce the depen -dence on traditional markets like the US and Europe, apparel exporters are exploring new markets in Japan, West Asia, Africa and Australia. While the government announced extension of the incentives under the Market Linked Focus  Product Scheme (MLFPS) to EU till March 31, 2011, the industry wanted that the relief be also provided for the shipments to the US as well.

Under the MLFPS, the exporters get two pc incentive on value of exports.

KOCHI, AUG. 29: SPICES exports during April-July 2010 increased by 12 per cent in volume and 17 per cent in rupee realisation when compared to the four-month period of 2009. In dollar terms, the increase was 21 per cent at $454.10 million.

According to figures released by the Spices Board, a total of 1,93,875 tonnes of spices and spice products valued at Rs 2,084.96 crore was exported during the 4 months, as against 1,725,510 tonnes valued at Rs 1,775.39 crore ($374.68 million) in the corresponding period of 2009.

Exports of peper, chilli, ginger, celery fennel, garlic and other spices  like tamarind have shown an increase an increase both in volume and value in the 4-month period under review as compared to April-July 2009.

Exports of value added products like curry powder and spice oils and oleoresin also increased.

There was also increased overseas demand for coriander.

Pepper exports went up by 2 per cent in volume terms to 6,750 tonnes, while the value realisation was higher by 8 per cent.

Chilli exports were higher by 24 per cent in volume and 27 per cent in value for the same period, while garlic exports were higher by 1,184 per cent in volume terms and 1,967 per cent in value in the four months under review.

MUMBAI, AUG, 29: DG Shipping said both the Mumbai and JN ports have been witnessing regular shipping movements, including night shipping.

The salvers and the Navy have detected a sunk container in the navigation channel and has since been suitably marked  by placing lighted buoy, the DGS said, The Mumbai and JNP ports opened for unescorted traffic last Monday, after the August 7 oil spill off the city coast caused by the collision of two foreign vessels– MSC Chitra and MV khalijia -3. Following the collision, both the prots were shut for traffic till Aug 12 with vessel movements resuming with Navy and Coast Guard escorts, which was discontinued on Aug 23.

SINGAPORE, AUG 26 : GLOBAL shipping industry groups have warned oil tankers and freight vessels to takeprecautionary measures when travelling in the south china Sea because of the recent spike in piracy.

Armed pirates have attacked at least five vessels, including chemical and LNG tankers, near the south-East Asian coast of Pulau Mangkai, Indonesia, recently.

Analysts said vessels in the region were likely to remain vulnerable, but the brigands were not expected to disrupt traffic on the key trading route.

“It is possible that more than one group of buccaneers were involved in the incidents, and they may strike again as they could still be lurking in the area,” a report said. Analysts say piracy in the south China sea has increased in recent years, accounting for around 16 per cent of worldwide sea attacks so far this month.

But the attacks, which usually involve gangs robbing crew members of their cash and personal belongings, are minorcompared to other regions.

“Unless there is a clampdown, the illicit activity may expan,” said one consultant.

NEW DELHI, AUG. 26: THE Solvent Extractors ‘Association of India (SEAI) has questioned the Union government’s decision to ban edible oil exports while allowing the export of its raw material and by products.

“Oilseeds (raw material) and oilmeals (by products ) are freely exportable. There is then no justification or logic to restrict export of edible oils,” SEAI said.

Following a shortage, the government had banned bulk export in early 2008, but shipments in consumer packs up to five kgtotal ling 10,000 tonnes per annum are still allowed to meet the demand of Indians living abroad.

The ceiling for the current oil year, ending October, has already been exhausted and as such, no quantity is available for export for three months.

The export of edible oil, if freely allowed, is unlikely to increase by more than 50,000 to 60,000 tonnes per annum, which is hardly 0.35 per cent of the total consumption of 145 lakh tonnes, SEAI pointed out.

Exports would help the industry recapture lost markets, it argued.

NEW DELHI, AUG 26: Rotterdam Rules which have taken years to put together and are now awaiting ratification by individual states cover an in credibly complex subject.

This will have a farreaching impact across the whole of maritimecommerce, said a official of a law firm.

There will barely be an untouched area, he  added. It warns that owners need to keep a close eye on who is signing and ratifying, if the US ratifies, the UK follows and china shows a renewed enthusiasm, there is a very good chance the Rules will achieve widespread adoption, Owners who are ahead of the game will probably steal a competitive advantage, while avoiding the extra costs that last minute solutions always bring.

The International chamber of shipping (ICS) which supports the ratification of the Rules as providing a modern legal framework for liability -also sees US ratification as key. BY replacing the current ‘patch work of maritime and unimodal conventions for road/rail/inland water transport, the unnecessary costs that inevitably arise out of legal complexity will be eliminated.

Many also think that, if the provisions in the Rules seeking to promote electronic bills of lading are successful, further cost reductions will be achieved. On the other hand, those opposed to the Rules say they  are poorly drafted. ill-conceived and too ambitious.

The Rules can no longer be changed, which means that they must either be adopted ‘as’is’or rejected in full. The Rules present both ’strategic threats and opportunities’ and it is essential that owners start planning for their possible introduction soon.

The Rules,he says, will require owners to undertake a review of all their contractual arrangements and operating procedures to ensure compliance.Where necessary, commercial, operational, insurance and legal staff will have to be given extensive training. The Rules will also have an impact on day-to-day cargo claims handling by shipowners and P&I Clubs.

The general average payments are due only to shipowners from cargo interests when there has been no breach of the contract of carriage. Under the new Rules, unlike the Hague and Hague visby Rules, an error of navigation or management of a ship does not constitute a breach of contract, provided due diligence to make the vessel seaworthy has been exercised. In the Rotterdam Rules, if a casualty causing cargo damage arises because of negligence of the master or crew, no general average contributions will be payable. so the occasions when general average can be declared are likely tobe greatly reduced.

There will be a period of increased claims activity and litigation as the courts seek to clarify the effect of the Rules in the real world In the short term, the overall effect will probably be to increase legal expenditure on cargo claims and waste management time, ‘Any body involved in container shipping at any senior level needs to read up on just what the Rules could mean for their business.

HEADLINE inflation rate, based on the wholesale price index, for july 2010 eased to a better than expected 9.97 per cent from 10.55 per cent a month ago, driven by a slowing in the rise of prices of manufactured items and food. The planning Commission expects the inflation rate to fall to 6 per cent by Decem ber 2010, helped by good rains. The provisional inflation rate for May 2010 was revised from 10.16 per cent 11.14 per cent Going by the past experience, the number for july 2010 is likely to be revised to 10.75 per cent.

There are additional upside risks to fuel prices, if the government follows through with its goal to liberalise diesel prices and further petrol price adjustments are seen.

RBI is unlikely to ease its stance on inflation in the forth coming monetary policy review (on September 16) as the current moderation is only tentative. Besides, real interest rates in India are widely negative and hence RBI is expected to raise interest rates steadily in its policy reviews.

EXPORTS UP BY 13 PC IN JULY 2010, SLOWEST IN NINE MONTHS

India’s merchandise exports rose in July 2010 at the slowest pace in nine months, reflecting the fading a favourable base effect and fragile demand recovery in developed markets.

Exports rose by 13.2 per cent in july 2010 to $16.24 billion from $13.62 billion a year ago. This does not compare favourably with a 30.4 per cent year -on-year increase in june 2010, as demand slackened for leather, electronic goods, readymade garments, tea and rice, Meanwhile, imports in July 2010 rose by a robust 34.3 per cent to $29.17 billion, from $19.62 billion in the corresponding month in the previous year, on the back of stronger domestic demand, As a result of much faster growth of imports than exports, trade deficit during july 2010 widened to $12.93 billion compared with $6 billion a year ago.

During the first four months (April-July) of 2009-10, exports were up by 30.1 per cent to $ 68.6 billion year-on-year. Cumulative imports, on the other hand, were up by 33.3 per cent to $112.2 billion, with a rise in demand for gold, machinery, iron and steel, chemicals, petroleum products and gems and jewellery, among others. Trade deficit this year so far narrowed down to $43.6 billion from $68.3 billion in the same period of 2009-10.

The second half of the current financial year would see a slump in demand for goods as recovery in the developed countries like the US and EU members has failed to gain momentum. Globally, developed countries are now pushing to promote their exports in the developing countries, Also, second half of the year will be a period when we will see calibrated withdrawal of the stimulus with aggregate demand taking a hit.

The country, however, is likely to achieve the set target of $200 billion worth of exports for 2010-11, even if exports grew at a steady 15 per cent from now on.

Financing of trade deficit may not be major concern because of strong net capital inflows. In FY 2011 current account deficit will be of 3.7 per cent of GDP, but a balance of payment surplus of $15 billion is expected.

Exports continue to grow because India is shipping more to Africa, Latin America, the Middle East and Asia.

MUMBAI, AUG 25: MR Ganesh Kumar Gupta, chairman of the synthetic and Rayon Textiles Export promotion Council (SRTEPC), welcoming the extension of the DEPB scheme till June 30,2011, hs pointed out that exporters can now take a long term perspective while negotiating business.

The FTP has also allowed the duty-free import of specified trimmings, embellishments etc, at the rate of 3 per cent on exports of polyester made-ups which SRTEPC had been pressing for, he added.

“I am glad that the government has accepted the council’s proposal and has given this facility, which will certainly give a big boost to the exports of made-up articles,” Mr Gupta hoped.

However, he pointed out that the facility had been restricted to exports of polyester made-ups and needed to be extended to the exports of all kinds of synthetic and blended made-ups.

The policy facilitated the issue of Advance Authorisation for physical exports and deemed exports under the same Customs Notification which would help exporters club these two authorisations.

Advance Authorisation and EPCG schemes were widely used by synthetic textile exporters and, therefore, these provisions would encourage exports from this sector, Mr Gupta observed.

According to him, other initiatives, like the removal of the requirement of Chartered Engineer Certificate for Advance authorisation on self declared basis, uploading the RCMC data by the EPCs on the DGFT’s website, inclusion of more licensed certifying authorities for digital signatures, etc., were all steps in the right direction, which would certainly reduce transaction costs and simplify procedures.