Tea imports plunge 25 pc to 19.26 m kg in FY11

Tea Board data indicates that imports in the last fiscal plunged by more than 25 per cent to settle at 19.26 million kg.

According to the data, the country had imported 25.84 million kg of tea in the year-ago period.

Considering that India, the world's largest consumer of tea, imports the brew only to re-export to other countries, the decline in imports is a pointer to fall in re-exports.

Data shows that imports from Argentina, Canada, Kenya, Nepal, the UK and the US climbed, while inbound shipments from China, Indonesia, Iran, Malawi and Sri Lanka dipped.

A major fall was witnessed in tea imports from Vietnam. While in 2009-10, the country imported 7.21 million kg of tea from South-East Asian countries, in the last fiscal the figure slid to 0.72 million kg.

Similarly, exports from Indonesia to India dropped to 1.44 million kg in 2010-11 from 2.23 million kg in the earlier period.

Sri Lanka shipped less quantity to India in 2010-11 at 0.39 million kg from 0.93 million kg despatched in the year-ago-period.

As regards major tea exporting countries to India, Nepal sent 8.65 million kg in the past fiscal, against 7.47 million kg in the year-ago period.

Likewise, in 2010-11 shipments from Kenya to India stood at 4.51 million kg compared to 2.27 million kg the earlier year.

Exporters pin hopes on corporate India’s appeal to FM

EXPORTERS are counting on fresh representations by leading corporate houses to retain the popular Duty Entitlement Pass Book (DEPB) scheme, despite the Finance Ministry making it clear that it is not in favour of extending the scheme beyond June 30.

Finance Ministry estimates suggest that the DEPB drains about Rs 8,000 crore every year. The scheme neutralises the impact of basic and special Customs duties on the import content of exports. With the grant of duty credit against the export product under DEPB, exporters end up saving around 8-10 per cent on the cost of their exports.

Since it overcompensates exporters, the Finance Ministry feels DEPB is not WTO-compliant. It has asked exporters to fall back on the duty drawback facility, which does the same neutralisation by compensating for domestic taxes paid.

However, exporters are not too keen on lower duty drawback rates, as they feel that it under-compensates them because several domestic taxes are not considered. Both the Finance Ministry and the Commerce Ministry are of the view that all problems will be sorted out with the launch of the goods and services tax (GST).

But as GST may take a year to be implemented, exporters have once again begun lobbying with the Finance Ministry to extend DEPB. Their efforts have got a shot in the arm after the initiative of the industrial houses, who have taken up the matter with the Finance Minister, Mr Pranab Mukherjee. It is learnt that corporate leaders have made it clear to Mr Mukherjee that discontinuing DEPB would substantially hit
exports.

Keep fingers crossed on DEPB, Khullar tells exporters

EXPORTERS have been asked by the Commerce Ministry to "keep their fingers crossed" on their demand for extension of the duty entitlement pass book (DEPB), a tax neutralisation scheme on exports, beyond June 30.

Exporters have begun pressing their case with both the Commerce and Finance Ministries for continuation of the sops after the Revenue Department made it clear that the DEPB window would close from next month-end.

The Chairman of CII's National Committee on Exports, Mr Sanjay Budhia, pointed out that exporters across different sectors were worried as no alternative scheme was being offered in place of the DEPB.

According to an official, the Commerce Secretary, Dr Rahul Khullar, advised representatives of business chambers and export promotion councils, who called on him, to "keep their fingers crossed" as it was up to the Revenue Department to take the final call on the
issue.

Duty-free sugar imports allowed till March 31

The Union government has extended the zero-duty regime on refined and raw sugar imports till March 31. The move is aimed at arresting the galloping inflation.

In April 2009, the government removed import duty following a sharp decline in output to nearly 15 million tonnes against the annual domestic demand of 23 million tonnes.

After the zero-duty regime lapsed on December 31, 2010, it brought into effect the earlier duty structure of 60 per cent.

However, a fresh notification issued by the Central Board of Excise and Customs (CBEC) on January 8 extended the duty-free regime till March 31.

Meanwhile, the Food and Agriculture Minister, Mr Sharad Pawar, said that the Centre would start issuing permits for export of five lakh tonnes of sugar under open general licence (OGL) after January 30.

Mr Pawar denied any move to cancel the earlier decision to allow the exports of five lakh tonnes of the sweetener following the sudden rise in food prices.

The Directorate of Sugar on January 1 had issued detailed guidelines for export of the five lakh tonnes which was to be pro-rated among individual mills based on their average annual production for the last three years.

The guidelines stated that all applications by mills seeking release orders for their export entitlements "will be processed within 3 working days."

Mr Pawar's statement now that the permits would be issued only after January 30 means that the three working days processing time limit no longer holds. That effectively translates into a suspension of exports.

Imports of sensitive items rises by 14 % in April to October.

Imports of sensitive items increased by 14 per cent to Rs 40,499 crore during April-October 2010, with sharp increases in foodgrains, dairy products, edible oils, rubber and alcoholic beverages.

Rise in imports of crude edible oil increased the total oil imports to Rs15,882 crore, a 12 per cent rise when compared to the same period of 2009.

Dairy products imports trebled to Rs 536 crore in the seven-month period, while rubber imports increased by 93.1 per cent to Rs 977.24 crore.

Automobile imports more than doubled to Rs 1,249 crore, compared to Rs 583 crore in the same period of 2009.

Alcoholic beverages imports went up by 55 per cent to total Rs 102 crore.

Imports of cotton, silk and tea and coffee fell by 26.7 per cent and 19.5 per cent during the period to Rs 945.44 crore and Rs 149.19 crore, respectively.

The sensitive items are a list of more than 300 products crucial for the economy and are monitored by the Commerce Department on a regular basis.

Imports of sensitive items amounted to 4.6 per cent of the total imports during the period. Imports of sensitive items from Indonesia, China, Malaysia and the US have gone up, while those from Myanmar, Canada, Brazil and Japan have declined.

Gold imports up by 42 pc in Nov.

Gold imports shot up by over 42 per cent to total 39.8 tonnes in
November despite the ruling high price.

India, the world's largest consumer of the yellow metal, imported 28
tonnes during November 2009, according to data given by the Bombay
Bullion Association (BBA).

With the wedding season under way, prices would continue to reach
greater heights, the World Gold Council (WGC) Managing Director
(Middle East and India), Mr Ajay Mitra, said.

Natural rubber imports at concessional duty rates allowed

The Finance Ministry has allowed concessional imports of natural
rubber for the remaining part of 2010-11, a move that may help meet
the rising demand of the tyre industry.

As much as 40,000 tonnes of natural rubber can be imported till March
31, 2011, at a concessional Customs duty of 7.5 per cent, as against
the existing basic Customs duty level of 20 per cent, the Revenue
Department said.

The tyre industry had been demanding an import duty cut as they
struggled to pass on the rise in raw material costs to the end users.

Natural rubber imports during April-November 2010 totalled 1,43,468
tonnes, showing a 3 per cent increase over the same period of 2009.