Government gives nod to export extra 5 lakh tone sugar

As I have published previously, after the review of Director General of Foreign Trade The Union government has decided to permit export of an extra five lakh tonnes (lt) of sugar under the open general licence (OGL).

Approved by the Empowered Group of Ministers (EGoM), headed by the Finance Minister, Mr Pranab Mukherjee, the move is a shot in the arm for the domestic industry as it will be able to take advantage of rising global prices.

Taking $ 725 or Rs 32,575 as the price of a tonne, free-on-board, the effective realisation for exports from Maharashtra, after taking away Rs 2,000 towards freight and handling expenses at Jawaharlal Nehru Port or Mumbai Port, would work out to Rs 30,575, which is more than the prevailing ex-factory price of Rs 25,000 a tonne on domestic sales in Maharashtra or Rs 27,000 in Uttar Pradesh.

Of the five lakh tonnes quota permitted earlier, the Directorate of Sugar has already allocated 4.26 lt to individual factories and issued release orders for 4.21 lt, in addition to the 51,500 tonnes allotted to neighbouring countries.

Engineering goods exports jump to 119% in May

According to data released by the Engineering Export Promotion Council, engineering goods exports stood at $ 3.6 billion in May last fiscal.

Propelled mainly by increase in demand from traditional markets like the US and Europe, engineering goods exports posted a robust growth of 119.4 per cent to $ 7.9 billion in May, year-on-year.

Government to initiate action against ‘erring’ cotton exporters

The Commerce Ministry norms specify that cotton exporters who fail to transport the quantity allocated to them within the stipulated period, will be debarred from future allocations.

The Directorate-General of Foreign Trade (DGFT) has made it clear that it will initiate penal action against defaulting exporters.

It may be recalled that the government had to put a ceiling on exports through a quota in the wake of shortages.

While initially the quota allocation was 55 lakh bales (170 kg each), it was later augmented to 65 lakh bales. For the current season ending September, the government has given the nod for export of additional 10 lakh bales.

The DGFT mentions that "(exporter) shall be liable to pay a penalty of not less than Rs 10,000 and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more."

Food EGoM to make Decision on Export of sugar today

The Empowered Group of Ministers (EGoM) on food is meeting on Thursday (June 23) to decide on allowing more exports of sugar.

The meeting has reportedly been called at the behest of Mr Sharad Pawar, Union Agriculture Minister, who wants the government to permit exports of an additional one million tonnes of the commodity. Sugar mills too have sought permission to export more of the sweetener as production is expected to rise in the next season from October.

The country's sugar production is estimated at 24.2 million tonnes in the 2010-11 season, compared to 18.8 million tonnes in the previous season. In 2011-12, it is estimated to be 26-26.5 million tonnes.

India is the second-largest producer and the biggest consumer of sugar in the world.

Oil meal exports jumps 84 % due to record output

Due to record output of oilseeds in the 2010-11 crop year, oilmeal exports shot up by 84 per cent to 3.2 lakh tonnes in May 2011, compared to 1.73 lakh tonnes in the same month of last year.

In a statement, the Solvent Extractors' Association of India (SEAI) said that exports of oilmeal more than doubled to 8.21 lakh tonnes in the first two months of the current fiscal, compared to 3.77 lakh tonnes in the year-ago
period.

During April-May 2011, oilmeal imports by Japan from India climbed more than 300 per cent to 2.05 lakh tonnes from 48,887 tonnes in the year-ago period. Besides, Vietnam imported 1.10 lakh tonnes during the period under consideration against 41,853 tonnes in the same period of the previous year.

SEAI data indicates that oilmeal exports have climbed for seven months in a row in the current oil year (November 2010-October 2011).

Besides, exports have nearly doubled to 40.04 lakh tonnes in the current oil year till May, compared to 20.58 lakh tonnes in the same period of the previous year.

The Association attributes the continuous rise in exports to the sharp increase in oilseed output to 30.25 million tonnes in 2010-11, compared to 24.88 million tonnes in the previous year (2009-10).

The increased availability of oilseeds has led to higher crushing and output of oil and meals for domestic consumption and exports.

Export ban on wheat and rice to continue: Prof. K. V. Thomas

Also, Govt to take call on sugar exports only after Diwali

With India, the world's second-biggest food grains producer, going ahead with preservation of grains in order to supply food to consumers at below market prices under a new law, the Food Ministry has ruled out scrapping curbs on exports of wheat, rice and sugar.

In an interaction with newsmen, the Minister of State for Food, Prof. K. V. Thomas, said that the question of allowing exports does not arise considering that the government had to not only feed its own people, but also think about the country's consumption, which was on the rise.

With regard to sugar, Prof. Thomas said that the government had no plans to allow exports before Diwali, which falls in October. In a meeting with industry representatives, who were seeking enhancement of export quota by 1.5 million tonnes, Prof. Thomas said that the government would take a decision on exports only after reviewing the demands of the coming festive season and next year's estimated output.

According to Prof. Thomas, India may need as much as 70 million tonnes of rice and wheat to be supplied at subsidised rates to its citizens once Parliament gives its nod to the Food Security Bill. At present, "the government's grains requirement is around 60 million tonnes for various welfare programmes," he said.

It may be recalled that India banned shipments of wheat in early 2007 and non-Basmati rice in April 2008 to augment domestic supplies in the midst of a global food crisis. According to the Food Corporation of India, the state reserves of foodgrains totalled 65.6 million tonnes on June 1, which is almost triple the quantity five years ago.

On sugar, the Minister said the government was aware of the fact that the industry's estimate of sugar output has time and again been erroneous in recent times, leading to soaring prices at home. According to him, the output estimate for 2010-11 is 24.2 million tonnes, while for 2011-12 it is much higher at 29 million tonnes.

The Minister also firmly ruled out any possibility of relaxing the stock holding limit imposed on millers and traders with the intention of augmenting open market supply, pointing out that doing so in the past had resulted in hoarding and indirect pushing up of prices.

FIEO ask Government to Provide export credit at 7 % to MSMEs

Mr. Ramu S. Deora, President, Federation of Indian Export Organisations (FIEO), Commenting on the monetary policy review stressed that the interest rate increase by 25 basis points had only confirmed the worst fears of the export sector.

The FIEO chief pointed out that in the last 15 months, key policy rates had gone up 10 times, from 3.25 per cent to 7.50 per cent, impacting the growth momentum while making some leeway in reducing wholesale price inflation, which fell to 9.06 per cent in May, from 9.68 per cent a month ago.

"However, the flip side has been a moderation in the economic parameters, such as IIP declining to 4.4 per cent in April (against 8.8 per cent in March) and 4th quarter GDP dropping to 7.8 per cent, against 8.3 per cent recorded in the 3rd quarter," he said.

Mr. Deora contends that the macro-economic indicators of neither the United States nor Europe (with Greece approaching EU for a second bailout) are in the best of health and, therefore, there could be a correction in global commodity prices, which would mean a slowdown in exports. "Further, oil prices will continue to be a cause of concern and act as a 'drag' on the GDP," he fears. He highlighted the estimation of analysts that an increase of $10 a barrel in oil prices had the potential of raising the fiscal deficit by around 0.2 per cent of GDP.

The FIEO President expects banks to, sooner or later, beef up the cost of credit, which could touch 11.5 per cent for exporters compared to 7.1 per cent in July 2010, a jump of over 60 per cent in a year. "How will we compete with countries with interest rates ranging between 1-5 per cent?" he asks.

In order to maintain export momentum and immediately introduce interest subvention, Mr. Deora urged the government to distinguish between exports and domestic finance and provide export credit to the MSME sector at 7 per cent and to others at 9 per cent.

On exports, he elaborated that higher interest rates and their differentials (meaning more arbitrage opportunities and more FDI, which could result in rupee appreciation) hamper export competitiveness.

Mr. Deora said he looked forward to the Panel on Exports and FDI in the Planning Commission sizing up the situation in the Middle East (Libya/Syria/Bahrain) as well as the fragile state of the advanced economies, while addressing India's own inherent transaction costs, quantified at $ 13 billion by the Ministry of Commerce's High-Powered Committee, and draw up a package consistent with the requirements of the trade and the emerging economic realities.

Orders for export of Quantity 3.93 Lakh Tonnes sugar issued till date

The Sugar Directorate has said that the Union government has so far issued orders for release of 393,334 tonnes of sugar for exports under the Open General Licence Scheme (OGLS), an increase of 919 tonnes from June 9, when the last data was released.

According to the Directorate, 442 mills have been given permits to export sugar so far.

Last month, the government had decided to extend the time given to mills to apply for export release orders under the OGLS. Mills had been given time till June 2 to seek export permits, while merchant exporters could apply for release orders until June 17.

Exports are currently lucrative as global sugar prices have shot up in the past few weeks, due to crop concerns in Brazil and on port congestion, resulting in tight supplies in the world market.

Having touched a three-month high of $734.40 a tonne, the August white sugar contract on the London International Financial Futures and Options Exchange closed at $723.50 a tonne.

Planning Commission panel set up to boost exports and FDI (Foreign Direct Investment)

The Planning Commission (PC) has set up a working group to recommend government policies aimed at enabling the private sector to meet the targeted increase in exports.

The latest move is bit of a surprise as it has come at a time when the government has made it clear that it will not extend the Duty Entitlement Passbook scheme (DEPB) for exporters beyond September.

With PC member, Mr Saumitra Chaudhuri at the helm, the group will not only identify policy measures to attract more foreign direct investment (FDI), especially in the manufacturing and infrastructure sectors, but will also assess India's experience with FDI and foreign institutional investors.

The group would also assess existing schemes for export promotion, to explore various methods to further encourage private players.

Besides, the panel will take stock of the country's comparative advantages in trade, with specific reference to manufacturing goods and farm products, and whether these have moved over the past decade. In addition, it will make suggestions on how Free Trade Agreements and Comprehensive Economic Cooperation Agreements can be fitted into the framework of multilateral arrangements.

The group will take a view on the experience with special economic zones (SEZs) and other special trade facilitating measures, at a time when SEZ developers are voicing their disapproval of the government's bid to impose Minimum Alternate Tax (MAT) on them.

Lastly, the panel will take stock of market assess issues, including non-tariff trade barriers.

Extend DEPB till introduction of GST : FIEO ask Revenue Department

Appreciating the Revenue Secretary for consenting to Fieo's plea for extending (by three months) the Duty Entitlement Passbook (DEPB) scheme, Mr Ramu S. Deora, President, Federation of Indian Export Organisations (FIEO), called for the relevant notification to be issued immediately so that the uncertainty over the extension is brought to an end.

The FIEO President also suggested that the DEPB scheme should be allowed to continue till the introduction of the goods and services tax (GST), as it would not be possible to fix the drawback rates for all the products for which DEPB rates exist in the short span of three months.

In the long run, Mr Deora feels that the government should definitely bring all products under the All Industry Duty Drawback Scheme, and should make the industry bodies a party while fixing rates to ensure accuracy of data and transparency.

Exports up record 57 per cent in May

Exports in May 2011 jumped an all-time-high 57 per cent to $25.9 billion on the back of increasing exports of engineering goods, electronics, drugs and petroleum, among others.

However, imports also rose by a staggering 54.1 per cent to $40.9 billion due to rising prices of petroleum, widening the trade deficit to $15 billion in May.

"I am sure we will continue with strong performance so that current account deficit can be kept manageable," Commerce and Industry Minister, Mr Anand Sharma, said. On the rising import, the Minister added that since India is a major importer of petroleum products, the situation needs to be watched carefully.

Calling it a matter of concern, Commerce Secretary, Dr Rahul Khullar said the trade gap is much larger than it had been in the last 2-3 years, "...but I should be ready for the eventuality that this (trade gap) may turn out to be a feature for the next couple of months... if it is a recurrent feature for the next couple of months then I have to be concerned," he said.

Govt Approve for export of 10 lakh more cotton bales

THE relevant Group of Ministers (GoM) has taken the decision to allow exports of an additional 10 lakh bales of cotton during the current season, ending September.

Till date, around 52.5 lakh bales have already been shipped out since October, of the total export quota of 55 lakh bales (170 kg each) approved by the government for the 2010-11 season (October-September).

The GoM is chaired by the Finance Minister, Mr Pranab Mukherjee, and also comprises the Commerce and Industry Minister, Mr Anand Sharma.

Mr Sharma said that with the extra 10 lakh bales, total exports would touch 65 lakh bales by September-end.

On the rationale behind the decision, he said that while cotton supplies were reportedly more than the domestic demand, the GoM took the decision taking into account the commodity's domestic consumption, especially by the textile mills. It would seek more clarity after the arrival of fresh stocks in the market in October, he added.

Finance Minister gives DEPB 3-month extension for one last time

THE Duty Entitlement Passbook (DEPB), the popular-export incentive scheme, has got a three-month extension from the Finance Ministry. It was to end on June 30.

However, the Ministry has made it clear that exporters should brace themselves to switch to the duty drawback scheme by October as it would not grant any further extensions to DEPB.

According to a source, by permitting exporters to enjoy the benefits offered by DEPB for three more months, the government wants to ensure a smooth transition to the new scheme.

The source apprised that a three-member panel, comprising Secretaries from the Commerce and Finance ministries, would work out the modalities of migration to the duty drawback scheme.

Last week, the Finance Minister, Mr Pranab Mukherjee and Commerce Minister, Mr Anand Sharma met and discussed the issue and decided to extend the scheme.

It is a known fact that the Finance Ministry is firm on ending DEPB, contending that it allows exporters double benefit instead of just neutralising the import duty on inputs that go into exports.

In 2010-11, the scheme cost the exchequer Rs 8,520 crore, of which more than 60 per cent was exploited by large engineering and chemical exporters.

In contrast, the drawback scheme just neutralises levies paid on inputs. The rates are fixed annually, based on the changes in the duty structure in the Budget.

In this direction, an expert panel headed by Planning Commission member Mr Saumitra Choudhury will evaluate the duty drawback rates for all export products, including those covered under DEPB now.

Besides, the Finance Ministry has also asked the Commerce Ministry to direct export promotion councils to provide relevant data to the panel. The industry is not against the DEPB phase-out, as long as a substitute scheme is in place.

Fieo asks Mr. Anand Sharma for interest subvention, DEPB extension

DRAWING attention to the concerns over constant increase in export credit rate over the last one year, Mr Ramu S. Deora, President, Federation of Indian Export Organisations (Fieo), pointed out recently that exporters were competing with countries having credit rates below 5 per cent.

Speaking at an Interactive Session in Chennai recently, Mr Deora said that the base rate of Indian banks had moved up between 2-2.50 per cent in the last 7 to 8 months, pushing up export credit, but on the contrary, interest subvention for exports had been withdrawn from April 1, 2011.

According to the Fieo Chief, export finance cost, which was 7 per cent in July 2010, had now moved up to somewhere between 11-11.5 per cent, which is a whopping increase of about 57-64 per cent. Hence, Mr Deora urged the Commerce and Industry Minister, Mr Anand Sharma to prevail upon the government to draw the line between exports and domestic finance and make available export credit to the MSME sector at 7 per cent, and to others at 9 per cent in order to maintain export momentum.

On the DEPB scheme, Mr Deora acknowledged that it had been a time-proven instrument, helping Indian exports grow to the present level. "DEPB is well suited to the needs of small exporters, since it is not feasible for them to effect imports on their own account as economic volumes are not generated," Mr Deora said.

The Fieo chief observed that the uncertainty over continuation of the DEPB Scheme after June 30, 2011 had been a cause of concern to exporters, which could taper down growth. Hence, he urged Mr Sharma to extend the DEPB scheme till GST becomes operational or at least till the fiscal-end.

While suggesting a host of measures to cut transaction cost of exports, ranging between 7- 10 per cent of exports value, Mr Deora also alluded to the occurrences of long delay while ratifying the Norms for Advance Authorisation, issued under Paragraph 4.7 on self-declaration basis where SION does not exist.

Raising concern on the delays and paperwork involved in closure of advance authorisation at DGFT, the Fieo president contends that the same procedure should be put in force at the Customs also.

Mr Deora also asked the government to implement full EDI connectivity amongst the agencies involved in import/exports for seamless movement of cargo, which could go a long way in reducing transaction time and cost to a large extent.

Meanwhile, on the issue of DEPB extension and re-introduction of interest subvention, the Commerce Minister, Mr Sharma has made it clear that both issues have been taken up with the Finance Minister, who had given an assurance of adequately addressing the exporters' concerns.

Mr Sharma also announced that from now on the DGFT's zonal office would provide time-bound clearances, which would be audited every quarter. Besides, he also apprised that he was trying to make available the discharge of export obligations electronically in order to do away with the voluminous documents and delays.

The minister also assured that he would review the delays in imposition of provisional anti-dumping duty so that the same could be imposed in reasonable time, compared with the best practices. For providing commercial information to exporters, Mr Sharma agreed to strengthen commercial missions abroad and open more such missions.

With regard to the new manufacturing policy, Mr Sharma said it would be announced shortly with the aim of augmenting the share of manufacturing in GDP from 16 per cent to 25 per cent.

Sonia's PA asks PM to lift ban on cotton exports

MR Ahmed Patel, Political Secretary to Congress President, Ms Sonia Gandhi, has made a plea to the Prime Minister, Dr Manmohan Singh, to lift the ban on cotton exports to give much-needed relief to the country's farmers.

In a letter to the PM, he gave details of his communication with several Union Ministers, including Finance Minister, Mr Pranab Mukherjee, Textiles Minister, Mr Dayanidhi Maran and Commerce Minister, Mr Anand Sharma in this regard.

Mr Patel said lifting the ban on cotton exports would not only protect the interests of farmers in Gujarat, but will also benefit growers from other parts of the country, as cotton prices have nosedived by 30 to 40 per cent in the past two months.

He pointed out that cotton prices had plunged to Rs 42,000 per candy from Rs 63,000, which had come as a shock to traders, millers, ginners and eventually farmers.

Mr Patel highlighted that a third of India's total cotton output came from Gujarat, of which 50 per cent was exported "due to its superior quality".

In 2010-11, Gujarat produced 104.55 lakh bales of cotton, cultivated on 24.64 lakh hectares. "In case the ban is not lifted, it would ruin Gujarat's farmers", Mr Patel stressed, and added that with the onset of the monsoon farmers were left with no option but to sell their crops at low prices, given that they did not have a storage mechanism.

Export orders issued for 3.39l tonnes of sugar so far

Of the total export quantity of five lakh tonnes permitted by the government last month, the Food Ministry has issued export orders to mills for 3.39 lakh tonnes of sugar till date.

Sugar mills cannot go ahead with exports without obtaining a release order from the Food Ministry. It may be recalled that an Empowered Group of Ministers (EGoM) on Food, headed by the Finance Minister, Mr Pranab Mukherjee, had given the go-ahead to mills to export five lakh tonnes of sugar under Open General Licence (OGL) on March 22. The decision was notified on April 19.

Of the allotted quota, 51,500 tonnes was reserved for neighbouring countries and the balance 4,48,500 tonnes was allocated to the mills, based on their average output over the last three years.

Latest data shows that the Ministry has issued export release orders for 3,39,187 tonnes till June 1.

With production set to overtake domestic consumption after a gap of two seasons, the EGoM had resolved to allow sugar exports with quantity restriction of five lakh tonnes.

In the past, the government had permitted mills to fulfil their export obligations of about one million tonnes. The country's sugar output is estimated to surge to 24.5 million tonnes in the 2010-11 sugar year, from 19 million tonnes in the previous year. In terms of output, India is the second largest producer of sugar in the world after Brazil.

Handicrafts exports climb 14 pc in April

PROPELLED by growing demand from the US and European markets, handicrafts exports climbed by nearly 14 per cent to touch $ 204 million in April year-on-year.

According to the Export Promotion Council for Handicrafts (EPCH) data, exports during the same period of last fiscal stood at $179.9 million.

The Council expects exports growth to continue in the current fiscal.

The EPCH Executive Director, Mr Rakesh Kumar, said he expects exports to touch $2.7 billion in 2011-12 owing to increased demand not only from the US and Europe, but also from emerging markets like the Middle East, Latin America and Africa.

The US and Europe make up for nearly 60 per cent of India's handicrafts shipments.

The maximum growth in exports was registered by the following items: wood wares (26.9 per cent), imitation jewellery (21 per cent), shawls as art (19 per cent), miscellaneous handicrafts (15 per cent) and art metal wares (13.49 per cent).

Providing employment to one million people, cities such as Moradabad, Jaipur, Saharanpur, Jodhpur and Narsapur are the major hubs catering to world markets. In 2010-11 exports jumped about 26 per cent to $ 2.3 billion compared to the earlier fiscal.

Coffee exports jump 42.51 pc in Jan.-May

COFFEE exports surged 42.51 per cent to touch 1.81 lakh tonnes in the first five months of 2011, against 1.27 lakh tonnes in the same period of 2010.

In rupee terms, exports nearly doubled to Rs 2,546.95 crore compared to Rs 1,274.06 crore posted in the same period of 2010.

In dollar terms, the figure is up 107.89 per cent at $559.08 million against $268.92 million, while in terms of unit value realisation Indian coffee fetched Rs 1.41 lakh a tonne against last year's Rs 1 lakh a tonne.

Coffee Board statistics, as on May 31, indicate that Arabica parchment constituted 30,237 tonnes (last year's exports stood at 19,193 tonnes), exports of Arabica cherry was 7,476 tonnes (6,827 tonnes), Robusta parchment was 13,657 tonnes (11,058 tonnes) and Robusta cherry was 87,493 tonnes (56,847 tonnes). Besides, total exports of Indian instant coffee stood at 21,283 tonnes (11,798 tonnes), while re-exports added up to 21,005 tonnes (21,288 tonnes).

During the coffee year (October 2010 to May 2011), total exports stood at 2.47 lakh tonnes as compared to 1.71 lakh tonnes in the same period of the earlier year.

In rupee terms, exports amounted to Rs 3,286.46 crore against Rs 1,749.59 crore registered in the same period of the previous year.

In dollar terms, the final export figure was $716.75 million against $364.26 million, while unit value realisation amounted to Rs 1.32 lakh a tonne against last year's realisation of Rs 1.01 lakh a tonne.

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.

Exports maintain momentum in April, grow 34.4 per cent

Exports grew by 34.4 per cent on an annual basis to $23.8 billion in April, the first month of the 2011-12 fiscal, thus maintaining the growth momentum of the previous fiscal.

Imports were up 14.1 per cent at $32.8 billion in April year-on-year, leaving a trade gap of $8.9 billion, according to data released by the Commerce Ministry.

However, exports growth was lower in April compared to the robust growth of 54 per cent in March. The Commerce Secretary, Dr Rahul Khullar, however, played down the comparison to March. "March is always a peak month, I am not worried," he said.

In April 2011, crude oil imports grew by 7.7 per cent to $10.1 billion from $9.4 billion in the same month of last year. Non-oil imports also went up by 17.3 per cent to $22.6 billion from $19.3 billion.

The country's total merchandise exports had aggregated to $246 billion in 2010-11, growing by an impressive 37.55 per cent.

Imports during the just-concluded fiscal stood at $350 billion, down by 21.6 per cent, and the trade deficit was $104 billion.

Coir exports exceed target set for 2010-11

ON the back of escalating shipments to China, coir exports from India, valued at Rs 807 crore, have gone past the target set for the 2010-11 fiscal.

According to sources in the Coir Board, India exported coir valued at around Rs 807 crore in 2010-11 compared to the set target of Rs 800 crore, primarily due to increased exports to China.

Sources said that although shipments to China surged, there was a decline in exports to the US, the biggest market for the product from India for long. This is the second consecutive year that coir exports have crossed the target.

Cardamom exports may get a fillip due to dip in prices

Cardamom exports may get a fillip due to dip in prices

TRADERS and farmers are ill at ease due to the sudden decline in prices of cardamom in the ongoing lean season.

Following a high of Rs 1,500 per kg in the last two years, cardamom prices have been hovering between Rs 750 and Rs 800 per kg. Nonetheless, experts feel the low prices could boost exports.

Prices were lingering close to Rs 1,000 per kg some time back, but due to heavy supplies during the May lean season they plunged to around Rs 700 recently.

Mr P. C. Punnoose, General Manager, Kerala Cardamom Processing and Marketing Cooperative Society, blames the price fall on the early monsoon, which he feels has helped in boosting supply in the lean season.

"The new harvest season, which usually starts in July, may be advanced to June, resulting in low prices in the next few weeks," he contends.

In May last year, cardamom prices were hovering around Rs 1,100 per kg, subsequently climbing to Rs 1,500, before stabilising around Rs 1,000 per kg.

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.