NEW DELHI, JUN 20 : The European Union has come to the rescue of Indian sugar industry by offering to import additional 6,000 tonne raw sugar against the preferential tariff.
With this preferential access for 6,000 tonne in place, the country can export 32,000 tonne sugar, including 10,000 tonne plantation white sugar.
Indian sugar industry has been lobbying with Brussels to increase the preferential quota access. In a discussion with the director in the European Commission ministry of agriculture and rural development, Russell Mildon last week, the EU agreed to give preferential access to additional 6,000 tonne raw sugar from India.
“We pleaded for augmentation of European preferential quota for import and we succeeded,” the director of Indian Sugar Mills Association, SL Jain told FE.
According to the data available till April, this year over 693,870 tonne sugar has been exported to 36 countries since the cane crushing began in October 2006. Industry has estimated a bumper sugar output of 28.5 million tonne in 2006-07 sugar year. With a carryover stock of 4 million tonne from the previous year and with a bumper production, the current year is likely to have a surplus of 13.5 million tonne after meeting the domestic consumption need of 19 million tonne. In this situation the industry is hard pressed with falling price and therefore seeking outlet for exports.
But the export front is not that remunerative with falling global prices for white plantation sugar. “Global prices for plantation white sugar is falling below $ 300 a tonne, while the prices of raw sugar is appreciating. We are, therefore keen on export of raw sugar. Many of the importing countries are setting by refineries and would need raw sugar,” said the director of National Federation of Cooperative Sugar Factories, Vinay Kumar.
Industry has already booked export contract orders for 235,000 tonne raw sugar to Dubai refineries. The export would commence from December, this year, he said.
Friday, June 22, 2007
Indian Inflation Slows to 13-Month Low on Food Prices (Update3)
June 22 (Bloomberg) -- India's inflation rate slowed to a 13-month low in the second week of June as prices of fruits, lentils and cereals declined, making it easier for the central bank to end its 2 1/2-year run of interest-rate increases.
Wholesale prices rose 4.28 percent in the week ended June 9 from a year ago, slowing from 4.8 percent the previous week, the Ministry of Commerce & Industry said in New Delhi today. Analysts forecast inflation at 4.45 percent.
June 22 (Bloomberg) -- India's inflation rate slowed to a 13-month low in the second week of June as prices of fruits, lentils and cereals declined, making it easier for the central bank to end its 2 1/2-year run of interest-rate increases.
Wholesale prices rose 4.28 percent in the week ended June 9 from a year ago, slowing from 4.8 percent the previous week, the Ministry of Commerce & Industry said in New Delhi today. Analysts forecast inflation at 4.45 percent.
Finance Minister Palaniappan Chidambaram wants to contain inflation without hurting economic growth, which he says is the antidote to poverty. India's central bank raised benchmark rates nine times since October 2004 to damp consumer demand and may now rely on the delayed effect of raising borrowing costs to a five-year high to rein in inflation.
``The decline in inflation definitely takes away a lot of discomfort at the government's level and obviously reduces pressure for immediate monetary policy action,'' said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
A pause in the Reserve Bank of India's policy of raising interest rates will help bolster economic growth. India's industrial production grew 13.6 percent in April, the government said on June 12. India's economy has averaged 8.6 percent growth since 2003, the second-fastest after China among the major economies, causing demand for manufactured and farm goods to outstrip supply and stoking prices.
The finance minister said it was too early to say whether inflation has been contained.
Too Early
``The monetary measures have had an impact but it is too early to reach any conclusion,'' Chidambaram said. ``We need to watch the situation over the next four-five weeks. I maintain that we must strike a balance between growth and inflation.''
The Reserve Bank of India will announce its next monetary policy on July 31. The central bank can announce rate changes before the scheduled monetary policy review, as it has done three times since December.
To combat inflation, the Reserve Bank has also allowed the rupee to gain to near a nine-year high to make imports cheaper. It has slowed dollar purchases on concern rupee funds injected from the exercise will stoke inflation.
Inflation is at its lowest since the week ending April 29 last year, when the rate was at 3.9 percent, according to data compiled by Bloomberg. It accelerated to 4.37 percent in the following week.
`Softening of Inflation'
``The Reserve Bank of India will definitely be comfortable with the softening of inflation,'' said Prasanna Ananthasubramaniam, a fixed-income analyst at ICICI Securities Ltd. ``The way inflation has behaved is in line with what the Reserve Bank has been saying.''
India's 10-year bonds advanced after inflation slowed more than expected. The yield on the 7.49 percent bond maturing in April 2017 fell 5 basis points this week to 8.23 percent at the 5:30 p.m. close in Mumbai, according to the central bank's trading system. The price rose 0.35, or 35 paise per 100-rupee face amount, to 95.06.
The yield, which moves inversely to the price, dropped to as low as 8.19 percent from 8.22 percent immediately after the report was released. A basis point is 0.01 percentage point.
To check prices of food grains, which have risen at almost twice the pace of manufactured product prices in the past year, the government removed the import duty on lentils in June 2006, and on wheat in September.
The government today revised the inflation rate for the week ended April 14 to 6.34 percent from 6.09 percent. The government revises the inflation rate after a delay of two months on additional price data. Week Ended Week Ended Percentage
June 9 June 2 Change
Primary articles 220.1 220.4 -0.1
Fuel, power 322.0 321.9 unchanged
Manufactured products 184.4 184.4 unchanged
Food articles 219.6 220.3 -0.3
Food products 183.4 183.2 0.1
Cement 212.3 212.4 unchanged
Edible oils 167.5 166.3 0.7
Fruits 261.9 265.4 -1.3
Lentils 246.6 248.5 -0.8
Cereals 203.8 205.0 -0.6
Total 211.8 211.9 -0.05
rates nine times since October 2004 to damp consumer demand and may now rely on the delayed effect of raising borrowing costs to a five-year high to rein in inflation.
``The decline in inflation definitely takes away a lot of discomfort at the government's level and obviously reduces pressure for immediate monetary policy action,'' said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
A pause in the Reserve Bank of India's policy of raising interest rates will help bolster economic growth. India's industrial production grew 13.6 percent in April, the government said on June 12. India's economy has averaged 8.6 percent growth since 2003, the second-fastest after China among the major economies, causing demand for manufactured and farm goods to outstrip supply and stoking prices.
The finance minister said it was too early to say whether inflation has been contained.
Too Early
``The monetary measures have had an impact but it is too early to reach any conclusion,'' Chidambaram said. ``We need to watch the situation over the next four-five weeks. I maintain that we must strike a balance between growth and inflation.''
The Reserve Bank of India will announce its next monetary policy on July 31. The central bank can announce rate changes before the scheduled monetary policy review, as it has done three times since December.
To combat inflation, the Reserve Bank has also allowed the rupee to gain to near a nine-year high to make imports cheaper. It has slowed dollar purchases on concern rupee funds injected from the exercise will stoke inflation.
Inflation is at its lowest since the week ending April 29 last year, when the rate was at 3.9 percent, according to data compiled by Bloomberg. It accelerated to 4.37 percent in the following week.
`Softening of Inflation'
``The Reserve Bank of India will definitely be comfortable with the softening of inflation,'' said Prasanna Ananthasubramaniam, a fixed-income analyst at ICICI Securities Ltd. ``The way inflation has behaved is in line with what the Reserve Bank has been saying.''
India's 10-year bonds advanced after inflation slowed more than expected. The yield on the 7.49 percent bond maturing in April 2017 fell 5 basis points this week to 8.23 percent at the 5:30 p.m. close in Mumbai, according to the central bank's trading system. The price rose 0.35, or 35 paise per 100-rupee face amount, to 95.06.
The yield, which moves inversely to the price, dropped to as low as 8.19 percent from 8.22 percent immediately after the report was released. A basis point is 0.01 percentage point.
To check prices of food grains, which have risen at almost twice the pace of manufactured product prices in the past year, the government removed the import duty on lentils in June 2006, and on wheat in September.
The government today revised the inflation rate for the week ended April 14 to 6.34 percent from 6.09 percent. The government revises the inflation rate after a delay of two months on additional price data. Week Ended Week Ended Percentage
June 9 June 2 Change
Primary articles 220.1 220.4 -0.1
Fuel, power 322.0 321.9 unchanged
Manufactured products 184.4 184.4 unchanged
Food articles 219.6 220.3 -0.3
Food products 183.4 183.2 0.1
Cement 212.3 212.4 unchanged
Edible oils 167.5 166.3 0.7
Fruits 261.9 265.4 -1.3
Lentils 246.6 248.5 -0.8
Cereals 203.8 205.0 -0.6
Total 211.8 211.9 -0.05
Wholesale prices rose 4.28 percent in the week ended June 9 from a year ago, slowing from 4.8 percent the previous week, the Ministry of Commerce & Industry said in New Delhi today. Analysts forecast inflation at 4.45 percent.
June 22 (Bloomberg) -- India's inflation rate slowed to a 13-month low in the second week of June as prices of fruits, lentils and cereals declined, making it easier for the central bank to end its 2 1/2-year run of interest-rate increases.
Wholesale prices rose 4.28 percent in the week ended June 9 from a year ago, slowing from 4.8 percent the previous week, the Ministry of Commerce & Industry said in New Delhi today. Analysts forecast inflation at 4.45 percent.
Finance Minister Palaniappan Chidambaram wants to contain inflation without hurting economic growth, which he says is the antidote to poverty. India's central bank raised benchmark rates nine times since October 2004 to damp consumer demand and may now rely on the delayed effect of raising borrowing costs to a five-year high to rein in inflation.
``The decline in inflation definitely takes away a lot of discomfort at the government's level and obviously reduces pressure for immediate monetary policy action,'' said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
A pause in the Reserve Bank of India's policy of raising interest rates will help bolster economic growth. India's industrial production grew 13.6 percent in April, the government said on June 12. India's economy has averaged 8.6 percent growth since 2003, the second-fastest after China among the major economies, causing demand for manufactured and farm goods to outstrip supply and stoking prices.
The finance minister said it was too early to say whether inflation has been contained.
Too Early
``The monetary measures have had an impact but it is too early to reach any conclusion,'' Chidambaram said. ``We need to watch the situation over the next four-five weeks. I maintain that we must strike a balance between growth and inflation.''
The Reserve Bank of India will announce its next monetary policy on July 31. The central bank can announce rate changes before the scheduled monetary policy review, as it has done three times since December.
To combat inflation, the Reserve Bank has also allowed the rupee to gain to near a nine-year high to make imports cheaper. It has slowed dollar purchases on concern rupee funds injected from the exercise will stoke inflation.
Inflation is at its lowest since the week ending April 29 last year, when the rate was at 3.9 percent, according to data compiled by Bloomberg. It accelerated to 4.37 percent in the following week.
`Softening of Inflation'
``The Reserve Bank of India will definitely be comfortable with the softening of inflation,'' said Prasanna Ananthasubramaniam, a fixed-income analyst at ICICI Securities Ltd. ``The way inflation has behaved is in line with what the Reserve Bank has been saying.''
India's 10-year bonds advanced after inflation slowed more than expected. The yield on the 7.49 percent bond maturing in April 2017 fell 5 basis points this week to 8.23 percent at the 5:30 p.m. close in Mumbai, according to the central bank's trading system. The price rose 0.35, or 35 paise per 100-rupee face amount, to 95.06.
The yield, which moves inversely to the price, dropped to as low as 8.19 percent from 8.22 percent immediately after the report was released. A basis point is 0.01 percentage point.
To check prices of food grains, which have risen at almost twice the pace of manufactured product prices in the past year, the government removed the import duty on lentils in June 2006, and on wheat in September.
The government today revised the inflation rate for the week ended April 14 to 6.34 percent from 6.09 percent. The government revises the inflation rate after a delay of two months on additional price data. Week Ended Week Ended Percentage
June 9 June 2 Change
Primary articles 220.1 220.4 -0.1
Fuel, power 322.0 321.9 unchanged
Manufactured products 184.4 184.4 unchanged
Food articles 219.6 220.3 -0.3
Food products 183.4 183.2 0.1
Cement 212.3 212.4 unchanged
Edible oils 167.5 166.3 0.7
Fruits 261.9 265.4 -1.3
Lentils 246.6 248.5 -0.8
Cereals 203.8 205.0 -0.6
Total 211.8 211.9 -0.05
rates nine times since October 2004 to damp consumer demand and may now rely on the delayed effect of raising borrowing costs to a five-year high to rein in inflation.
``The decline in inflation definitely takes away a lot of discomfort at the government's level and obviously reduces pressure for immediate monetary policy action,'' said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
A pause in the Reserve Bank of India's policy of raising interest rates will help bolster economic growth. India's industrial production grew 13.6 percent in April, the government said on June 12. India's economy has averaged 8.6 percent growth since 2003, the second-fastest after China among the major economies, causing demand for manufactured and farm goods to outstrip supply and stoking prices.
The finance minister said it was too early to say whether inflation has been contained.
Too Early
``The monetary measures have had an impact but it is too early to reach any conclusion,'' Chidambaram said. ``We need to watch the situation over the next four-five weeks. I maintain that we must strike a balance between growth and inflation.''
The Reserve Bank of India will announce its next monetary policy on July 31. The central bank can announce rate changes before the scheduled monetary policy review, as it has done three times since December.
To combat inflation, the Reserve Bank has also allowed the rupee to gain to near a nine-year high to make imports cheaper. It has slowed dollar purchases on concern rupee funds injected from the exercise will stoke inflation.
Inflation is at its lowest since the week ending April 29 last year, when the rate was at 3.9 percent, according to data compiled by Bloomberg. It accelerated to 4.37 percent in the following week.
`Softening of Inflation'
``The Reserve Bank of India will definitely be comfortable with the softening of inflation,'' said Prasanna Ananthasubramaniam, a fixed-income analyst at ICICI Securities Ltd. ``The way inflation has behaved is in line with what the Reserve Bank has been saying.''
India's 10-year bonds advanced after inflation slowed more than expected. The yield on the 7.49 percent bond maturing in April 2017 fell 5 basis points this week to 8.23 percent at the 5:30 p.m. close in Mumbai, according to the central bank's trading system. The price rose 0.35, or 35 paise per 100-rupee face amount, to 95.06.
The yield, which moves inversely to the price, dropped to as low as 8.19 percent from 8.22 percent immediately after the report was released. A basis point is 0.01 percentage point.
To check prices of food grains, which have risen at almost twice the pace of manufactured product prices in the past year, the government removed the import duty on lentils in June 2006, and on wheat in September.
The government today revised the inflation rate for the week ended April 14 to 6.34 percent from 6.09 percent. The government revises the inflation rate after a delay of two months on additional price data. Week Ended Week Ended Percentage
June 9 June 2 Change
Primary articles 220.1 220.4 -0.1
Fuel, power 322.0 321.9 unchanged
Manufactured products 184.4 184.4 unchanged
Food articles 219.6 220.3 -0.3
Food products 183.4 183.2 0.1
Cement 212.3 212.4 unchanged
Edible oils 167.5 166.3 0.7
Fruits 261.9 265.4 -1.3
Lentils 246.6 248.5 -0.8
Cereals 203.8 205.0 -0.6
Total 211.8 211.9 -0.05
Hotel companies lose revenue with weakening dollar
Rising rupee boosts import of hotel equipment
A stronger rupee vis-à-vis American dollar has affected the revenue collection of hotel companies as hotels selling rooms to foreign nationals are earning less with falling dollar rates. The INR has appreciated by 9.2 per cent in 2007 and is up 15 per cent from a three-year low of 47.04 in July last year. The dollar closed at Rs 40.575 at the time of filing this report.
Abinash Manghani, head (Sales & Marketing) of ITC Fortune Hotels, says, "There is a loss in earnings with more foreign guests as dollar exchange rate has come down in comparison to the Indian rupee." However, industry experts caution that such an escalation may have further bearing on foreign tourists coming to India as hotels might hike rates, making accommodation more expensive. Ram Kohli, CMD of Creative Travels & Resorts, says, "With hotel rooms selling at as high as USD 350 a room night, any additional rise in outlay will make destination India more high-priced."
Meanwhile, the rising rupee has boosted the import of foreign equipment. Sunil Khanna of Aster Technology, a supplier of foreign equipment to India, explains, "We are pleased with this situation as the prices of equipment, ocean/air freight and spare parts have fallen with consequent reduction in import duty and clearance charges. This has cushioned the impact of rising stainless prices. Since the import of Food Service Equipment is a big burden due to high landed cost, a more favourable exchange parity rate is a welcome relief."
Explaining lowering of import bills, Prem Subramanium, head of Infrastructure Development Finance Company (IDFC), says, "As far as hospitality equipment suppliers are concerned, Indians will find their import bills lowered. This has already had its impact on furniture and interiors as the majority of new rooms are kitted out with material from Malaysia and China." Conversely, export has been hit badly and its impact will be more apparent from July onwards.
Explaining further, Subramaniam says, "Groundhandling agents who have contracted in US dollars will have lower earnings while wholesalers who have contracted in rupees and need to use up more dollars to pay for services will suffer. Similarly, NRI/PIOs who are from dollar-earning environments will find their dollar fetching fewer rupees." He concludes, "We will continue to receive business visitors who will fill our hotels in cities but they are unlikely to extend their trip for a leisure extension or return for a leisure vacation. But fortunately we have an adequate increase in domestic tourists."
A stronger rupee vis-à-vis American dollar has affected the revenue collection of hotel companies as hotels selling rooms to foreign nationals are earning less with falling dollar rates. The INR has appreciated by 9.2 per cent in 2007 and is up 15 per cent from a three-year low of 47.04 in July last year. The dollar closed at Rs 40.575 at the time of filing this report.
Abinash Manghani, head (Sales & Marketing) of ITC Fortune Hotels, says, "There is a loss in earnings with more foreign guests as dollar exchange rate has come down in comparison to the Indian rupee." However, industry experts caution that such an escalation may have further bearing on foreign tourists coming to India as hotels might hike rates, making accommodation more expensive. Ram Kohli, CMD of Creative Travels & Resorts, says, "With hotel rooms selling at as high as USD 350 a room night, any additional rise in outlay will make destination India more high-priced."
Meanwhile, the rising rupee has boosted the import of foreign equipment. Sunil Khanna of Aster Technology, a supplier of foreign equipment to India, explains, "We are pleased with this situation as the prices of equipment, ocean/air freight and spare parts have fallen with consequent reduction in import duty and clearance charges. This has cushioned the impact of rising stainless prices. Since the import of Food Service Equipment is a big burden due to high landed cost, a more favourable exchange parity rate is a welcome relief."
Explaining lowering of import bills, Prem Subramanium, head of Infrastructure Development Finance Company (IDFC), says, "As far as hospitality equipment suppliers are concerned, Indians will find their import bills lowered. This has already had its impact on furniture and interiors as the majority of new rooms are kitted out with material from Malaysia and China." Conversely, export has been hit badly and its impact will be more apparent from July onwards.
Explaining further, Subramaniam says, "Groundhandling agents who have contracted in US dollars will have lower earnings while wholesalers who have contracted in rupees and need to use up more dollars to pay for services will suffer. Similarly, NRI/PIOs who are from dollar-earning environments will find their dollar fetching fewer rupees." He concludes, "We will continue to receive business visitors who will fill our hotels in cities but they are unlikely to extend their trip for a leisure extension or return for a leisure vacation. But fortunately we have an adequate increase in domestic tourists."
Indian Govt to allow plastic scrap imports? (22-6-2007)
The Indian Government is to review the policy on imported plastic scrap. This is likely to soften prices for manufacturers of commonly-used plastic articles, due to greater availability of a raw material alternative.
This will help plastic processing industry to develop and to compete with Chinese products in the world market.Currently the government now does not allow import of plastic scrap except for the units in SEZs, which are allowed to import them for export production.
The restriction is primarily due to the concern that India may become a dumping ground for plastic waste if imports are allowed freely.
The petrochemicals policy recently approved by the Cabinet, makes a strong case for reviewing this sensitive issue by the ministry of chemicals and fertilisers, the ministry of environment and forests and the ministry of commerce.
WTO to investigate Indian tariffs on U.S. wine, spirits
POTSDAM, Germany – The World Trade Organization is reviewing U.S. claims that Indian import duties unfairly discriminate against American wines and spirits, the trade body said Wednesday.
The WTO launched an investigation after the United States made a second request for the Geneva-based trade referee to rule on Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits. However, various government surcharges take the tariffs up to levels reaching as high as 550 percent.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
High import duties imposed on the vast majority of American wines and spirits by India means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought 23.3 million euros ($31.3 million) worth of European spirits in 2004 – from French cognac to Finnish vodka – and 4 million euros ($5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to 5 billion euros ($6.7 billion) and wine exports of 4.5 billion euros ($6.1 billion) each year.
The WTO launched an investigation after the United States made a second request for the Geneva-based trade referee to rule on Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits. However, various government surcharges take the tariffs up to levels reaching as high as 550 percent.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
High import duties imposed on the vast majority of American wines and spirits by India means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought 23.3 million euros ($31.3 million) worth of European spirits in 2004 – from French cognac to Finnish vodka – and 4 million euros ($5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to 5 billion euros ($6.7 billion) and wine exports of 4.5 billion euros ($6.1 billion) each year.
WTO to review Indian tariffs on U.S. spirits
POTSDAM, Germany: The World Trade Organization decided Wednesday to examine U.S. claims that Indian import duties unfairly discriminate against American wines and spirits.
The WTO launched its investigation after the United States made a second request for the Geneva-based trade referee to rule on the Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits. However, various government surcharges take the tariffs up to levels reaching as high as 550 percent, depending on the Indian state.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
But high import duties imposed on the vast majority of American wines and spirits means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought €23.3 million (US$31.3 million) worth of European spirits in 2004 — from French cognac to Finnish vodka — and €4 million (US$5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to €5 billion (US$6.7 billion) and wine exports of €4.5 billion (US$6.1 billion) each year.
It is unclear if the U.S. and the EU will seek to become co-complainants by combining their separate WTO cases.
The WTO launched its investigation after the United States made a second request for the Geneva-based trade referee to rule on the Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits. However, various government surcharges take the tariffs up to levels reaching as high as 550 percent, depending on the Indian state.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free. China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
But high import duties imposed on the vast majority of American wines and spirits means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought €23.3 million (US$31.3 million) worth of European spirits in 2004 — from French cognac to Finnish vodka — and €4 million (US$5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to €5 billion (US$6.7 billion) and wine exports of €4.5 billion (US$6.1 billion) each year.
It is unclear if the U.S. and the EU will seek to become co-complainants by combining their separate WTO cases.
WTO probes Indian wine, liquor tariffs
The World Trade Organization is reviewing U.S. claims that Indian import duties unfairly discriminate against American wines and spirits, the trade body said Wednesday.
The WTO launched an investigation after the United States made a second request for the Geneva-based trade referee to rule on Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits.
However, various government surcharges take the tariffs up to levels reaching as high as 550 percent.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free.
China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
High import duties imposed on the vast majority of American wines and spirits by India means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought 23.3 million euros ($31.3 million) worth of European spirits in 2004 -- from French cognac to Finnish vodka -- and 4 million euros ($5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to 5 billion euros ($6.7 billion) and wine exports of 4.5 billion euros ($6.1 billion) each year.
The WTO launched an investigation after the United States made a second request for the Geneva-based trade referee to rule on Indian fees applied to products such as Napa Valley wine and Jack Daniel's whisky, trade officials said.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
The U.S. says wine sales in India through special duty-free rules, such as at airports and luxury hotels, grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
Under WTO rules, the establishment of an investigative panel can only be delayed once. India blocked Washington's first request at the WTO's dispute body earlier this month.
Top U.S. and Indian trade officials meeting in Potsdam, Germany, for global commerce liberalization talks were unavailable for comment.
India's basic import duties on wine are 100 percent, while the tariff on spirits is 150 percent, both within WTO limits.
However, various government surcharges take the tariffs up to levels reaching as high as 550 percent.
The state of Tamil Nadu goes further still, shutting out foreign alcohol and allowing shops to sell only Indian-made spirits and wines.
The United States, the European Union and Japan, by contrast, allow nearly all spirits to enter their markets duty-free.
China tacks on only a 10 percent charge on foreign liquor.
The WTO is already reviewing a European legal challenge of wine and liquor restrictions in a number of Indian states. A WTO case can result in punitive sanctions being authorized, but panels take many months, and sometimes years, to reach a decision.
High import duties imposed on the vast majority of American wines and spirits by India means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
The 27-nation EU, in making its complaint, said India bought 23.3 million euros ($31.3 million) worth of European spirits in 2004 -- from French cognac to Finnish vodka -- and 4 million euros ($5.4 million) worth of Bordeaux, Chianti, Rioja and other European wines.
That compares with global European spirits exports amounting to 5 billion euros ($6.7 billion) and wine exports of 4.5 billion euros ($6.1 billion) each year.
Thursday, June 21, 2007
Major Asian Markets Close With Gains; Weaker Yen Supports Japanese Export-Related Shares - Asian Commentary
6/21/2007 8:26:15 AM Major Asian markets evaded the effect of an overnight fall on Wall Street and settled in the green on Thursday. A weaker yen came to save the Japanese market, while the decision by the Chinese government to expand qualified domestic institutional investor program, which would allow mainland brokers and fund managers to invest in off shore stock markets, came as a boon to the Hong Kong market.
However, Wall Street losses overnight disarmed the Australian and the New Zealand markets and drained their gains. The South Korean market returned to profit after the government decided to enact a cut in policy lending easing fears of rate-hike on inflationary warnings.
Japanese shares rose with the Nikkei index climbing a seven-year high, as a weaker yen with hopes of providing bountiful earnings to export-related stocks bailed the Japanese market out from initial losses due to an overnight fall on Wall Street. The benchmark Nikkei 225 share index added 28.62 points or 0.2% to close at 18,240.30.
The broader Topix index of all First Section issues edged up 5.66 points or 0.32 percent to 1,789.38.A rise in chip prices lifted chipmakers. Advantest climbed 1.2% and Elpida Memory surged up 4.4%. Tokyo Electron and Toshiba rose 1.9% and 2%, respectively.Stocks of steel makers climbed after reports of a rise in exports of the alloy to Asia in May. Japan Steel advanced 0.7% and JFE Holdings gained 1.1%. Kobe Steel jumped 2.5% and Nippon Steel rose 1.2%. Sumitomo Metal Industries surged up 3.4%. Mitsubishi Corp. soared 4.6% and Mitsui & Co. grew 3%.
Ishikawajima-Harima Heavy Industries and Mitsubishi Heavy Industries increased 3.4% and 1.5%, respectively.The Hong Kong market rose sharply on higher fund inflows even as the Chinese government relaxed the qualified domestic institutional investor program to include mainland brokers and fund managers, which raised hopes for more flow of funds. The relaxation is effective July 5. The benchmark Hang Seng index rose 270 points or 1.3% to close at 21,954.67.
The Hang Seng China Enterprises Index climbed 302.49 points or 2.5% to 12,207.97.Among properties, Cheung Kong gained 1.2% on news that Li Ka-shing, the chairman of the company increased his stake in Cheung Kong to 39.72% from 39.65%. While Sino Land declined 1.1%, Hang Lung Properties gained 0.9%.Hong Kong Exchange shot up 7.2%, as hopes of robust trading volume increased. Petro China jumped 3.2%. China Unicom and China Netcom surged up 2.1% and 2.9%, respectively.
China Mobile soared 2.4%.China Life vaulted 6.3% after Citigroup backed its “buy” call on the stock with a target price of HK$30.50.Australian shares ended with marginal losses, as the market was unarmed against the impact of a fall on Wall Street overnight due to a rise in bond yields that raised questions about the future of the U.S. economy. Moreover, bond yields in Australia had also risen.The benchmark S&P/ASX 200 index shed 9.9 points or 0.2% to close at 6,387.
The All Ordinaries index lost 9.10 points or 0.1% to 6,411.90.Coles Group slipped 2.1% after a fail in talks left TPG-led buyout group to abandon its plan to buy Coles. Wesfarmers, the sole bidder for Coles now, climbed 1.4%. Among financial stocks, ANZ Bank and Commonwealth Bank lost 0.5% each. Macquarie Bank was down 0.1% and National Australia Bank dropped 0.4%.
In the mining sector, BHP Billiton jumped 1.6%, but Rio Tinto declined 1%. Fortescue Metals and Iluka surged up 4.4% and 4.6%, respectively.Brambles plunged 4.4% after Goldman Sachs opined differently against the company's expectations for progressive profitable current fiscal year.
Flight Centre jumped 3.2%, as the company announced a lucrative offer of A$16 per share to its shareholders through a share buyback after the sale of its assets to buyout firm Pacific Equity Partners. New Zealand shares ended with losses, as an overnight fall on Wall Street cast a blight on the New Zealand market.
The benchmark NZX 50 share index fell 22.60 points or 0.5% to close at 4,300.57. Tourism Holdings shed 0.4% after MFS Living and Leisure Group announced that it would neither increase its offer for Tourism Holdings nor extend the deadline of July 21.
Air New Zealand plunged 3.3% after the company reported a weak return from its investments due to a seasonal winter downturn. The company reported that year-to-date group yields in May grew 8.5%, compared to 9.6% in April year-to-date.Lower net migration and higher interest rates are seen as adversaries of housing market.
Kiwi Income Property and Macquarie Goodman Property ended flat. Property For Industry lost 0.7%, but ING Property Trust gained 0.8%.Sky City fell 1.6%. The company revealed the sale of its Metro cinema building in Auckland for NZ$55.1 million to Orchard Funds Management. Sky said it would lease back the property.
South Korean shares rose, as the government's decision to reduce policy lending by one-fifth to small and medium-sized companies seemed to console the market, which was gripped by fears of rate-hike after experts warned of inflationary pressures.The key Korea Composite Stock Price Index gained 10.45 points or 0.6% to close at 1,794.24 after moving between 1,770.17 and 1,802.91.
Woori Finance jumped 3.9% after the government sold a 5% stake in the company for US$990.3 million. Shinhan Group advanced 0.9%, but Kookmin Bank lost 1.1%. Hyundai Securities gained 3.3% and Samsung Securities climbed 5%. Shares of auto companies climbed after South Korea clarified at the U.S. International Trade Commission that the country's auto market remains open to international community.
Kia Motors jumped 3.1%. Reports said the company plans to offer benchmark-sized dollar debt of five-year bonds. S&T Motors surged up 7.7% and Ssangyong Motor increased 2.9%, but Daewoo Motor Sales shed 0.3%. Hyundai Motor improved 1.5%. The Chinese market rose on the strength of A-shares, which gained on financial and utility stocks.
The key Shanghai Composite Index rose 49.50 points or 1.2% to close at 4,230.82.China Life Insurance shot up 8.3%. Ping An Insurance jumped 4.6% after the company announced that its plan to merge two of its units was approved by the China Banking Regulatory Commission.
In the utility space, SDIC Huajing Power Holdings rose by its 10% daily limit and Beijing Jingneng Thermal Power too rose by the same level. Guangxi Guidong Electric Power also gained the 10% limit.
However, Wall Street losses overnight disarmed the Australian and the New Zealand markets and drained their gains. The South Korean market returned to profit after the government decided to enact a cut in policy lending easing fears of rate-hike on inflationary warnings.
Japanese shares rose with the Nikkei index climbing a seven-year high, as a weaker yen with hopes of providing bountiful earnings to export-related stocks bailed the Japanese market out from initial losses due to an overnight fall on Wall Street. The benchmark Nikkei 225 share index added 28.62 points or 0.2% to close at 18,240.30.
The broader Topix index of all First Section issues edged up 5.66 points or 0.32 percent to 1,789.38.A rise in chip prices lifted chipmakers. Advantest climbed 1.2% and Elpida Memory surged up 4.4%. Tokyo Electron and Toshiba rose 1.9% and 2%, respectively.Stocks of steel makers climbed after reports of a rise in exports of the alloy to Asia in May. Japan Steel advanced 0.7% and JFE Holdings gained 1.1%. Kobe Steel jumped 2.5% and Nippon Steel rose 1.2%. Sumitomo Metal Industries surged up 3.4%. Mitsubishi Corp. soared 4.6% and Mitsui & Co. grew 3%.
Ishikawajima-Harima Heavy Industries and Mitsubishi Heavy Industries increased 3.4% and 1.5%, respectively.The Hong Kong market rose sharply on higher fund inflows even as the Chinese government relaxed the qualified domestic institutional investor program to include mainland brokers and fund managers, which raised hopes for more flow of funds. The relaxation is effective July 5. The benchmark Hang Seng index rose 270 points or 1.3% to close at 21,954.67.
The Hang Seng China Enterprises Index climbed 302.49 points or 2.5% to 12,207.97.Among properties, Cheung Kong gained 1.2% on news that Li Ka-shing, the chairman of the company increased his stake in Cheung Kong to 39.72% from 39.65%. While Sino Land declined 1.1%, Hang Lung Properties gained 0.9%.Hong Kong Exchange shot up 7.2%, as hopes of robust trading volume increased. Petro China jumped 3.2%. China Unicom and China Netcom surged up 2.1% and 2.9%, respectively.
China Mobile soared 2.4%.China Life vaulted 6.3% after Citigroup backed its “buy” call on the stock with a target price of HK$30.50.Australian shares ended with marginal losses, as the market was unarmed against the impact of a fall on Wall Street overnight due to a rise in bond yields that raised questions about the future of the U.S. economy. Moreover, bond yields in Australia had also risen.The benchmark S&P/ASX 200 index shed 9.9 points or 0.2% to close at 6,387.
The All Ordinaries index lost 9.10 points or 0.1% to 6,411.90.Coles Group slipped 2.1% after a fail in talks left TPG-led buyout group to abandon its plan to buy Coles. Wesfarmers, the sole bidder for Coles now, climbed 1.4%. Among financial stocks, ANZ Bank and Commonwealth Bank lost 0.5% each. Macquarie Bank was down 0.1% and National Australia Bank dropped 0.4%.
In the mining sector, BHP Billiton jumped 1.6%, but Rio Tinto declined 1%. Fortescue Metals and Iluka surged up 4.4% and 4.6%, respectively.Brambles plunged 4.4% after Goldman Sachs opined differently against the company's expectations for progressive profitable current fiscal year.
Flight Centre jumped 3.2%, as the company announced a lucrative offer of A$16 per share to its shareholders through a share buyback after the sale of its assets to buyout firm Pacific Equity Partners. New Zealand shares ended with losses, as an overnight fall on Wall Street cast a blight on the New Zealand market.
The benchmark NZX 50 share index fell 22.60 points or 0.5% to close at 4,300.57. Tourism Holdings shed 0.4% after MFS Living and Leisure Group announced that it would neither increase its offer for Tourism Holdings nor extend the deadline of July 21.
Air New Zealand plunged 3.3% after the company reported a weak return from its investments due to a seasonal winter downturn. The company reported that year-to-date group yields in May grew 8.5%, compared to 9.6% in April year-to-date.Lower net migration and higher interest rates are seen as adversaries of housing market.
Kiwi Income Property and Macquarie Goodman Property ended flat. Property For Industry lost 0.7%, but ING Property Trust gained 0.8%.Sky City fell 1.6%. The company revealed the sale of its Metro cinema building in Auckland for NZ$55.1 million to Orchard Funds Management. Sky said it would lease back the property.
South Korean shares rose, as the government's decision to reduce policy lending by one-fifth to small and medium-sized companies seemed to console the market, which was gripped by fears of rate-hike after experts warned of inflationary pressures.The key Korea Composite Stock Price Index gained 10.45 points or 0.6% to close at 1,794.24 after moving between 1,770.17 and 1,802.91.
Woori Finance jumped 3.9% after the government sold a 5% stake in the company for US$990.3 million. Shinhan Group advanced 0.9%, but Kookmin Bank lost 1.1%. Hyundai Securities gained 3.3% and Samsung Securities climbed 5%. Shares of auto companies climbed after South Korea clarified at the U.S. International Trade Commission that the country's auto market remains open to international community.
Kia Motors jumped 3.1%. Reports said the company plans to offer benchmark-sized dollar debt of five-year bonds. S&T Motors surged up 7.7% and Ssangyong Motor increased 2.9%, but Daewoo Motor Sales shed 0.3%. Hyundai Motor improved 1.5%. The Chinese market rose on the strength of A-shares, which gained on financial and utility stocks.
The key Shanghai Composite Index rose 49.50 points or 1.2% to close at 4,230.82.China Life Insurance shot up 8.3%. Ping An Insurance jumped 4.6% after the company announced that its plan to merge two of its units was approved by the China Banking Regulatory Commission.
In the utility space, SDIC Huajing Power Holdings rose by its 10% daily limit and Beijing Jingneng Thermal Power too rose by the same level. Guangxi Guidong Electric Power also gained the 10% limit.
Ministry said. If it continues to grow at the same rate – ten-fold that of 2004 – China’s trade surplus this year will reach US$320 billion, according
Beijing, China, 21 June – China said Wednesday it would reduce export incentives for thousands of products in order to reduce its foreign trade surplus, with analysts predicting a rise in prices for foreign consumers.From July 1, Beijing will reduce or bring an end to incentives to export over 2,800 products such as toys, cement and fertilizer, the Chinese Finance Ministry said in a statement published on its webpage.With this measure, the authorities aim to reduce the excessive growth of exports, reduce friction with trading partners and control industries that consume high amounts of energy, the Ministry said. If it continues to grow at the same rate – ten-fold that of 2004 – China’s trade surplus this year will reach US$320 billion, according to analysts.The unequal balance of trade has already led the European Union and the United States to introduce tariffs and other measures to try to reduce the trade deficit with China.Washington has also accused Beijing if keeping the yuan at artificially low levels to increase the competitive advantage of its products in international markets. (macauhub)
Subscribe to:
Posts (Atom)
