Shipping ministry has estimated investment to drop to Rs 51,036.56 crore. The shipping ministry has estimated private players would invest Rs 51,036.56 crore in the port sector during the 12th Five Year Plan, six per cent less than the previous plan perio

G K Vasan, Union Minister for Shipping, said, “We have prepared a report on the sector and submitted the same to the Planning Commission for consideration and approval.”

According to the proposal, the total outlay, excluding private investments, is Rs 26,021.64 crore. This includes government-run or major ports’ investment of Rs 22,757.39 crore, while the balance is for Dredging Corporation of India, Andaman Lakshadweep Harbour Works and Sethusamudram Corporation.

Vasan said the report was under consideration. “Hence, details on investments and allocations can be stated only after the Commission’s approval.”

During the 11th Five Year Plan, the total investment in the sector stood at Rs 87,995 crore, four per cent of the total infrastructure investment during the period. Of this, Rs 54,479 crore, or 61.91 per cent, was from the private sector.

These investments were to create new capacity of 485 mmt in major ports and 345 mmt in minor ports. During the 10th Five Year Plan, the total investment was Rs 14,071 crore. Of this, private players accounted for Rs 10,356 crore.

According to a report by ICRA, cargo growth at Indian ports was around four per cent last year. While growth in cargo volumes at major ports was 1.6 per cent, non-major ports reported nine per cent rise. In terms of market share, non-major ports increased their share to 35 per cent, from 34 per cent.

Indian ports are expected to handle one billion tonnes of cargo in 2011-12, two billion tonnes by 2016-17 and 2.4 billion tonnes by 2019-20.

Growth at non-major ports is expected to outpace that at major ports, with the former commanding a 51 per cent share of the total cargo in a decade. By composition, coal and containers are expected to drive much of the growth, according to ICRA.

By T. E. Narasimhan (business-standard)

 

Views on world economic climate hit fresh lows, ICC survey reveals

The world economic climate has worsened in the fourth quarter, as indicated by increasingly negative expectations from economic experts, according to the World Economic Survey (WES) published by the International Chamber of Commerce (ICC) and the Munich-based Institute for Economic Research (IFO).

 

The poll asked 1,119 economic experts from business and academic institutions to assess current and expected economic developments across 119 countries last month. Their answers were analysed to reach a quarterly figure representative of the current economic climate.

 

Views on the world economic climate fell from a second quarter high of 107.7 points to 78.7 in the fourth quarter, marking the lowest point in the last two years. The falling figures reflect the waning optimism of expert expectations for the future, recording consecutive drops from 110.5 in the first quarter to 71.9 in the fourth quarter. Expert assessment of the overall current economic situation fell from a second quarter high of 108.4 to a year low of 86.

 

"These results demonstrate the fragile state of the financial sector, particularly in public finance, and underscore the threat that the still relatively strong real economies of many countries could slide into recession," said the ICC Secretary-General, Mr Jean-Guy Carrier.

 

"However, it is not too late to avoid this destructive scenario if governments worldwide, and particularly in the euro area, succeed in convincing markets that the right decisions are being made," Mr Carrier said.

 

In North America, the economic climate further deteriorated, with the current economic situation increasingly assessed as unfavourable. The expectations in the region for the next six months were less confident than in the third quarter but remained in positive territory, the report indicates. In Asia, the economic climate indicator has fallen further and is now below its long-term average. Expectations for the next six months continued to worsen in the region. And in Western Europe, a significantly more negative outlook was also brought on by a worsening economic climate.

 

"An interesting point of the recent results is that ‘lack of confidence in governments’ economic policy’ was regarded worldwide as the single most important problem for the first time since the survey was established exactly 20 years ago," said Mr Gernot Nerb, IFO Director of Business Surveys.

 

This lack of confidence in government economic policy replaced "public deficits" as the number one problem revealed by one of the previous surveys, in spring this year, and "unemployment" in the survey one year ago, Mr Nerb said.

 

The inflation estimate for all of 2011 remains at 4 per cent on a global average, and the majority of WES experts expect unchanged interest rates over the course of the next six months.

 

In terms of currency, WES experts also agreed that the euro is overvalued and the yen comparatively more so. On a worldwide average, the exchange rate of the dollar is expected to remain largely stable over the next six months.

 

Source : Exim News Service - PARIS, Nov. 27

 

MICT handles largest container vessel to call an Indian port

The Mundra International Container Terminal (MICT), on November 24, berthed the m.v. APL Italy, the largest container vessel that has ever called at an Indian port in terms of both length and capacity. According to an official release, the vessel has an overall length (LoA) of 332 m and container carrying capacity of 8,402 TEUs.

 

The vessel was welcomed by Capt. Ramji S. Krishnan, CEO of MICT, who presented a memento to the Master on board. "Arrival of such vessels is a milestone for Mundra International Container Terminal, which will boost the ex-im trade in and out of Gujarat and India as a whole," he said.

Mr Cherian Abraham, GM-Operations, MICT, commented: "APL is one of our most esteemed customers and we are happy to render our best services."

 

Mr Vilson Kurien, Operations Manager of MICT, was also among those present on the occasion .m.v. APL Italy sailed out of the terminal on November 25 after exchanging 1,250 containers.

 

The MICT management thanked APL, particularly Capt. R. Shroff, for bringing the vessel to the terminal. Mr Cherian Abraham observed that it was only due to the excellent cooperation extended by the Railways, Customs, port authorities, CHAs, CTOs, CFSs and its own staff that MICT had been able to cross many milestones.

 

Source : Exim News Service - MUNDRA, Nov. 27

India's rice exports revised upwards to 5-year high

IN view of the strong demand from Indonesia and African countries, the International Grains Council (IGC) recently jacked up its forecast on India’s rice exports by 4.7 per cent to a five-year high of 4.5 million tonnes for the current marketing year, which commenced from October 1.

 

Despite the expected rise in exports, IGC also revised its forecast upwards by 10 per cent for India’s closing stocks on September 30, 2012 to 22.2 million tonnes, as against the previous estimate of 21.9 million tonnes, on account of the likely record production of 101 million tonnes.

 

IGC has estimated the country’s rice production to surge by 6 per cent this year. In terms of price, Indian rice is presently about $ 200 a tonne cheaper than that of Thailand where a government procurement programme resulted in pushing up the prices.

 

Source : Exim News Service - SINGAPORE, Nov. 27

 

Sensitive items imports rise 42 pc in April-Aug.

Imports of sensitive items, including pulses and edible oils, went up by 42.2 per cent to Rs 40,281 crore in the April-August period this year. Sensitive items imports were valued at Rs 28,317 crore in the corresponding year-ago period.

 

Import of pluses soared to Rs 3,342.95 crore during the period from Rs 3,280 crore in April-August 2010, a Commerce Ministry official said. India is a net importer of pulses.

Imports of products of small-scale industries, such as umbrellas, locks, toys and glassware, went up by 48.6 per cent to Rs 839.84 crore, compared to the year-ago period. Automobile imports jumped by 103.5 per cent in April-August 2011, to Rs 1,606.5 crore from Rs 789.67 crore in the same period last year.

 

Imports of edible oils rose by 66 per cent to Rs 18,243.88 crore in April-August 2011, from Rs 10,998.28 crore in the year-ago period. India is the world's largest importer of edible oils and one of the largest consumers.

During the first five months of the current fiscal, the import of items such as alcoholic beverages and spices also increased by 47.5 per cent and 68.3 per cent, respectively.

 

However, imports of foodgrains, milk and milk products, and tea and coffee contracted by 93.4 per cent, 28.4 per cent, and 10.2 per cent, respectively. Milk and dairy products imports declined to Rs 282.9 crore in the review period from Rs 395 crore in April-August 2010.

 

Items such as foodgrains, automobiles, milk and beverages fall in the sensitive category. The import of these goods is monitored by the government to see if there is any adverse impact on the domestic industry.

 

 

Source : Exim News Service - NEW DELHI, Nov. 27

DAMCO wins "Supply Chain Best Partnership" award 2010-11

DAMCO, one of the world’s leading providers of freight forwarding and supply chain management solutions, was honoured at the SCM Logistics Excellence Awards, held in conjunction with the 7th Annual SCM Logistics World Conference in Singapore.

 

The company won the "Supply Chain Best Partnership" award for outstanding contribution in supply chain partnerships.

"Damco is a provider of supply chain solutions and logistics services that have played a significant role in driving supply chain and logistics excellence in their client organisations, resulting in improved business performance," said Ms Lynette Han, conference organiser and General Manager, Terrapinn.

 

She stressed that the award illustrated the importance and significance of supply chain partnerships, particularly during volatile economic scenarios and when facing fast-changing market demands. "Winners of this award are organisations who have gone beyond the conventional terms of their contracts and business deals to help and support their clients in mitigating the challenges of a volatile economy, as well as the ever-changing business and consumer landscape," she added.

 

Delegates at the conference and supply chain practitioners around the world cast their votes through a global voting system. Organisations were voted based on their track record in assisting clients to cut supply chain and logistics costs, and develop an integrated supply chain. Companies were also assessed on service performance in terms of credibility, reliability and capability to provide end-to-end supply chain solutions. Quantifiable results that succeeded in developing mutually beneficial partnerships to strengthen the client’s commercial objectives were also taken into consideration.

 

"We are very proud to receive this award. We are working to put the customer at the centre of all our activities, and this shows we are on the right track. The key is to constantly improve services. Another good indicator is that our 2011 customer satisfaction survey shows increased customer satisfaction for the 4th consecutive year," said Mr Martin Thaysen, Global Chief Commercial Officer, Damco.

The SCM Logistics World Conference, held at the Marina Bay Sands, brought together more than 500 executives from the supply chain and logistics industry.

 

Source : Exim News Service - COPENHAGEN, Nov. 27

Shipbuilders facing slowdown, urged to look at offshore energy

THE global shipbuilding industry is being urged to seek growth opportunities in the offshore energy sector.

 

Speaking at the recent fourth Seoul International Shipbuilding and Maritime Conference (SIMS), Mr Oh Kong-Gyun, CEO of Korean Register of Shipping, pointed out that while the world fleet was continuing to grow, the number of new orders decreased during the 2006-2009 period.

"It can be assumed," he said "that over the coming 10 years, the yearly average newbuilding order book will be less than that of the past decade. The demand for containers, tankers and LNG carriers will decrease, while the construction of offshore platforms will show strength in the marketplace owing to a high demand for energy, increased investment in the exploitation of oil and gas, and the higher oil prices."

 

However, according to Mr Oh-Yoon Kwon, General Manager of Korean Shipbuilders’ Association, shipbuilders in Korea experienced a recovery in new orders in the first half of 2011. Yards were concentrating on innovation and maintained a top quality management to assist in securing new business, he added.

 

The future prospects for the international shipping and shipbuilding markets were discussed in detail at the SIMS conference.

 

Source : Exim News Service - SEOUL, Nov. 27

 

 

Detained containers to be transshipped

Detained containers to be transshipped. In the latest development in connection with the detention of 60 transshipment containers at the Vallarpadam International Container Transshipment Terminal (ICTT), a specially chartered vessel is arriving in Kochi on Saturday

New safety protocol keeps refrigerated goods moving through Port of Oakland

New safety protocol keeps refrigerated goods moving through Port of Oakland - Oakland Tribune

http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHY7NPMeeJusBlm_Cyd5FWOI30trA&url=http://www.insidebayarea.com/oaklandtribune/localnews/ci_19418832

Government urged to give industry status to freight forwarding in India

Government urged to give industry status to freight forwarding

http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEFZgPeTQ75TGXBtB87-PL4HbQsFQ&url=http://www.brecorder.com/business-a-economy/single/672/189/1254196/

Freight Vessel With Cargo of Stone Sunk Off Welsh Coast

Freight Vessel With Cargo of Stone Sunk Off Welsh Coast

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Shipping firms foresee demand slump

Shipping firms foresee demand slump
http://www.businessworld.ie/livenews.htm?a=2841360;s=rollingnews.htm

Tiny device from IIT-Kanpur can prevent derailment

Tiny device from IIT-Kanpur can prevent derailment
http://in.news.yahoo.com/tiny-device-iit-kanpur-prevent-derailment-093544508.html

Indian cotton seen sliding on lower China demand, supply

Indian cotton seen sliding on lower China demand, supply

http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF5P8LaFMEiwa2KD2DYhysiZj_7Qg&url=http://www.brecorder.com/cotton-a-textiles/single/625/185/1255678/

Pakistan business hits at barriers to India trade

Pakistan business hits at barriers to India trade -
DAWN.com
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNE7-VVXoHEQdQWn0_bVqMwfzEtaMQ&url=http://www.dawn.com/2011/11/27/pakistan-business-hits-at-barriers-to-india-trade.html

India's Rice Export Demand Picks Up

India's Rice Export Demand Picks Up On Weakening Rupee, Bumper Crop - Wall Street Journal

http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH5RxHMbFdsFVPgAQWgSl-AAgcn9g&url=http://online.wsj.com/article/BT-CO-20111125-704108.html

New service tax circular would expedite refund claims: Fieo

COMMENTING on the recent service tax circular for claiming refunds through ICES with regard to specified services availed of for export of goods, Mr Ramu S. Deora, President of Federation of Indian Export Organisations (Fieo), said that it would make refunds quicker, considering that the exporter will have to declare his intent on the shipping bill, which would be processed just like the drawback shipping bill.

Expressing confidence that the new dispensation under ICES would create an enabling environment for service tax refunds, the Fieo chief pointed out that getting refunds had become difficult following the tax offset facility under Rule 2 of the Cenvat Credit Rules, due to the merger of service tax credit with Cenvat credit.

As regards the non-drawback shipping bills, Mr Deora made it clear that once the Export General Manifest (EGM) is filed, the bills would move separately, get processed and sanctioned on the ICES. "In either case, shipping bill itself will be the basis for claiming refund".

Mr Deora said the draft circular also spoke of plans for creating a separate service tax directory in the ICES for the specified services, along with the specified rate for each of these services. "These rates would be similar to an AIR (all-industry rate), which is being proposed for these services. If an exporter wants a refund on the basis of actual input taxes paid, the ICES route cannot be used and filing through field formations would be required", Mr Deora explained.

The Fieo chief also mentioned that scrolling for both drawback and service tax would take place together in the case of drawback claims. "For non-drawback claims, the service tax refund is scrolled once the EGM is filed", he said.

Source : Exim News Service - MUMBAI, Sept. 12

 

Growth spectacular but challenges ahead will hit exports: Fieo

COMMENTING on the July 2011 trade data, Mr Ramu S. Deora, President of Federation of Indian Export Organisations (Fieo), said that the growth in exports, considering the numerous challenges, is indeed spectacular and is a measure of the entrepreneurial skills of Indian exporters, coupled with their aggressive intent of diversification both at the product and country level.

Acknowledging that the government too had played a part in the feat through its market-linked incentives, the Fieo chief said that the growth of 81 per cent in exports, on a not-so-low base of July 2010, was unheard of in the recent history of Indian exports. He complimented the exporters of engineering goods, gems and jewellery, readymade garments, manmade yarn, cotton yarn fabrics, chemicals, electronics and others for chipping in to bolster the growth.

According to the Fieo chief, a comparison of the export figures of the last four months of 2011 with the same period of 2010 showed that the country was adding around $10 billion, resulting in $26-27 billion in exports every month.

Mr Deora added that imports too were increasing, with a trade deficit of $42.7 billion in the first four months, thus projecting a fiscal deficit of $125 billion in 2011. Therefore, "the government must give a boost to exports to bridge the deficit", he stressed.

Drawing attention to the challenges facing Indian exports in view of the recent global developments, the Fieo President said these could not be ignored as they would have serious bearings on the country's exports in the coming two quarters.

With regard to the problems on the domestic front, i.e. the hike in interest rates for exports and uncertainty over continuance of the DEPB scheme, the Fieo chief, while admitting that it had further accentuated the problem, apprised that both issues had been brought to the notice of the Finance and Commerce Ministries, who need to quickly act on them to lessen the discomfiture of exporters.

He felt that exports would see a dip in Q3 and Q4.

Source : Exim News Service - MUMBAI, Sept. 11

 

Three-month extension for duty-free sugar imports

The Union government has decided to extend the duty-free imports of raw and white sugar by three months till November 30.

According to a notification, the extension given to the tax-free imports will be effective from September 1. It may be recalled that the country had earlier permitted tax-free sugar imports until August 31, following the cancellation of a 60 per cent tax reinstated on April 1.

Expectations are rife that India, which is the world’s second largest producer after Brazil, is likely to produce 26 million tonnes (mt) of sugar in 2011-12 (October-September) against a government estimate of 24.2 mt for the year.

Source : Exim News Service - NEW DELHI, Sept. 11

 

Ennore Port stake sale plan deferred due to unviable outlook

WITH the Shipping Ministry considering the government's plan for a stake sale in Ennore Port as 'unviable' at present, the proposal has been put on hold.

An official apprised that the Ministry had requested the Department of Disinvestment to wait for two years as it reckoned that disinvestment would be a viable option only after the projects take off at the Port.

The official pointed out that work on the rail connectivity and container terminal projects, being implemented on PPP basis, were in progress and expected to be concluded in two years. It may be recalled that Ennore Port was originally conceived to handle thermal coal to meet the needs of the Tamil Nadu Electricity Board, but the scope had to be expanded subsequently in view of Tamil Nadu’s plan to set up a power project.

Source : Exim News Service - NEW DELHI, Sept. 11

 

Port workers oppose judicial panel revising wages

MAJOR port and dock workers federations have taken exception to the Shipping Ministry’s decision to appoint a Judicial Commission (JC), with effect from January 1, 2012, for revising wages and other related service conditions for workers.

Following a meeting in New Delhi recently, the federations have resolved to brace themselves to fight the development.

The government’s decision to form the commission, instead of settling the issue of wage revision through the Bipartite Wage Negotiating Committee (BWNC), went against normal practice, said Mr T. Narendra Rao, General Secretary of one of the federations. He pointed out that the Indian Ports’ Association had officially communicated to the federations on the issue only on September 5.

Apprising that the federations were opposing the government’s move as the decision was against the principle of collective bargaining, which has been in play in the port sector for several decades, Mr Rao contended that "this is nothing but an ill-motivated attempt to distract the trade union movement in the port and dock industry."

He disclosed that the port and dock workers have unanimously resolved to organise massive demonstrations at the Major Ports on September 29. "The federations have also made a plea to the Shipping Minister, Mr G. K. Vasan, to intervene in the matter by taking cognisance of the situation in the port industry and again constituting the BWNC," he said.

Source : Exim News Service - KOCHI, Sept. 11

 

Oilmeal exports rise 14.5 pc in Aug.

A leading trade body has apprised that oilmeal exports climbed 14.5 per cent to 279,469 tonnes in August from 244,075 tonnes a year earlier, owing to more oilseeds being available coupled with good demand from South-East Asia.

According to a statement issued by the Solvent Extractors’ Association of India (SEAI), oilmeal exports in the first five months of the current fiscal shot up over 60 per cent to 1,639 million tonnes compared with 1,021 million tonnes a year ago.

However, soyameal exports declined six per cent last month to 165,610 tonnes due to less availability of soyabean for crushing, following the export of the bulk of the crop in the first half of this year.

Source : Exim News Service - Mumbai, Sept. 11

 

MoS not keen to disinvest DCI due to 'low valuation'

Given the Dredging Corporation of India’s (DCI) current low valuation, the Ministry of Shipping (MoS) has dropped enough hints to the effect that it is not in favour of the proposal, by the Disinvestment Department, to sell part of the government’s stake in the PSU as of now.

Maintaining that disinvestment in DCI was not feasible at current valuations of the company, a MoS official said that it had reported a profit of only Rs 39 crore in the last fiscal. While the government has already divested 22.5 per cent of its stake in DCI, the official pointed out that it could now only disinvest up to 25 per cent. Hence, the official, while maintaining that there is not much scope left, emphasises that the time too is not ripe.

It may be recalled that the Department of Disinvestment had suggested to the government to go ahead with divestment in DCI, as part of achieving the target of Rs 40,000 crore in this fiscal by selling stakes and raising fresh equity in PSUs.

Source : Exim News Service - NEW DELHI, Sept. 11

 

Cargo modularisation in India-a key challenge in project cargo movement

In today’s scenario, one of the key success areas for any EPC (Engineering, Procurement & Construction) contractor is compacting the lead time in Erection and Commissioning (E&C) activity and bringing down the construction cost, while at the same time maintaining high quality standards of the job being performed at the project site.

All this can be made possible only when the components/packages to be installed at the site are received in modular form rather than in a considerable dismantled form. Considering the fact that most of the project sites in India are at remote locations and there is dearth of skilled labour at these sites, it is highly imperative that the fabrication and assembly work at the project site is minimised. Therefore, cargo modularisation plays a vital role for any EPC contractor for seamless execution of a project.

However, the factors responsible for limiting cargo modularisation in India are:

a) Insufficient road widths at several locations en route, for haulage of the ODC packages to the project sites.

b) Non-availability of bypasses at several locations and the routing of packages therefore through congested areas.

c) Restricted vertical clearances of RuBs (Rail under Bridges) at several places.

d) Multiple RTO norms applicable during inter-state movement of such ODC packages.

e) Heavy traffic density on National Highways due to their limited network, thereby limiting the movement of such packages.

f) Cost of extensive civil works in hauling such packages, in addition to the considerable delays.

It has, therefore, become necessary that for all mega projects in the core sectors of the economy, which are projects of national importance, the roads to the sites should be given National Highway status to be able to cater to larger ODC modular size packages. Also, the RTO norms should be unified for fast-track clearance of these packages, under single window.

—Tapan Sahu, Logistics Professional

 

EXIM News

The curious case of CHA not being a forwarder

Has this question ever occurred to you as to why are shop ping malls today more popular than the traditional markets, or as to why do consumers prefer to do their shopping in the malls rather than going to street-side shops which they have been doing for years?

The answer is very simple. You get all your shopping needs fulfilled at a single location. Then come the reasons of ambiance and quality.

Now imagine that this consumer is an exporter or an importer (let's collectively call them shippers). A typical shipper has various logistics requirements and imagines that his current service provider does only CHA work. In that case, what will the shipper do? Of course, he will be forced to go to a minimum of 5 different agencies, i.e. a transporter, freight broker, warehousing company, Octroi agent and DGFT consultant, and possibly more agencies depending on the type of shipment.

Today, these are the basic service requirements that any shipper (consumer) is looking for from his clearing agent. Now let's take this situation to the next level. This shipper has an import shipment and his supplier is willing to supply the goods only on Ex Works basis. Where does the shipper go now? He will obviously look towards his CHA for a solution, and if the CHA is not able to provide one, the shipper will be forced to go to a forwarder.

Now we have clarity as to why it is so important to offer one-stop forwarding solutions to the shippers at large. In India we have a great tradition of Customs clearing agencies. Some of them have been in existence for 100+ years and have such excellent domain knowledge of the Customs clearing process that their expertise is sought by the Customs Department on many occasions. This means that obviously they are doing something right which has ensured their existence for so many years. Is that good enough in today's context?

The answer is a clear NO. If the clearing agents do not offer all services to the shippers, then the shippers will look for alternative solutions. They will continue to get the clearing activities done from the existing clearing agents and move the forwarding business to some other competent service provider. Here's a case of lost opportunity, and gives strong reasons for today's clearing agents to shift their business models from just being a clearing agent to being international forwarding agents.

Now how does one do that? The answer is fairly simple:

1. Train yourself, your staff and your successors (children) on forwarding. The easiest solution is to send them for two years training with a large international forwarder or a shipping line.

2. Become a FIATA member or become part of a global forwarding network which will give you instant access to a worldwide network.

3. Equip yourself with technology; use the best software available in the market.

4. Do your business with quality—get an ISO certification, get a quality expert to assist you with the process.

The last two points are those of ambience and quality which I referred earlier in the context of the shopping mall. The software gives you the ability to reduce service deliverable time and the quality initiative gives consistency.

The Association of Multimodal Transport Operators of India (AMTOI) is available to assist the Indian transport industry to upgrade and change in order to face the challenges of the new business environment. AMTOI can be reached on info@amtoi.org.

—Vivek Kele, Invitee Member, AMTOI

 

Exim News

Rickmers-Linie upgrades Indian service with addition of new vessels

Rickmers Yokohama makes maiden voyage to Mumbai

Rickmers-Linie, the German liner specialist for project cargoes and heavy lifts in existence for over 175 years, is upgrading its Indian service with the addition of new vessels.

It provides a direct liner service both eastbound and westbound between Europe and India, although calls in Pakistan and the Middle East will be possible on an inducement basis. The base ports served are Hamburg, Antwerp, Genoa, Mumbai, Vizag and Chennai.

Four new vessels were in service. m. v. Linde, Martin, Formation and Fanfare, long-term chartered by the line, while Rickmers Yokohama has just been introduced and called Mumbai on her maiden call last week.

A function was held on board the vessel to mark the occasion, which saw mementoes being presented to Capt. V. Korolkevich, the Master of the vessel. The event was graced by, among others, Mr Shree Kant Singh, Chairman of Mumbai Port Trust (MbPT), Mr Dhruv Kotak, Director of United Liner Agencies (ULA), Rickmers-Linie's general agent in India, Capt. K. D. Giese, Senior Rickmers-Linie representative in India, Capt. V. Dadachanji, Rickmers-Line India Representative, Mr Percy Bilimoria, COO, ULA, Capt. O. P. Dhondiyal, Vice-President (Operations), ULA, Capt. Karkare, Senior Docks Master, MbPT, Capt. S. Kohli, Deputy Conservator, MbPT, and Mr V. S. Kulkarni, Deputy Docks Manager, MbPT.

Rickmers Tianjin is due to be delivered shortly ex China and will also enter the Europe/India service. Both vessels are constructed keeping in mind the restrictions for length and beam at Indian ports.

Built in 2005 and later, the ships Linde, Martin, Formation and Fanfare are 12,800 DWT vessels equipped with twin 120-tonne capacity cranes that can be twinned to lift 240 tonnes. Rickmers Yokohama and Rickmers Tianjin are 17,000 DWT vessels each equipped with two 150-tonne cranes and an 80-tonne crane. This enables them to lift up to 300 tonnes by twinning the two larger cranes. Rickmers-Linie is exploring engaging two more vessels with lifting capacity of 2 x 400T (combined 800T) to introduce in this sector.

All the ships employed on the revamped Indian service offer greater flexibility to serve ports such as Mumbai and Kolkata—where lock-gates restrict the size of vessels—as well as various other ports on both the West and East Coast, on inducement basis.

Mr Gerhard Janssen, Director, Marketing and Sales, Rickmers-Linie, believes that the timing of this upgrade of the service is ideal. "We are seeing increasing demand for break-bulk space on this route. Eastbound, we expect to be loading steel products as a base load, topping off with manufactured goods ranging from mobile cranes and mining products through to specialist railway and power generation equipment. Westbound, there are more and more non-containerisable shipments as India's engineering and manufacturing capabilities develop."

Rickmers-Linie is represented by United Liner Agencies of India (Pvt.) Ltd as its general agents in India since inception in 1994. Rickmers-Linie has a long-standing and very experienced Senior Representative in India in the form of Captain K. D. Giese, and Indian Representative as Capt. V. Dadachanji.

Rickmers-Linie shall be employing six vessels on the Europe India Sector in order to maintain the liner schedule as required by the trade. This will result in a sailing every 7-10 days for the Europe India trade, with newer ships, thus making them competitive in foreign markets. Rickmers-Linie also has an agreement with Shipping Corporation of India (SCI) to carry projects on its behalf on these vessels. A further advantage to Indian business in using newer Rickmers ships will be cost benefits in savings for marine insurance, timely schedules, etc.

Source : Exim News Service - MUMBAI, Sept. 11

 

India container volume rises 4%

Throughput in April-August period increased by 3.1 million TEUs year-over-year

Container throughput at major ports in India increased 4.4 percent year-over-year in the April-August period, the Indian Ports Association said Friday.

Total volume for the first five months of fiscal 2011-12 was estimated at 3.22 million 20-foot equivalent units, up from 3.1 million TEUs a year earlier.
The tonnage of container traffic surged almost 10 percent to 49.4 million tons from 45.3 million tons.

The volume of containers handled by Jawaharlal Nehru (Nhava Sheva), the country’s largest container port, grew 2 percent to 1.78 million TEUs from 1.75 million TEUs.

Traffic at Chennai rose 6.5 percent to 672,000 TEUs from 631,000 TEUs a year earlier.

The latest IPA figures indicate recent congestion problems, following crane replacement at Nehru and truckers’ strike at Chennai, adversely impacted traffic growth at the two busiest container hubs, which cumulatively account for almost 75 percent of India’s total containerized cargo movements.

Kolkata handled 226,000 TEUs, up from 216,000 TEUs. Tuticorin moved 196,000 TEUs compared with 189,000 TEUs.

Major ports suffering marginal declines in container volume included Mumbai and Cochin.
According to the IPA, total tonnage at the 13 publicly-owned ports from April through August was up 4.6 percent to 237 million tons.

Kandla emerged as the top cargo handler with throughput of 35.9 million tons, followed by Visakhatpatnam, at 30.5 million tons; Nehru, at 26.7 million tons; and Chennai, at 24.7 million tons.

April-July iron ore exports down 21.86% to 25.29 mn tonnes: Trade body

MUMBAI: Iron ore exports from India, the world's third biggest exporter, fell 21.86 percent to 25.29 million tonnes during April-July weighed by higher costs and slow efforts to resume shipments in a key state, data from the trade body showed.

Exports of the steel-making ingredient fell 29.01 percent to 8.142 million tonnes in April, and fell 16.89 percent in May to 9.338 million tonnes, the Federation of Indian Mineral Industries ( FIMI) said in a statement late on Thursday.

Exports in June fell 15.98 percent to 4.186 million tonnes, while shipments in July fell 22.56 percent to 3.624 million tonnes.

Southern Karnataka state, which accounts for about a quarter of the country's iron ore exports, banned shipments in July last year to curb illegal mining.

In April, the Supreme Court ordered the state to resume shipments but, to date, exports have yet to resume.
High export tax and rising freight rates also weighed on shipments. India, in February, had raised the export tax on iron ore fines to 20 percent from 5 percent to conserve the natural resource for local consumption.

The Supreme Court has banned mining activities in Tumkur, Bellary and Chitradurga districts of Karnataka. The top court has allowed state-run NMDC to mine upto 1 million tonne per month from its mines in Bellary district.

Iron ore exports from India are likely to fall by more than a quarter to their lowest level in eight years in the fiscal 2012, a Reuters poll showed.
Iron ore sales are forecast to fall to 71.25 million tonnes in the current year to next March, from 95 million tonnes in the previous year, according to the median estimate in a Reuters poll of 10 iron ore miners, exporters and analysts.
Source : economictimes.indiatimes.com

Arshiya plans for capacity hike

Arshiya is all set to adopt and incorporate plans in order to increase capacity by investing Rs 150 crore

Capacity increase seems to be on the mind of the Indian shipping sector. Logistics giant Arshiya International is one such name which plans to invest Rs 150 crore to double its rail capacity to 30 rakes in the present fiscal, a senior executive of the logistics firm shared with the media on the sidelines of a recent conference.

Sajal Mittra, CEO of its subsidiary Arshiya Rail Infrastructure, said that the company will get 15 additional rakes before March, which will be dedicated to serve the EXIM (export-import) sector. Currently, the company is operating 15 such rakes, each consisting of 45 wagons, 14 of which are used for domestic purposes like transporting goods produced at one place to the other, said Mr Mittra. He added that the new ones will be put to use for ferrying goods for exports or getting imported goods inland. Each of the rakes costs around Rs 12.5 crore.

According to Ramesh Dewidi, proprietor of VR Logistics Pvt Ltd, a small-sized logistics service provider based in Ludhiana, “India's logistics services providers are steadily expanding their limited supply chain network countrywide to cater to a growing clientele, but limited capabilities and poor infrastructure are slowing them down.”  

More plans in pipeline

Besides the rakes, the company is also quite keen on investing in the free trade warehousing zones (FTWZs). Mr Mittra said the second FTWZ at Khurja near Delhi will become operational by October. Almost all the FTWZs are typically spread over 200 acres, designed to store multiple lines of products and demands an investment of up to Rs 700 crore. Arshiya’s first FTWZ at Panvel near Mumbai is also the country's first and two other FTWZs are coming up in Chennai and Nagpur - both of which are expected to be operational by mid-2013. Arshiya is identifying possible land in the eastern zone for the last of its five FTWZs.

Govt. Plan to Raise Export Price of Onion to USD 475/Tonne

NEW DELHI SEPT 8:To curb exports of onion and improve its supplies in the domestic markets the government is contemplating increasing the minimum exports price (MEP) of onion bu almost $175 per tonne to $475 per tonne but it may not immediately ban onion exports.
At present the MEP is pegged at $300 per tonne after it was raised by $25 per tonne on August 24.The hike the fourth since June 18 was done is the retail price of onion started rising because of delay in sowing of kharif crop in Maharashtra and also hoarding by farmers ,analysts said.
Officials said the government is now mulling the option of further raising thte MEP as retail price are still high but could stop short of banning exports as it could hirt the interest of growers.
If the MEP is hiked is $175 per tonnes it should go a long way in curbing exports as effectively it would mean that any onion priced below Rs 22 and RS 23 per kilogram(assuming dollar rate is Rs 46)will not be allowed to be exported.At current rate the MEP of onion is Rs 13-14 per kilogram.
Consumer affairs minister K V Thomas chaired a meeting with senior official attached with his ministry and also others to review the onion price situation across the country.Following the National Cooperative Consumer Federation of India (NCCF)will sell onion at RS 20 per kilogram through
their retail outlets in Delhi.,
Thomas has also directed all officials to keep a close watch on the price situation and take other appropriate measure like discouraging export if requried.The meeting was attended by secretary,consumer affairs

Alternative to DEPB

NEW DELHI SEPT 8:In the backdrop pf strong demands from exporters for retaining DEPB Commerce and Industry Minister Anand Sharma met Finance Minister Pranab Mukherjee.The exporters have been demanding that the tax-refund DEPB Scheme,which is set to expire by the end of this month should be extended.”While the DEPB will end on September 30 the commerce and finance ministries are jointly tember 30 the commerce for export incentive ,”source said.The main beneficiaries of the DEPB scheme are engineering automobile and chemicals sectors.Though Indi’s exports have shown a remarkable performance ,growing by 54oc between April-July 2011 to $108.3 billion there are concerns that the momentum may not be sustained in the wake of increasing economic problem in the US and Europe

Stake sale in Ennore Port put on hold

New Delhi, Sept 9: 

The Government’s plans for a stake sale in Ennore Port Ltd has been put on the backburner as the Ministry of Shipping is of the view that the proposal is “unviable” at the moment.

“We have asked the Department of Disinvestment to wait for two years, let the projects at the port take off, then it (disinvestment) would be a viable option,” a Shipping Ministry official told PTI.

Rail connectivity and container terminal projects at the Ennore Port are underway and are likely to be completed in about two years. These projects have been taken up on a public-private partnership (PPP) basis.

The Ennore Port was originally conceived to handle thermal coal to meet the requirement of the Tamil Nadu Electricity Board (TNEB). The scope was expanded later, taking into account subsequent developments such as the Tamil Nadu Government plans to set up a power project.

Earlier this year, the Minister of Shipping, Mr G.K. Vasan, had said the Government was looking at divesting a part of its stake in Ennore Port Ltd.

Currently, there are 12 major and 176 minor ports in the country. The 12 existing major ports are Mumbai, the Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatnam, Kochi, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.

Meanwhile, the Ministry plans to award 24 port expansion and capacity creation projects in the current financial year (2011-12) at an estimated investment of over Rs 16,900 crore, leading to additional capacity creation of 232.43 million tonnes.

Out of the 24 projects, 12 are new projects, while the rest are carry-forward projects from the last two years.

‘Vallarpadam [ICTT] must match Colombo rates to attract cargo

Vallarpadam International Container Transhipment Terminal (ICTT) at Kochi port will struggle to attract cargo unless it becomes cost-competitive vis-à-vis Colombo port, Indian shipping industry sources say.

A comparison shows that a container vessel of GRT 11,998 capacity will attract port charge of $16,936.63 at Vallarpadam, against $3,517.20 at Colombo.

Breakups show port dues and pilotage at Vallarpadam at $4,295.30 and $9,346.44 respectively, as compared to $546 each at Colombo.

Several other cost components too place the ICTT at a disadvantageous position.

Dismissing suggestions that there was dearth of coastal shipping tonnage for feedering transhipped cargo between Vallarpadam ICTT and other Indian ports, the industry sources contend that “Ships will always rush to a port where there is cargo”.

There is no pendency at Vallarpadam, they point out.

throughfare

While there is no dearth of coastal cargo from ports such as Kandla, Mundra, Pipavav, JNPT, Mormugao and New Mangalore to Vallarpadam, cargo inducement in the opposite direction is virtually non-existent.

The sources say that the problems facing Vallarpadam ICTT are far more complex than they appear to be, and mere relaxation of Cabotage restriction will not help attract traffic.

Stevedores at New Mangalore port seek Ministry intervention on port rentals

Mangalore, Aug. 30: 

Stevedores at the New Mangalore Port have sought the Shipping Ministry intervention to withdraw the TAMP order increasing the port rentals with retrospective effect from 2007.

In a memorandum sent to the Shipping Ministry, Mr S. Shekhar Pujari, President of New Mangalore Port Stevedores, said that the association is surprised and hurt by the order which increased rentals from 50 per cent to 84 per cent on paved, unpaved and covered areas on long-term and short-term basis.

Timebound contracts

It said that the order of TAMP (Tariff Authority for Major Ports) has been effective from February 20, 2007. It will not be possible for the port users to recover increased rentals from importer/exporter since many of the work orders and contracts are time-bound.

While some of them closed their businesses, some other users are not using the NMPT. “This would only be a heavy burden on handling agent/ stevedores,” the memorandum said.

It said that the port submitted its request for increase in rates with TAMP in March 2007 and the port submitted its valuation report on July 17, 2009. The TAMP order, which expired on February 20, 2007, has been continuously extended till September 30, 2010.

The memorandum said that the TAMP issued the new order no. G-184 dated July 23, 2010 giving the highest ceiling rates.

“When we approached TAMP, we were informed that it is the port which has the full power to reduce the exorbitant rentals/suitable charges to make it prospective. Till date the port has not taken any decision on this issue. But have insisted us to pay the rentals retrospectively w.e.f February 20, 2007,” it said.

The memorandum said that the delay in fixation of port rental was mainly due to the delay on the part of the port and TAMP.

Since no decision was taken by the port authorities, one of the members of the association filed a plea in the Karnataka High Court.

The memorandum said: “The honourable High Court has stayed the demand for payment of rentals retrospectively and ordered to pay it on prospective basis and port users have complied with the same.”

It requested the Shipping Ministry to instruct the NMPT to withdraw the retrospective demand, and collect it prospectively.

Port sources told Business Line that because it is in the Court, the matter is sub-judice, and did not comment on it.

Business Linie

Performance Analysis of EPC SRTEPC holds 57th Annual General Meeting in Mumbai

Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) is one of the 35 Export Promotion Councils & Commodity Boards established by the Govt. of India with a specific objective of promoting the export growth of specific products. SRTEPC held its 57th Annual General Meeting on Sept. 2, 2011 in Mumbai, with Mr A.B. Joshi, Textile Commissioner, as the chief guest. During the meeting, SRTEPC released its Annual Report for the year 2010-11 along with Audited Balance Sheet & Income & Expenditure Account. Mr Vinod Ladia, Chairman of SRTEPC, in his speech furnished the following data on the export performance of the Council during the period 2010-11.

(1) Exports of Indian synthetics and rayon textiles during the period 2010-11 are estimated to be USD 4.645 billion equivalent to INR 21,571 crore, registering 9% export growth as compared to 2009-10 at USD4.160 billion equivalent to INR 19,775 crore only. In dollar terms, it is 12 per cent growth. This export was directed to over 140 countries. Director-General of Commercial Intelligence & Statistics (DGCI&S), Kolkata has furnished comparative data as given hereunder:-

Products	2010-11	2009-10	% Change	Product Share
1) Fabrics	10839.95	10130.79	07	50%
2) Yarn	5485.61	4648.82	18	26%
3) Made-Ups	3431.60	3361.65	03	16%
4) Fabrics	1813.64	1663.89	09	08%
Total	21,570.80	19,775.15	9.08

(Figures in INR crore)

(2) During the first two months of April-May 2011, the exports of Indian synthetic and rayon textiles were to the tune of INR 4135 crore as compared to INR 3181 crore in the corresponding two months in the year 2010, registering 29.98% export growth. This is quite in line with the CAGR of 26.7% set by MOCI for exports in general. The target set for the whole year 2011-12 is USD 5.500 billion. Mr Ladia on behalf of the Council has accepted this target.

Subject to following two riders:-

(a) Continuation of DEPB scheme or an alternative scheme in replacement of DEPB

(b) Making available of raw material at international prices for export production

A ray of optimism on point (a) above is given by Mr Ladia that MOCI may manage to get extension of DEPB scheme until the alternate scheme is put in place. However, Mr Joshi preferred to evade this issue completely in his speech.

(3) The share of SRTEPC in the export kit of India’s total export of USD 246 billion is quite insignificant at USD 4.465 billion. It works to out to only 1.89%. This figure of USD 4.465 billion accounts for shipments made to 140 countries (average USD 0.032 billion). Remember that SRTEPC had 3865 members as on March 31, 2011 as compared to 3682 members in the previous year. Average export transaction made by a member is USD 0.0912 billion only. Does such performance justify the existence of a separate Export Promotion Council for this product? Few status-holders like Reliance, Grasim, Indo-Rama etc. hold major share in the kitty, leaving some scrubs to others for names sake! The Annual General Body has approved the resolution to increase the number of members to 6000 and to include "Technical Textiles" under its exclusive purview. The "Technical Textiles" is reported to be one of the most promising and fastest growing sectors and no Council is dealing exclusively with this product. Mr Ladia expressed his optimism that by bringing TT under the wings of SRTEPC would expand the product profile and the exports of the Council and bring new members to its fold.

SRTEPC had only INR 5730 crore worth of exports during the year 2001-02. Registering 4 times growth by the year 2010-11, it is worth INR 21,571 crore. At present, India’s share of global trade in synthetic and rayon textiles is said to be 3.5%.

4) Export Destination

As already stated above, 140 countries buy Indian synthetic & rayon textile products from India. Following are the main export destinations:-

Country	INR (Crore)
1) United Arab Emirates	2730
2) Pakistan	2146
3) Turkey	1291
4) Brazil	1215
5) USA	1210
6) Bangladesh	759
7) United Kingdom	716
8) Germany	620
9) Egypt	573
10) Saudi Arabia	561
11) Others	9750
Total	21,571

Region-wise data:-
1) Middle East/Gulf	25%
2) Asia	23%
3) EU	22%
4) North & South America	19%
5) Africa	10%
	100%

It needs to be highlighted that Pakistan is the second largest trade partner in this product next only to the UAE. Mr Ladia pointed out that Customs has declared one more land Customs station at the Indo-Pakistan border to facilitate shipment of cargo by land route.

Exporters of synthetic & rayon textile products may be taking advantage of Focus Market Scheme for the shipment made to Brazil, Egypt etc.

5) SRTEPC is active in undertaking trade promotional measures. During the current year (2011-12), the Council has already participated in the 5th Dhaka International Yarn and Fabrics show and Tex World Fair, USA.

The Council has plans to hold exclusive exhibitions in Saudi Arabia, Kuwait, Colombia, Equador and Spain.

Preparations are in progress to hold the combined Indian Textile & Clothing Exhibition in Egypt during January 2012.

SRTEPC has been designated by the MOT as the lead organiser of the combined Indian Textile & Clothing Exhibition titled. INTEXPO being held in Malaysia. Intexpo is meant to showcase the entire range of textiles and garments on a common platform in the Asian region. This exhibition is being held in the context of the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) which has come into effect from July 1, 2011. On the occasion of INTEXpo, other programmes such as Networking Seminars/Buyers Programmes for the Asian Region are also being planned. INTEXPO is scheduled to be held in the third week of Nov. 2011. Reservation of stalls has already started and for details, the exporters should surf website of SRTEPC (www.srtepc.org).

In the last year (2010-11), SRTEPC participated in the TEX TRENDS INDIA 2011, which was organised by the MOT with the support of MOCI and participation of all textile & allied EPCs. 50 members of the SRTEPC put up impressive display of their products in an area of 800 sq.mtrs. Next edition of this exhibition is scheduled to be held in Feb. 2012.

It needs to be highlighted that Pakistan is the second largest trade partner in this product next only to the UAE. Mr Ladia pointed out that Customs has declared one more land Customs station at the Indo-Pakistan border to facilitate shipment of cargo by land route.

Exporters of synthetic & rayon textile products may be taking advantage of Focus Market Scheme for the shipment made to Brazil, Egypt etc.

5) SRTEPC is active in undertaking trade promotional measures. During the current year (2011-12), the Council has already participated in the 5th Dhaka International Yarn and Fabrics show and Tex World Fair, USA.

The Council has plans to hold exclusive exhibitions in Saudi Arabia, Kuwait, Colombia, Equador and Spain.

Preparations are in progress to hold the combined Indian Textile & Clothing Exhibition in Egypt during January 2012.

SRTEPC has been designated by the MOT as the lead organiser of the combined Indian Textile & Clothing Exhibition titled. INTEXPO being held in Malaysia. Intexpo is meant to showcase the entire range of textiles and garments on a common platform in the Asian region. This exhibition is being held in the context of the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) which has come into effect from July 1, 2011. On the occasion of INTEXpo, other programmes such as Networking Seminars/Buyers Programmes for the Asian Region are also being planned. INTEXPO is scheduled to be held in the third week of Nov. 2011. Reservation of stalls has already started and for details, the exporters should surf website of SRTEPC (www.srtepc.org).

In the last year (2010-11), SRTEPC participated in the TEX TRENDS INDIA 2011, which was organised by the MOT with the support of MOCI and participation of all textile & allied EPCs. 50 members of the SRTEPC put up impressive display of their products in an area of 800 sq.mtrs. Next edition of this exhibition is scheduled to be held in Feb. 2012.

SRTEPC’s views on continuation of DEPB scheme

Mr Ladia has put up following arguments for the extension of DEPB scheme till an alternate scheme in put in place:-

a) The scheme plays an important role in exports of MMT and is popular among the exporters.

b) Simplicity in the operation of the scheme and its wide coverage.

c) The majority of the members in SRTEPC in merchant exporters & discontinuation of the scheme will have serious impact on exports.

d) The competition from China is increasing where the Govt provides higher export incentives to their exporters.

e) The prevailing adverse global scenario warrants the continuation of the DEPB scheme at least for one year instead of Sept. 31, 2011.

f) He has cautioned the SRTEPC members that they will have to live without DEPB scheme at the nearest future, hence necessary adjustments in the costing must be made while fixing the pricing of the products.

Duty Drawback Scheme—Need for Rate Revision

Mr Ladia had made a presentation on the above matter on May 30, 2010 before the Drawback committee. The Council’s proposals include the following:-

a) All Industry Rate of Duty Drawback as in existence today is not adequate.

b) While fixing the rate, following factors also should be taken into account

i) Cost towards high infrastructure defeciencies in India
ii) High interest rates
iii) Various state-level taxes
iv) High power cost
v) High transportation charges
vi) Bottlenecks at the ports
vii) Delay of getting the refunds claims

c) Detection of value caps put against certain products restricting the amount of Duty Drawback claim. Introduction of a mechanism where values are revised in line with input costs periodically.

Problems in EDI System—changing from 1.0 to 1.5 version

There were transitional problems like delays in the release of EDI Shipping Bills and its transmission from Customs to DGFT website. It caused delay in filing application for DEPB and Duty Drawback claims. SRTEPC held meetings with Chief Commissioner (Customs) Nhava Sheva and Commissioners of Customs, Mumbai & Nhava Sheva and discussed the matter. The issues were brought to the notice of Central Board of Excise & Customs (CBEC) and requested them to put in place a proper mechanism to ensure the smooth transition so that exporters’ problems are minimised. Current report indicate that complaints from the exporters on this issue have come down considerably.

MDA Scheme implementation

The Councils has disbursed Market Development Assistance Scheme benefits to 88 members during 2010-11 to the tune of INR 11918672. The Council, as the designated implementing authority of MDA scheme has done fairly good job on this work.

The MDA scheme at present is applicable to exporters with an annual export turnover of not more than INR 15 crore. The Council has recommended to the MOCI/DGFT to raise this limit of INR 15 crore.

Issue of COO

The Council has collected INR 1,86,895 from the issue of Certificate of Origin and Amendment charges during 2010-11. SRTEPC has issued 2091 COO for non-quota items to member-exporters during the year 2010-11 (Mumbai office 802, Surat office 474, Delhi office 815).

Anti-dumping duty activities

The Council is seized with the problems arising out of the imposition of anti-dumping duty by Turkey on "Spun Yarns made out of man-made fibre" originating from India vide notification dated 11/01/09. USD 0.29 per kg is the anti-dumping duty on this product exported by RSWM Ltd where USD 0.39 per kg for all other exporters.

The Council has received export advice that Turkish authorities did not consider the facility of DEPB, Duty Drawback and Central Excise Rebates as "adjustments" while fixing dumping margins which is incorrect. Moreover, the Turkish authority violated many of the WTO provisions and anti-dumping rules. The Council is of the opinion that the issue may be taken up with the Dispute Settlement Board in WTO. Data have been collected by the Council & submitted to MOT & MOCI.

Meanwhile the Council is also evaluating the possibilities of filing Review petition with the designated authority.

The second Anti-Dumping Duty case is from Brazil which imposed ADD on the import of "Viscose Spun Yarn" originated and exported from India. The Council has collected relevant data from the members exporters for the purpose of filing interim Review. There were irregularities in the investigation which have already been reported to the Govt. of India so that suitable grounds can be prepared to take up this issue with Dispute Settlement Board (DSB) in WTO.

Meanwhile, the Council has evaluated the possibilities of filing a Review petition with the Designated Authority.

The third case pertains to the imposition of ADD by Peru on the import of fabrics made out of polyester staple fibre and Viscose Staple fibre of Indian origin. The ADD range from USD 1.12 to USD 2.76 per kg. The two Indian companies involved were BSL Ltd and Sangam India Ltd. The Indian Embassy officials helped the Indian companies to represent in the personal hearing etc. The duties were effective from June 14, 2010 for a period of 4 months. However, it was reimposed on Oct 12, 2010. During the personal hearing, the Council’s representatives made detailed presentation which dealt with the preliminary findings and argued that many of the adjustments claimed by them for their comparison between "Export Price" and the "Normal Price" had been disallowed.

Second public hearing took place on Feb 14, 2011. It has been noticed that there are many irregularities in the investigation conducted by the Peruvian authorities and suitable actions need be taken by the GOI by taking up the matter to Dispute Settlement Board in WTO.

Overseas Visitors & Foreign Trade Enquiries

The Council office was visited by foreign traders who were given all the correct information about the manufacturers/traders of the synthetic and rayon textile products. The Council organised buyer-seller meets also between the visiting buyers and the concerned Indian exporters so that long term trade contacts could be established.

The overseas buyers are in touch with the Council to identity the appropriate Indian suppliers. 41 importers/agents from 25 countries contacted the Council with specific enquiries during the year 2010-11. It is hoped that few of such enquiries must have materialised into firm orders. The Council provided the prices (domestic, import & export) of different MMF textile items in the market including their supply & the demand. Information about the markets can also be obtained in different varieties & formats.

Conclusion

SRTEPC has performed its duties of promoting the export growth of the products assigned to them. They have got professional personnel capable and committed to render services to the member-exporters. The knowledge-level of the personnel in SRTEPC is high as compared to other Councils. They must be able to achieve export growth to the level of USD 9.445 billion by the year 2013-14 (doubling export turnover of USD4.645 billion which was the export turnover during 2010-11. For this, CAGR for 3 years should be 26.7% as fixed by MOCI for the overall total of export turnover of USD500 billion in the year 2013-14.
- By M. Sreedharan