India's wheat exports may touch record 5 million ton mark

India's wheat exports are pegged to touch a record level of 5 million tons in the 2012-13 marketing season on the back of all time high harvest and large carryover stocks, United Nation's body FAO said.

"In India, given the estimated bumper wheat harvest and larger carryover stocks, exports are anticipated to reach a record level of 5 million tons in 2012-13," Food and Agriculture Organisation (FAO) said in its latest Crop Prospects and Food Situation report.

Wheat marketing year in India commences in April and ends in March.

"Weather conditions at the start of the 2012-13 season have been generally favourable for planting of winter wheat, barley and secondary rice crop. In India, early official forecast for the 2013 wheat crop is set at a near average level of about 86 million tonnes," the report added.

The government has kept a target of 86 million tonnes of wheat in the 2012-13 rabi (winter) season. The country had harvested a record 93.90 million tonnes in 2011-12 crop year (July-June) due to good rains.

That apart, the government has a wheat stock of 37.65 million tons as of Dec 1, 2012, which is above the stipulated buffer and strategic stock requirement of 11.2 million tons as of January 1, 2013.

In July this year, the government had allowed export of 2 million tons of wheat from central pool stocks of Food Corporation of India (FCI) through central public sector undertakings (CPSUs) like STC, MMTCBSE 1.22 % and PEC.

Tenders for export of 1.73 million tons of wheat has been approved, out of which 8.06 lakh tons has been shipped.

Yesterday, Commerce Secretary S R Rao said that the Food Ministry will move a proposal for allowing export of an additional 2.5 million tons of wheat from the central stocks in order to ease the storage crunch being faced by the country due to an all time high production.

Source: Economic Times

Iran's new Currency exchange regulations hits Indian Exporters

Indian exporters are having a tough time exporting to the Islamic republic caused due to the new exchange rate strategy adopted by Iran for importers.

Iran is passing through an acute economic crisis, with its currency plunging to record low levels and prices of food articles escalating. Iran's currency, the rial, has fallen by about 40 per cent against the dollar since August.

As a result, Iranian banks have become extremely reluctant to issue letters of credit (LC) for importers, a crucial link to the newly-established payment mechanism between India and Iran.

According to Indian exporters, Iranian banks have been seeking up to 100 per cent margin money for issuing LCs to their importers, which have shrunk the order book of Indian exporters.

Iranian banks have been especially reluctant to issue LCs for import of non-essential commodities, which have hit exports in sectors such as engineering goods from India.

"Since Iran is going through an exchange crisis, importers of priority sector goods like medicine and pharmaceutical products are getting LCs. However, for other sectors, it is difficult to get LCs," said Suranjan Gupta, director, EEPC India.

  

"We are not getting sufficient buyers in Iran for exports, as due to the currency crisis, banks in Iran are very reluctant to issue LCs," said P K Shah, former president, Federation of Indian Export Organisation.

Source: Business Standard 

INDIA RICE PROCUREMENT SOARS, MANY REGIONS UNTOUCHED

India’s state agencies and Food Corporation of India (FCI) have together procured around 12.52 million ton of rice in the 2012-13 procurement season that started from October till Dec 05, almost 5.9% more than the same period last year.

However, the data showed that procurement has not started in Bihar, Jharkhand, Orissa and West Bengal, all big rice producing states.

Leaders of major political parties raised the issue of low procurement of rice in eastern India, one of the major producing regions, in Parliament.

The government assured that a team would be sent to assess the situation and take corrective action. Overall, of the 22.45 million ton of rice that has arrived in the markets across the country, almost 18.22 million tons have been procured by the government.

India annually procures around 35-38 million ton of rice for the central pool to distribute it at cheap rates for the Public Distribution System (PDS). In 2012-2013, the government has targeted to procure around 40.1 million ton of rice for the central pool, around 15% higher than the actual procurement of 2011-2012.

As on November 1, 2012, the government has around 68.3 million ton of food grains in the central pool which included wheat and rice, while the storage space available with it was around 71.4 million ton, which also included covered area plinth and storage's with state governments.

Courtesy: Business Standard

India set to be the fastest growing trading nation

              Rising bilateral trade with China, growing consumer wealth and high confidence level among its traders will push India to the top league of trading nations beginning 2013 and it is set to retain the fastest growth rate till 2020, said HSBC.

"The growing Indo-China bilateral trade is set to increase significantly and the country will be the fastest expanding market for Chinese products, with import growth averaging 20 per cent annually during 2013-15 and 17 per cent during 2016-20, while exports clipping at 23 per cent during 2013-15 and 19 per cent during 2016-20," said the HSBC trade forecast released on Tuesday. India tops the tables for all 23 markets surveyed as either their fastest import or export growth partner out to 2020, it said.

The country also tops the HSBC trade confidence index apart from having the most promising global outlook with 61 per cent of traders expecting to see growth. "With a score of 135, India is the most confident country. Optimism has improved in the past six months with 71 per cent of importers and exporters surveyed expecting trade volume to increase and another 24 per cent anticipating business to remain at current levels," said the report that covered 5,800 exporters, importers and traders over the past six months in 23 markets.

This upside to trade will be backed by the growing consumer wealth that will push the country to be the fastest growing trade market - import or export or both - among the 23 largest trading markets, according to the forecast. The optimism comes from a dual speed trade rebound as South-South corridors become more established, driving growth to 2015 before being rejoined by the developed world in the later part of the decade, notes the report.

As per the report, India and China will be joined by emerging trading nations like Vietnam, Indonesia, Egypt, Turkey, Mexico and Poland to record significant trade growth in the next three years.

Courtesy: One India