Page 28 - Trade

Agricultural commodities may be significantly impacted by Red Sea crisis

The Red Sea crisis has led to a 122% rise in freight costs in the last few months, according to ICRA

Govt nod to proposal to set up trade committee of India, Dominican Republic

The government on Wednesday approved a proposal to sign a protocol for setting up a Joint Economic and Trade Committee (JETCO) between India and Caribbean nation Dominican Republic. A decision in this regard was taken in a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi here. The joint committee, an official statement said, will provide a platform for the exchange of information between various authorities and their counterparts. "This would help in facilitating trade of goods and services and consequentially help in better employment opportunities for professionals in both the countries," it said. The Cabinet "approved the proposal for signing of a protocol for the establishment of JETCO between the (Indian) Department of Commerce and the Ministry of Foreign Affairs of the Dominican Republic," the statement said. At present, there is no bilateral institutional mechanism between the two nations on trade and commerce, it added. India primarily imports gold fr

TVS, Bajaj Auto forecast lingering challenges to recovery of exports

On top of festive season, Bajaj Auto also benefited from strong demand for its premium motorcycles, led by the two Triumph models

Coffee exports from India decline by 5.4% to 377,000 tonne in 2023

Coffee shipments from India declined 5.4 per cent to 3.77 lakh tonne in 2023 due to a fall in the shipment of Robusta coffee, according to the official data. The country had exported 3.98 lakh tonne of coffee in 2022. India, Asia's third-largest producer and exporter, grows Arabica and Robusta variety of coffee. Arabica coffee bean has lesser caffeine content than the Robusta. Arabica has a sweet and smoother taste, while the Robusta is generally more bitter and harsher on the taste buds. According to the Coffee Board of India's latest data, export of Robusta coffee bean declined 15 per cent to 1.87 lakh tonne in 2023, from 2.20 lakh tonne in the previous year. However, the shipment of Arabica coffee bean rose 5.79 per cent to 46,869 tonne in 2023 from 44,302 tonne in the previous year. Even Instant Coffee exports rose 6.68 per cent to Rs 1.42 lakh tonne as against 1.33 lakh tonne in the said period, as per the data. In terms of value, total coffee exports were at Rs 9,580.58 cr

Bilateral trade between India, Russia likely to increase this year: Sonowal

Bilateral trade between India and Russia was at USD 50 billion in the last financial year and is expected to increase this year, said Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, here on Wednesday. The Eastern Maritime Corridor between the ports on the east coast of India and the Far East region of Russia promises "immense potential" to unlock new trade opportunities, he said. The minister was speaking at a conference on 'Operationalising Eastern Maritime Corridor' which was attended by a delegation from Moscow led by A Yu Bobrakov, Deputy Minister for the Development of the Far East and the Arctic of the Russian Federation, among others. While welcoming the visiting delegates, Sonowal said the India-Russia partnership is strong and steady building upon strategic convergence, geo-political interests and mutually beneficial cooperation. "Prime Minister Narendra Modi remains engaged with President Putin through telephonic conversation. The latest discussion t

Consensus on food security solution at WTO meet next month difficult: GTRI

Reaching an agreement on food stockpile issue at the WTO meet next month is difficult as both developed and developing countries have diverse views on the matter, economic think tank GTRI said on Tuesday. The Global Trade Research Initiative (GTRI) said that developed countries like the US argue that India's programme could distort trade. The issue will figure in the 13th ministerial conference (MC 13) at Abu Dhabi from February 26-29. MC is the highest decision making body of the 164-member Geneva-based global trade body WTO. "MC13 might not resolve the issue, showing the conflict between developing countries wanting to protect food security and developed countries pushing for free trade," the GTRI said in its report. India's top priorities for the MC13 include securing a permanent solution for its public stockholding (PSH) programme. This programme seeks flexibility in food procurement and pricing, crucial for India's food security needs. The PSH programme is a policy tool unde

Sunflower oil imports to falter as Red Sea attacks lift freight costs

The world's biggest sunflower oil buyer typically sources most of its imports from the Black Sea region via the Red Sea

Trade resumes as Pak and Afghanistan reopen Torkham border after 10 days

Trade between Pakistan and Afghanistan resumed on Tuesday after the two sides reopened a key northwestern border crossing shut for more than 10 days. Truckers for years have been able to cross the border without documents, so they generally do not have them. But Pakistan began mandating truck drivers get visas last week. The two sides after a series of meetings agreed to reopen the Torkham border crossing but Pakistan set a new deadline of March 31 for the truck drivers to get visas, said Ziaul Haq Sarhadi, a director of the Pakistan-Afghanistan joint Chamber of Commerce and Industry. Abdul Basir Zabali, the Taliban-appointed spokesman for the police chief in Nangarhar province, said the Torkham crossing was reopened after the two sides talked, but he didn't give details. The Torkham border crossing has been closed a number of times in recent months, mainly following clashes between the security forces for varied reasons including repairs of the border fence by Pakistan.

India likely to resume Iran crude oil imports due to Houthi threat

The issue may have been discussed during recent bilateral meetings between the countries last week when External Affairs Minister S Jaishankar travelled to Iran

Best of BS Opinion: Reconfiguration of global trade and FDI & more

Here is the best of Business Standard's opinion pieces for today

Reconfiguration of global trade and FDI

Third globalisation has seen slow but profound changes

Matter of concern, closely watching developments: India on Red Sea crisis

India on Thursday described as a "matter of concern" the unfolding security situation in the Red Sea and said it is closely watching the developments in the critical sea lanes in the region. External Affairs Ministry spokesperson Randhir Jaiswal reaffirmed India's emphasis on the importance to freedom of navigation and commerce in the Red Sea. Amid the Israel-Hamas conflict, the Houthi militants have been targeting commercial vessels in the Red Sea triggering global concerns. A guided missile destroyer of the Indian Navy on Thursday intercepted a cargo vessel with 22 crew members, including nine Indians, over an hour after the Marshall Island-flagged ship came under a drone strike in the Gulf of Aden. The US and the UK have already launched air strikes targeting the Houthi positions in Yemen. "It is a matter of concern to us. We give a lot of importance to freedom of navigation and freedom of commerce in that region. Whatever is happening there not just impacts us, but it impacts

Gem, jewellery exports slip 8.14% to Rs 18,281 crore in December: GJEPC

The overall gems and jewellery exports fell 8.14 per cent year-on-year in December to Rs 18,281.49 crore (USD 2,195.23 million), according to data released by the Gem Jewellery Export Promotion Council (GJEPC). The total exports stood at Rs 19,901.55 crore (USD 2,413.46 million) in the corresponding month of 2022, GJEPC said in a statement. "Sluggish demand across key export markets, geo-political scenario, and India and the USA, among 60 countries, going for elections this year, impacted the exports," GJEPC chairman Vipul Shah told PTI. Meanwhile, the overall exports of cut and diamonds dipped by 31.42 per cent to Rs 7,182.53 crores (USD 862.48 million) in December compared to Rs 10,472.93 crore (USD 1,270.36 million) for the same period of the previous year. However, the gold jewellery exports in December grew by 47.32 per cent to Rs 7,508.05 crore (USD 901.52 million) compared to Rs 5,096.25 crore (USD 618.27 million) for the same period of the previous year.

Waning supplies prop up India rates to 4-month peak, Thai prices rise

Supplies have also dropped, which also contributed to price increases. Traders said new supply is expected to enter the market around next month

Aramco CEO Nasser predicts tighter oil markets, sees Red Sea risks

Container vessels have been pausing or diverting from the Red Sea that leads to the Suez Canal, the fastest route from Asia to Europe, where about 12% of world shipping passes

Shipping industry CEOs see no short-term end to Red Sea disruptions

Among the other leaders watching the renewed threats to supply chains was European Central Bank President Christine Lagarde

Integrate more districts in export initiatives to boost shipments: DGFT

More and more districts need to be integrated with export initiatives to help boost the country's outbound shipments, a senior official said on Wednesday. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi also said that an increase in exports helps in enhancing per capita income. He said that four states - Gujarat, Maharashtra, Karnataka and Tamil Nadu - account for 65 per cent of India's exports and they also have a high per capita income. The DGFT also noted that only 62 districts out of over 760 in the country contribute about 80 per cent of India's exports. "So there is a need to integrate more and more districts in our export initiatives. Imagine if another 700 districts get involved in export activities, then our export potential will multiply," Sarangi said here while inaugurating the Federation of Indian Export Organisations' (FIEO) 'Sourcex India' exhibition. The three-day show will end on January 19 here. "There is a very positive correlation between export

'Engineering goods exports grow 10.20% in Dec amid global challenges'

Despite various challenges arising out of geopolitical tension and tight financial conditions in major advanced economies, India's engineering goods exports recorded a year-on-year growth of 10.20 per cent to USD 10.04 billion in December 2023. While this represents a strong rebound, the sector still faces uncertainties due to the prevailing global economic conditions, an EEPC official said. "It has been a challenging period for engineering exporters. Tensions in Europe and now in West Asia have posed significant downside risks," Engineering Export Promotion Council of India Chairman Arun Kumar Garodia said. "Projections indicate a potential slowdown in global growth in 2024, and factors such as high interest rates and low consumer spending are expected to continue affecting the sector this year," he said. Considering these factors, EEPC maintains a cautious optimism and hopes that geo-political tension will ease, leading to an improvement in the global macroeconomic situation, ...

Jump in cargo rates to hurt trade, India needs own shipping line: Exporters

Freight rates have skyrocketed by up to 600 per cent due to the Red Sea crisis which would hurt the world trade, say Indian exporters while suggesting the government should start its own shipping line of global repute. The freight hike issue was flagged in the meeting of the Board of Trade (BoT) chaired by Commerce and Industry Minister Piyush Goyal on Tuesday, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. He said "It is a serious issue" and the problem will hurt the global demand for goods besides pushing inflation in different countries. The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants. Due to these attacks, the shippers are taking consignments through the Cape of Good Hope, encircling Africa, resulting in delays of almost 14-20 days and also higher freight and insurance costs. "At so

Govt extends low tax on edible oil import by another year to cap prices

Traders and processors will benefit from a zero base import tax until the end of March next year, according to a finance ministry notification