Asian imports of Iranian oil hit highest in six months

TOKYO (Reuters) - Imports of Iranian crude by major buyers in Asia rose in September for a third straight month to their highest since March, boosted by a surge in purchases in China and South Korea.
China, India, South Korea and Japan imported slightly more than 1.9 million barrels per day (bpd) last month, up 5.1 percent from a year earlier, government and ship-tracking data showed. Their imports rose nearly 20 percent from August.
Still, purchases from the Asian buyers remain below highs that were hit earlier this year and last year as Tehran ramped up exports following the lifting of economic sanctions, after it had agreed to constraints on its disputed nuclear programme.
Imports by the Asian buyers, which take the bulk of Iran’s oil exports, are likely to fall in coming weeks as shipments bound for the region have dropped below 1.5 million bpd for October, a person with knowledge of the Middle Eastern nation’s tanker loading schedules told Reuters.Chinese imports from Iran in September rose nearly 60 percent from a year ago to about 784,000 bpd, down from August when China imported the highest monthly amount since 2006, according to data on Reuters Eikon.

South Korea’s imports rose by nearly a quarter to just over 504,000 bpd, a five-month high. India’s imports fell by a third to 415,400 bpd.

Imports to Japan, which announced official figures on Tuesday, were down by more than 30 percent at a bit less than 216,000 bpd.

U.S. oil exports boom, putting infrastructure to the test

NEW YORK/HOUSTON, Oct 30 (Reuters) - Tankers carrying record levels of crude are leaving in droves from Texas and Louisiana ports, and more growth in the fledgling U.S. oil export market may before long test the limits of infrastructure like pipelines, dock space and ship traffic.
U.S. crude exports have boomed since the decades-old ban was lifted less than two years ago, with shipments recently hitting a record of 2 million barrels a day. But shippers and traders fear the rising trend is not sustainable, and if limits are hit, it could pressure the price of U.S. oil.
How much crude the United States can export is a mystery. Most terminal operators and companies will not disclose capacity, and federal agencies like the U.S. Energy Department do not track it. Still, oil export infrastructure will probably need further investment in coming years. Bottlenecks would hit not only storage and loading capacity, but also factors such as pipeline connectivity and shipping traffic.
Analysts believe operators will start to run into bottlenecks if exports rise to 3.5 million to 4 million barrels a day. RBC Capital analysts put the figure lower, around 3.2 million bpd.The United States has not come close to that yet. A total of the highest loading days across Houston, Port Arthur, Corpus Christi and St. James/New Orleans - the primary places where crude can be exported - comes to about 3.2 million bpd, according to Kpler, a cargo tracking service.
But with total U.S. crude production currently at 9.5 million barrels a day and expected to add 800,000 to 1 million bpd annually, export capacity could be tested before long. Over the past four weeks, exports averaged 1.7 million bpd, more than triple a year earlier.
"Right now, there seems to be a little more wiggle room for export levels," said Michael Cohen, head of energy markets research at Barclays.
"Two to three years down the road, if U.S. production continues to grow like current levels, the market will eventually signal that more infrastructure is needed. But I don't think a lot of those plans are in place right now."
If exports do hit a bottleneck, it would put a ceiling on how much oil shippers get out of the country. Growing domestic oil production and limited export avenues could sink U.S. crude prices.Shippers have booked vessels to go overseas in recent weeks because the premium for global benchmark Brent crude widened to as much as $7 a barrel over U.S. crude , making exports more profitable for domestic producers.
EXPORT PLANS
Exports could hit 4 million bpd by 2022, an Enterprise Products Partners LP executive told an industry event in Singapore recently.
Though some operators are already eyeing expansion plans, there are limitations, said Carlin Conner, chief executive at SemGroup Corp, which owns the Houston Fuel Oil Terminal. SemGroup has three docks for exporting crude and is building additional ones.
"There aren't very many terminals with the needed pipeline capabilities, tank farm capacity and proper docks to load the ships ... Adding this is expensive and not done easily. So there are limitations to unfettered export access," he said.
For instance, exports are expected to start from the Louisiana Offshore Oil Port (LOOP) in early 2018 at around one supertanker a month, according to two sources. The LOOP is potentially a key locale for exports. Its location 18 miles (29 km) offshore means it can handle larger vessels than other, shallower ship channels.While LOOP can load around 40,000 barrels per hour, operating at that capacity is not likely because that same pipe is used to offload imports, the sources added. LOOP did not respond to a request for comment.
In Houston, when looking at the top 30 loading days, crude exports averaged 700,000 bpd, Kpler added. That includes Enterprise's Houston terminal, among the largest of the export facilities, that had 615,000 bpd.
Other terminal operators are also developing additional facilities. NuStar Energy LP currently can load between 500,000 to 600,000 bpd at its two docks in Corpus Christi, which has about 1 million in capacity, according to a port spokesman. NuStar is developing a third dock, which should come online either late first quarter or early second quarter.
In Houston, Magellan Midstream Partners LP is planning a new 45-foot draft Aframax dock for mid-2018. Aframax vessels can carry about 500,000 to 700,000 barrels of crude. (Reporting by Catherine Ngai in New York and Bryan Sims in Houston;

Import of sand from Malaysia raises hope of finding new avenues to tide over river sand crisis in Tamil Nadu

CHENNAI: The recent import of sand from Malaysia at V O Chidambaranar Port in Tuticorin has raised hope for city developers in finding new avenues to tide over the shortage of river sand for construction work, but the consignment is yet to leave the port premises.Touted as the first import of sand in Tamil Nadu, builders said it would help in a big way to reduce sand rates. The import by a private firm comes at a time when leading developers' bodies in the state are exploring the possibilities of ferrying sand from abroad to overcome the prevailing acute shortage of the key construction material.According to industry sources, a private firm based in Pudukottai has imported the consignment comprising 55,000 tonnes of sand from Malaysia last week. The cost of imported sand is estimated at Rs 60 per cubic feet, the sources said adding that river sand sourced from sand quarries in Tamil Nadu is sold anywhere between Rs 110 and Rs 120.
Honorary secretary of Builders Association of India, Southern Centre, Chennai, S Ramaprabhu said the import has boosted the efforts of developers, who are hit by non-availability of adequate sand for constructions, towards importing river sand from South-East Asian countries including Malaysia and Cambodia. "One consignment of 55,000 tonnes can cater for a week's requirement of sand in Chennai and peripheries.Sand could be delivered at the construction site at Rs 80 per cubic feet as an additional Rs 20 should be added for transporting from the port to respective destinations," he said. The state government should facilitate the initiative as it would be reduce the dependence on our riverbeds leading to environmental exploitation, he added. "The Tamil Nadu government must take a cue from neighbouring Karnataka as the latter has already taken up the initiative to source sand from foreign countries," he said.
When inquired about the reported restraint order issued by the district collector against transporting the imported sand, the collector did not respond while his PA (general) said he did not know anything about it.

India has ‘very strongly’ raised H-1B issue with US, says Suresh Prabhu

India has “very strongly” raised the issue of H-1B and L1 visas with the US, Union minister Suresh Prabhu said on Saturday, asserting that the American economy will find it difficult to cope with the reality as it has been immensely benefited by Indian IT professionals.

The US has tightened the norms for issuing the most sought-after H-1B and L1 visas in line with the Trump administration’s goal to protect American workers from discrimination and replacement by foreign labour.
In a new directive, the Trump administration this week made it more difficult for the renewal of H-1B and L1, popular among Indian IT professionals, saying that the burden of proof lies on the applicant even when an extension is sought.

Under the current US rules, Indian IT professionals working in the US on H-1B visas do not get back their hard- earned contribution to Social Security, which runs into at least more than US $1 billion per annum.
“We raised very strongly the issue of Indian professionals and H-1B and L1 visa issues,” Prabhu said after the first US-India bilateral Trade Policy Forum (TPF) under the Trump administration which was also attended by US Trade Representative Robert Lighthizer.

“We explained to them that we are not raising this issue because Indians will find it difficult to come, because US economy itself will find it difficult to cope with the reality because the US has immensely benefited by IT professionals penetrating into the market by offering services that has improved their productivity,” Prabhu said.
Batting for Indian IT companies, he also strongly raised the issue of totalisation.

“I hope they will look into the issue,” Prabhu said, as he pointed out towards the issue of mismatch between US visa and US social security regimes, wherein Indian professionals making social security contributions do not receive their due benefits upon their return to India.

Here's one thing that China says it cannot export

NEW DELHI: China's economic rise has for decades been driven by an export-based economic model. The Asian giant is now the world's factory and exports just about anything that can be made in a factory. But there is one thing that even China cannot export - its political and development model.

"Although the Chinese model is truly effective, China does not have the power to promote its political system or the political tools to do so," read an editorial in Global Times. The newspaper is run by the Chinese government and is considered a mouthpiece for the thought processes of the Communist Party.

The admission comes even as China hardsells the One Belt One Road (OBOR) initiative, which is an attempt to create a global market for its oversaturated construction sector while at the same time boosting its credit markets.

The OBOR project compounds a perception battle that China is already on the wrong side of. Countries across the world, especially China's neighbours, have stood witness to rising sabre-rattling and aggression. "Every country is free to decide whether to learn from China's experience, and China supports diversity in global political systems... Noninterference is the cornerstone of China's diplomatic policy," Global Times claimed.

This claim however flies in the face of increasing discontent and suspicion of Chinese business and investment practices activity, especially in Africa.

Global Times's effort to spin China alleged unwillingness to impose itself on other countries comes at a time when Xi Jinping has been confirmed his country's President for a second term and his pet OBOR initiative has been inserted into the country's constitution. The piece also took a reactionary tone to a buzz in Western media outlets that Beijing is promoting its political model to other countries. "In the past decades, the West has been enthusiastically promoting its so-called democratic system, not only through education and ideological brainwashing but also through "color revolutions" in emerging countries and, in extreme cases, by starting wars to "transform" Mideast countries. They think that since they have been "exporting models," China would do the same when it is powerful enough," the Global Times editorial said.

US agricultural export have grown 250 per cent: Official

WASHINGTON: American agricultural products have experienced a whopping 250 per cent growth in its exports to India in the last decade, a senior US official has said.
US Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney made the remarks ahead of his five-day visit to India starting Monday.
"US agricultural exports to India have grown nearly 250 per cent over the past decade, but the country's barriers impede exports of many of our products," he said.
McKinney is leading an agribusiness trade mission to India from October 30 to November 3 with stops in New Delhi and Mumbai.
On his first international trip in this position, he will head a delegation of approximately 50 business, trade association and state government leaders who are seeking to grow US agricultural exports to the world's second-most- populous country.
"On this trip, I look forward to not only promoting US farm and food products, but also to meeting with my Indian government counterparts to build relationships and address key trade policy issues in an effort to improve American access to this important market," McKinney said.

US agricultural exports to India totaled nearly USD 1.3 billion in 2016, with tree nuts, cotton, pulses, fresh and processed fruits, and prepared foods accounting for more than 80 percent of those exports.
India is also a major market for US ethanol exports.
The United States is India's top ethanol supplier, with sales totaling nearly USD 176 million in 2016.

Punjab millers double non basmati Rice purchase on export demand

Eying prospects of higher margins in export of non-basmati, private millers in Punjab this season have purchased more than double compared to corresponding period in the last kharif marketing season.This year millers have already bought around 2 lakh tonnes of paddy compared to 1.5 lakh tonnes in the entire procurement season in the last year. The procurement is midway in Punjab that contributed 165 lakh tonnes of paddy in 2016-17.
Export of Indian non basmati is growing more than basmati variety and the country exported 68 million tonnes of non-basmati in 2016-17. Around 32 million tonnes of non basmati was exported during April-August in 2017-18.Despite higher private purchase of non-basmati, the Food Corporation of India is assured of meeting its target of procurement in Punjab.Out of total procurement of 8395354 tonnes of paddy in all the procurement centers of Punjab, the Government agencies procured 8197315 tonnes of paddy (97.6%) till date whereas 198039 tonnes (2.4%) of paddy has been procured by millers, the government said.

Banks may resume consignment import of gold next week

Banks are gearing up to resume import of gold on consignment basis following the government's decision to allow banks to pay the goods and services tax (GST) of 3 per cent at the time of sale instead of import.

Consignment imports, which help the banks give spot delivery of gold when demand rises, had almost stopped since July 1, when the GST regime was rolled out.

“Import is expected to resume from next week as there is clarity on GST calculation,“ said Shekhar Bhandari, business head for global transaction (banking and precious metals) at Kotak Mahindra BankBSE 2.18 %. The volume of import will depend on the demand, he said.
In September, imports surged 31 per cent from a year ago to 48 tonnes as the industry anticipated higher demand during the festival season leading up to Dhanteras and Diwali. Traders said that most of the imports since July 1happened in the form of gold on loan to jewellers. Contrary to industry expectations, sale of gold and jewellery during the Dhanteras-Diwali period fell 30 per cent from a year ago. “It has been a slow start, but we are hopeful that it will gather momentum in the upcoming wedding season, which kicks off on November 4 and continues till mid ­December,“ said Nitin Khandelwal, chairman, All India Gems & Jewellery Trade Federation.

The Khandelwal-led federation is meeting on Friday to work out a promotional scheme for its members. “The scheme is called Lucky Lakshmi and we have started working on it,“ said Khandelwal.
Individual jewellers are also looking at giving discounts during the upcoming wedding season to lure customers. Saurabh Gadgil, chairman, PNG Jewellers said: “Generally we give discounts twice in a year ­ once during the lean season of May-July and then during Dhanteras ­ Diwali period. But this time we may have to offer discounts during the wedding season. It may not be huge discounts that we offer during Dhanteras but may be a reasonable one.“

Chile favours India's candidature to APEC: former President Eduardo Frei

Chile is open to support the candidature for membership of India in APEC but all the resolutions for the entry of a new country its decided by all the members of the group, pointed out former Chilean President Eduardo Frei ahead of APEC Summit in Vietnam next month.
Chile has an open economy and a stable institutional and political system, who installs a healthy business environment. With the 10 trade agreements signed between Chile and Latin-American countries, the possibilities to export and make business in the region are maximized, Frei told a select group of media here during his visit to push Indo-Chile economic partnership.
"Even more, Chile is one of founders of the Pacific Alliance, the most successful integration movement of the history of the Latin American region. Actually, its functions are becoming to been a platform of political articulation, economic and commercial integration and projection to the world, with emphasis on the Asia-Pacific region," noted Frei .
" I would like to express that the Trade Agreement that India and Chile was established in 2007, and then expanded in 2017 is not a Free Trade Agreement (FTA), it’s a Preferential Trade Agreement (PTA). The nature of this Agreement is relative minus ambitions of an FTA, because it’s does not contain chapters related intellectual propriety, electronic commerce, gender issues, environment or investment, among others. The entry on force of the PTA plus, has been the 16th of May of 2017,months ago. For this reason, today, is difficult to highlight an increase in trade on either side."

"Nonetheless, I trust, that the PTA Plus will increase the trade, in the same way that the exported non-copper products have triplicated from US$ 51 millions in 2006 to US$ 178 millions in 2016."

suresh prabhu's US trip to focus on more trade ,easier visas

NEW DELHI: Commerce and Industry Minister Suresh Prabhu is expected to discuss trade, visa and investment issues with his US counterpart when he travels to Washington DC this week for an interaction with the Trump administration.
Officials in the know said an informal discussion on the World Trade Organisation (WTO) is also likely in which India will seek support for its agenda. The meeting will also discuss the US president’s daughter and White House advisor Ivanka Trump’s upcoming India visit.
Under the new US administration, the decade-old strategic and commercial dialogue has been split. It was decided a few months ago that India and the US will hold 2+2 (foreign minister- and defence minister-level) strategic dialogues.

It was also decided to revert to a standalone commerce minister dialogue, and Prabhu's visit is aimed at that. Prabhu’s US visit coincides with US Secretary of State Rex Tillerson's trip to India to discuss USSouth Asia strategy, highlighting India’s importance in Washington's policy for the region.

In the trade policy forum, the commerce minister will raise the issue of high fee for H-1B visa and the need for totalisation agreement between the two countries. The agreement will allow temporary Indian workers in the US to repatriate their social security contributions when they leave the country. Former commerce minister Nirmala Sitharaman too had pushed for an agreement on this.
Prabhu will attend the India-US Trade Policy Forum and the third commercial dialogue from October 25 to 27, when he is expected to discuss a host of issues with Ambassador Robert E Lighthizer and his team. Prabhu will also hold talks with US secretary of commerce Wilbur Ross on facilitating investment.
Bilateral trade between India and US tops $100 billion, with the latter accounting for over 15% of India’s exports. In the first four months of the current fiscal, India exported goods worth more than $15 billion to the US. For the full year 2016-17, it was over $42 billion.

The agenda for the trade policy forum would include early resolution of market access for agriculture commodities, trade in non-agri commodities, services and intellectual property. Under the commercial dialogue cooperation and collaboration in standards, ease of doing business, innovation and entrepreneurship would be taken up. “The focus will be on increased bilateral interaction and momentum in resolving trade concerns…Both sides will review the progress achieved on the issues agreed and work out the way forward for 2018,” a senior official said.
Prabhu will also visit Cuba and Panama and meet their commerce ministers, besides interacting with the trade ministers of Suriname, Barbados, Dominican Republic and Haiti. India will explore whether “revolving credit lines could be an innovative way of boosting bilateral trade with these countries", an official said, adding that India will also discuss the possibility of an India-Carricom FTA to provide market access to products including agriculture items which pose no competition to India’s domestic agriculture sector. “Carricom also has market access to the USA through preferential trade arrangement.

Thus, we would have another opening to the US market through the Caribbean,” the official said. Prabhu is also likely to meet Raul Castro, President of Cuba, to discuss ways of boosting bilateral trade, which has been modest so far, partly due to the distance and lack of effective shipping connections.

Hyundai Motor India bags biggest-ever export order for 10,501 Vernas

Hyundai Motor India, the country’s second largest car manufacturer, has bagged an initial export order from the Middle East for 10,501 units of the recently launched new Verna sedan. The car will be known as the next-gen Accent in the Middle East markets.
This, according to Hyundai, is the single largest order for the Verna and a big jump compared to the earlier generations of the Verna and Accent. The new Verna will also be exported to South Africa, other Gulf and Asian countries from early 2018.
The order follows the visit of the company’s 33 distributors from the Middle East (including Saudi Arabia, Oman and UAE) and other Asian countries (Vietnam, Philippines, Sri Lanka) to the Chennai-based production facility on September 21, 2017, where they were given a detailed plant tour, a presentation on the product, its quality parameters and the plant capabilities, along with a driving experience.

Commenting on the new export order, Y K Koo, MD and CEO, Hyundai Motor India, said: “The new Verna has received an overwhelming response from domestic and export markets. We are very happy to receive such a large single export order within one month of showcasing the product to the distributors from overseas markets.” 

Since its launch in the domestic market on August 22 this year, the new Verna has received over  18,600 bookings and more than 143,000 enquiries. These additional new orders will be shipped in December 2017, along with the delivery of 20,000 units by end-December 2017 in the domestic market at a special introductory price, as committed during the product launch, says Hyundai.The new export order will give a boost to the company’s slowing exports. In the fiscal year till now (April-September 2017), Hyundai Motor India has exported a total of 70,525 units, down 19.40 percent, which puts it behind Maruti Suzuki India, which has shipped 82,347 units (+11.55%).

No official notification of 3-wheeler import ban in Sri Lanka yet: Bajaj Auto

Bajaj Auto stock is under pressure on back of reports that suggest Sri Lanka will restrict import of 3-wheeler taxis and the company is one of the primary exporters of that segment.

Discussing the impact of this on sales and overall exports, S Ravikumar, President of Business Development and Assurance, Bajaj Auto said they are yet waiting for official notification on the import ban in Sri Lanka for 3-wheelers and in touch with their distributors over there.

He said Sri Lanka's budget is due next week and usually before that these kind of reports come.

In the current year, between domestic and international, the company is looking at sale of 6 lakh three-wheelers, said Ravikumar, adding that so the numbers are quite good.Moreover, the total dependence on Sri Lanka with regards to 3-wheeler exports is 6 percent of overall number.

However, currently he says the demand for exports have risen in the current year and demand is outstripping production. The production is running at about over 100 percent installed capacity and will continue for next few months even if Sri Lanka news is true, says Ravikumar. So, see not impact on demand for the company and impact on earnings contribution of the company, he adds.

Moreover, with de-risking strategy in mind the company has come out with a 'Qute' model which has all the benefits of three wheelers and is low risk and has low emission.

With regards to festive sales, he says they in par with the guidance of 25 percent sales for the season. Saw good traction for Platina and CT100, and Pulsar is also doing great, he says.

Russian wheat export prices flat as exports stay at record high

MOSCOW, Oct 23 (Reuters) - Russian wheat export prices were largely flat last week as the country continued to export record grain volumes, analysts said on Monday.
Egypt, the world's largest wheat importer and the biggest buyer of Russian wheat, bought 230,000 tonnes of Russian wheat in a state tender last week.
Black Sea prices for Russian wheat with 12.5 percent protein content and for November delivery were at $192.5 a tonne on a free-on-board basis at the end of last week, up slightly from $192 a week earlier, agriculture consultancy IKAR said.
SovEcon, another Moscow-based consultancy, said wheat and barley prices remained at $192.5 per tonne and $189.5 per tonne, respectively. Maize (corn) prices were up at $164-166 per tonne from $161-163 in early October.
Geneva-based grain trading firm Grainbow filed a case in an Egyptian administrative court against Egypt's state grain buyer GASC in relation to a Russian wheat sale, sources close to the matter told Reuters last week.Risks for Russian wheat supplies to Egypt may rise slightly due to the Grainbow case, SovEcon said. Only suppliers of French and Romanian wheat have been experiencing issues with Egyptian quarantine inspections in recent months, while Russian wheat has had no problem with Egyptian regulation since March.
As of Oct. 18, Russia had exported 14.447 million tonnes of grain since the start of the 2017/18 marketing season on July 1, up 22.3 percent from a year earlier. Wheat exports were up 15.7 percent at 11.202 million tonnes.
Russia, one of the world's largest wheat exporters, is expected to produce a record grain crop this year. As of Oct. 19, farmers had harvested 133 million tonnes of grain, before drying and cleaning, from 95 percent of the total area.
Its farmers have also sown winter grains for next year's crop on 93 percent of the planned area, or on 16.2 million hectares, compared with 15.8 million hectares by the same date a year ago, the Agriculture Ministry said.Most of the European part of Russia saw rains last week, which should improve the condition of winter grain sowings, SovEcon said.
Domestic prices for third- and fourth-class wheat were flat at 8,175 roubles and 7,400 roubles a tonne, respectively, in the European part of Russia on an ex-works basis, according to SovEcon. Ex-works supply does not include delivery costs.
Russian sunflower seed prices continue to fall as the new crop hits the market. They were down 425 roubles at 16,600 roubles per tonne last week, SovEcon said.
IKAR's white sugar price index for southern Russia fell $6 to $408 a tonne as of Oct. 20.

Russian wheat export

Bangladesh signs gasoil import deal with India

DHAKA (Reuters) - Bangladesh on Sunday signed a long-term sales and purchase agreement with an Indian refiner to import gasoil to meet the country’s energy demand, officials said.

The deal between Bangladesh Petroleum Corp (BPC) and Numaligarh Refinery Limited (NRL) was signed in presence of India’s External Affairs Minister Sushma Swaraj, who arrived in Dhaka on Sunday on a two-day visit to discuss bilateral issues.

Her visit comes as Bangladesh is struggling to cope with an influx of almost 600,000 Rohingya Muslim refugees from Myanmar since Aug. 25 when the U.N. says the Myanmar army began a campaign of “ethnic cleansing” following insurgent attacks.

The deal with NRL, which is majority owned by refiner Bharat Petroleum Corp Ltd (BPCL), is the country’s first long-term agreement with any Indian supplier.
Under the deal, BPC will take up to 250,000 tonnes of gasoil each year from NRL for the first three years of the deal to the BPC’s northern fuel depot via a 131-km (79 mile) pipeline, which will be built by India.

The import volume will be increased in line with demand, a senior BPC official said, adding the deal would come into effect when the pipeline is built.

BPC will pay a premium of $5.50 per barrel over Middle East quotes under the 15-year deal, up from the current premiums of $2.20 a barrel for gasoil cargoes it receives by tanker through the country’s southeastern port of Chittagong, the official said.

“The premium is cost-effective as there is no added cost as the supply will be delivered to the deport in the northern part,” the BPC official said.
NRL already supplies a small volume to state-owned BPC for the country’s northern region.

The refinery, located in the eastern Indian state of Assam, will supply around 22,000 tonnes of gasoil with a sulphur content of 500 parts per million (ppm) between October and December by railroad, BPC officials said.
BPC received its first batch this month under the three-month agreement.

Bangladesh typically ships in around 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually.

Sellers include Kuwait Petroleum Corp, Malaysia’s Petroliam Nasional Berhad, Emirates National Oil Company, Philippines National Oil Co, Vietnam’s Petrolimex, Thailand’s PTT, Indonesia’s Bumi Siak Pusako and Zhenhua Oil.

Bangladesh to import 100,000 tons of boiled rice from India

DHAKA: The government has decided to import 100,000 tons of boiled rice from India to meet the growing domestic demand created by crop losses in recent floods. A Food Ministry official said Bangladesh will buy that total amount of rice at a cost of Tk 377.65 crore – each ton costing $455 or Tk37,487. The rice will be imported under government-to-government (G2G) basis.
The ministry’s proposal will be placed at the meeting of the cabinet committee on public purchase and economic affairs on Wednesday, with an alternative chairman in the chair as Finance Minister AMA Muhith is currently in Washington to attend the World Bank and International Monetary Fund annual meeting, said the official. The official also added that per ton rice from India will cost more than Tk823 compared to the rice imported from Myanmar. The 100,000 tons rice import will be the first of its kind arrangement between Bangladesh and India in recent years. India on September 3 had decided to export around 500,000 tons of parboiled rice to create a buffer stock. According to the Food Ministry proposal, the India government’s authorised agro cooperative National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) will export the rice to Bangladesh.
Bangladesh is currently facing a shortfall of 1.5 million tons of rice due to heavy crop losses during the recent flooding in different districts across the country. After the floods, around 150,000 tons of rice has been exported to Bangladesh by private traders from India until now. Amid strained relations with Myanmar over the Rohingya refugee crisis, last week the cabinet committee on public purchase had also approved the Food Ministry’s deal on procuring of 100,000 tons of rice – each ton costing $442 or Tk36,416 – from Myanmar in a bid to bring down the prices in local markets.

India Tightens Gold Import Norms For Nominated Agencies

Mumbai: India tightened gold import norms for nominated agencies by restricting them from importing the yellow metal only for export purposes and not for selling in the domestic market, the government said in a circular on Wednesday.

"...are permitted to import gold as input only for the purpose of manufacture and export by themselves during the remaining validity period of the Nominated Agency certificate," the government said in the circular.

Some nominated agencies, which account for nearly a quarter of total imports by India, were taking advantage of India's free trade agreement with neighbouring countries and importing the bullion without paying import duty, prompting the government to impose these curbs, analysts said.

India is the world's second largest gold consumer importing on an average 75 tonnes every month in 2017 before tapering to 48 tonnes in September.

India tightens gold import norms for nominated agencies

India tightened gold import norms for nominated agencies by restricting them from importing the yellow metal only for export purposes and not for selling in the domestic market, the government said in a circular on Wednesday.
"...are permitted to import gold as input only for the purpose of manufacture and export by themselves during the remaining validity period of the Nominated Agency certificate," the government said in the circular.
Some nominated agencies, which account for nearly a quarter of total imports by India, were taking advantage of India's free trade agreement with neighbouring countries and importing the bullion without paying import duty, prompting the government to impose these curbs, analysts said.
India is the world's second largest gold consumer importing on an average 75 tonnes every month in 2017 before tapering to 48 tonnes in September.

Newest outpost for U.S. crude exports: India

NEW YORK/NEW DELHI (Reuters) - India is set to emerge as a key market for American crude exports in coming months, as refineries in that country are ramping up "test" purchases of U.S. grades to diversify their imports.
U.S. exports recently set a weekly record with nearly 2 million barrels of crude a day sent overseas. But shipments to India have been rare, with just a few deliveries since the U.S. lifted its ban on crude exports in late 2015.
Indian refineries are starting to increase purchases as the country seeks to secure more supply from outside the Middle East. Refiners are testing both U.S. sweet and sour crudes in their facilities, a common practice when importing crude from new sources.
"A lot of these (Indian refiners) want to see what it's like if they run it," said one Houston-based oil broker. "They want to get a taste of U.S. crude."
Those refiners are taking advantage of a wide spread between U.S. oil and other global benchmarks, which has created an attractive discount on American crude grades.
Foreign refiners, including those in India, have bid up those physical grades against the U.S. crude benchmark to multi-year highs, traders and brokers said. That includes onshore grades from the Permian Basin in West Texas and the Eagle Ford further east, as well as offshore U.S. Gulf grades including Mars Sour and Southern Green Canyon.
In June, Indian Prime Minister Narendra Modi and U.S. President Donald Trump met and discussed energy exports to India. Since then the Modi administration has been encouraging more crude imports by waiving some shipping requirements.
Indian refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corporation Limited were given a special permission by the shipping ministry to import oil from the United States until March.
"They've been stepping up to be a sizeable importer; they're looking to diversify away from the Middle East," said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.
The executive of India's state-owned Hindustan Petroleum Corp Ltd said in August the company was assessing whether U.S. crude could replace Nigerian barrels; it made its first buy of U.S. oil in September.
One supertanker carrying nearly 2 million barrels discharged in India earlier this month, according to Eikon shipping data, while two other vessels carrying a combined 3 million barrels are set to arrive in November.
Prior to this, U.S. crude rarely went to India, with only one month this year - February - showing deliveries, according to U.S. EIA data through July.
In August, IOC bought 950,000 barrels of light sweet Eagle Ford shale oil and 950,000 barrels of heavy sour Mars crude for end-October delivery from trading firm Trafigura. In October the company bought 1 million barrels each of U.S. Southern Green Canyon (SGC) and WTI Midland crude.
In October, India's Reliance Industries Ltd, the world's largest refining complex, purchased 1 million barrels of Midland and a similar-sized cargo of Eagle Ford crude for November delivery.

India’s exports rise faster than imports in September

NEW DELHI: India’s external trade turned positive, perhaps for the first time, with growth in exports surpassing that of imports for the first time, in September 2017, bringing festive cheer for exporters and policy-makers. Merchandise exports from the country moved to a higher growth trajectory of 25.67 per cent with September exports reaching $28.61 billion, helped by better performance by all the top 10 commodity groups, ranging from engineering items to textiles. Although exports have been in the positive zone for the past 13 month, it is for the first time that growth in exports surpassed that of imports. The trade deficit, too, narrowed in September by 0.95 per cent to $8.98 billion against 9.07 billion in September last year, but the overall trade deficit during the April-September 2017-18 period stood at $72.13 billion. Cumulative exports during April-September 2017-18 stood at $147.19 billion against cumulative imports of $219.32 billion, leaving a gap of $72.13 billion.
Import growth rate was slightly lower than export growth, with gold imports declining by 5 per cent. Imports into the country increased 18.09 per cent in September 2017 to $37.59 billion, according to an official data released on Friday. Imports during September 2017 were valued at $37.60 billion (Rs242,282.96 crore) which was 18.09 per cent higher in dollar terms and 14.02 per cent higher in rupee terms over the level of imports valued at $31.84 billion (Rs212,486.28 crore) in September 2016. Cumulative value of imports for April-September 2017-18 stood at $219.32 billion (Rs141,1872.70 crore) against $175.34 billion (Rs1,173,664.70 crore), recording a positive growth of 25.08 per cent in dollar terms and 20.30 per cent in rupee terms over the same period last year. Exports during September 2017 were valued at $28.61 billion (Rs. 184387.36 crore ), showing a growth of 25.67 per cent in dollar terms and 21.35 per cent in rupee terms compared to exports valued at $22.77 billion (Rs151,950.74 crore) in September 2016. Apart from engineering goods exports, which posted a sharp increase of 44 per cent during the month to $7.32 billion, other sectors that registered growth included gems and jewellery, petro products, organic and inorganic chemicals, readymade garments, drugs and pharmaceuticals, cotton yarn/fabs/made-ups, handloom products, marine products, rice and electronic goods. Oil imports, at $8.18 billion were 18.4 per cent higher than in September 2016. Non-oil imports, at $29.40 billion, were 17.9 per cent higher. Gold imports came in at $ 1.71 billion.

India Exports Imports

Indonesia revises up Aug exports, imports

JAKARTA, Oct 16 (Reuters) - Indonesia's statistics bureau on Monday said it had revised the value of August's exports and imports, but maintained the trade surplus figure. August exports were revised up to $15.23 billion from $15.21 billion, while imports were revised to $13.51 billion from $13.49 billion. The bureau maintained Indonesia's trade surplus in August at $1.72 billion. The bureau on Monday gave early calculations of foreign trade of Southeast Asia's largest economy in September, showing a surplus of $1.76 billion. EXPORTS IMPORTS TRADE value $ y/y % value $ y/y % BALANCE $ 2017 Sept 14.54 +15.60 12.78 +13.13 +1.76 Aug 15.23 +19.41 13.51 +9.08 +1.72 July 13.62 +41.12 13.89 +54.02 -0.27 June 11.66 -11.71 9.99 -17.40 +1.67 May 14.35 +24.55 13.77 +23.58 +0.58 April 13.28 +13.60 11.95 +10.46 +1.33 March 14.68 +24.27 13.29 +17.53 +1.40 Feb 12.61 +11.46 11.35 +11.58 +1.26 Jan 13.40 +26.65 11.97 +14.34 +1.43 2016 145.19 135.65 +9.53 Dec 13.83 +16.07 12.78 +5.84 +1.05 Nov 13.50 +21.41 12.67 +9.98 +0.83 Oct 12.74 +5.13 11.51 +3.59 +1.24 Sep 12.58 -0.07 11.30 -2.26 +1.28 Aug 12.75 +0.22 12.39 -0.11 +0.37 July 9.65 -15.84 9.02 -10.56 +0.63 June 13.21 -2.28 12.10 -6.80 +1.11 May 11.52 -9.70 11.14 -4.07 +0.38 April 11.69 -1080 10.81 -14.36 +0.88 March 11.81 -13.36 11.30 -10.37 +0.51 Feb 11.32 -7.03 10.18 -11.60 +1.14 Jan 10.58 -20.11 10.47 -17.01 +0.01

Gold import surges over 2-fold to USD 16.95 bn in Apr-Sep

New Delhi, Oct 15 () Gold import surged by more than two folds to USD 16.95 billion during the first half of 2017- 18, according to the commerce ministry data.
Gold import, which has a bearing on the country's current account deficit (CAD), was worth USD 6.88 billion in April- September 2016-17.
In September this year, import of the precious metal dipped by 5 per cent to USD 1.71 billion from USD 1.80 billion in the same month of the previous fiscal.
Contraction in gold import last month helped narrow the country's trade deficit to a 7-month low of USD 8.98 billion.
However, the import of the metal is expected to increase on account of the festival season, which has started this month.
Increase in inbound shipments of gold also bloated the current account deficit (CAD) to USD 14.3 billion, or 2.4 per cent of the GDP, in the three months to June in 2017-18.In general terms, CAD refers to the difference between inflow and outflow of foreign exchange that has an impact on the exchange rate.
Worried over surge in gold imports from South Korea, with which India has a free trade agreement, the government restricted inbound shipments of the precious metal.
India is the world's second biggest gold consumer after China. The import mainly take care of demand of the jewellery industry.
At present, gold import attracts 10 per cent duty. The gems and jewellery industry along with the commerce ministry have time and again urged the finance ministry to consider a cut in the import duty.

Export Summary-South Korea buys corn

CHICAGO, Oct 13 (Reuters) - The following is a snapshot of global export markets for grains, oilseeds and edible oils as reported by government and private sources as of the close of business on Friday:
CORN PURCHASE: South Korea's Korea Corn Processing Industry Association (KOCOPIA) purchased about 60,000 tonnes of corn thought likely to be sourced from the United States in a tender which closed on Friday, European traders said. The corn was purchased at about $191.30 a tonne c&f including surcharge for additional port unloading for arrival in South Korea around Jan. 25.
PENDING TENDERS:
WHEAT TENDER: Iraq's state grain buyer is seeking 50,000 tonnes of wheat in a tender, Baghdad-based traders said. The deadline for offers is Oct. 16 and offers must remain valid until Oct. 22, the sources said. Iraq is seeking wheat of U.S., Canadian and Australian origins, at the seller's option.
WHEAT FLOUR TENDER: The state purchasing agency in Mauritius issued an international tender to buy 52,825 tonnes of wheat flour to be sourced from optional origins, European traders said. Tender deadline is Oct. 16. Shipment was sought between Jan. 1 to Dec. 31, 2018, in a series of consignments, they said.
RICE TENDER: Iraq's state grain buyer is seeking 30,000 tonnes of rice of any origin, traders said. The deadline for the offers is Oct. 16 and offers should remain valid until Oct. 22, they said.
WHEAT TENDER: The Ethiopian government issued an international tender to buy about 400,000 tonnes of milling wheat, European traders said. The tender deadline is Oct. 17. Origin is optional and delivery is sought up to Feb. 7.
BARLEY TENDER: Jordan's state grain buyer issued an international tender to purchase 100,000 tonnes of animal feed barley to be sourced from optional origins, European traders said. Tender deadline is Oct. 17.
WHEAT TENDER: Jordan's state grains buyer again issued an international tender to purchase 100,000 tonnes of hard milling wheat which can be sourced from optional origins, European traders said. The tender closes on Oct. 18, they said. A new tender had been expected after Jordan made no purchase in its previous tender for 100,000 tonnes on Wednesday, when only one trading house was said to have taken part.FEED WHEAT AND BARLEY TENDER UPDATE: Japan's Ministry of Agriculture said it received no offers for feed-quality wheat or barley in a simultaneous buy and sell (SBS) auction that closed late on Wednesday. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley in the tender that is usually conducted weekly. It is seeking the same amounts for each grain in a similar tender that will be held on Oct. 18.

Oil rises on tighter U.S. market, strong China imports

SINGAPORE (Reuters) - Oil prices rose on Friday as both U.S. crude production and inventories declined, pointing towards a tightening market.
Strong Chinese oil import data also supported crude prices, traders said.

With the Organization of the Petroleum Exporting Countries (OPEC) leading a production cut, analysts said that global oil markets were now broadly balanced after years of oversupply.

U.S. West Texas Intermediate (WTI) crude futures were trading at $50.88 per barrel at 0350 GMT, up 28 cents, or 0.6 percent, from their last settlement.

U.S. crude inventories dropped 2.7 million barrels in the week to Oct. 6, to 462.22 million barrels, the Energy Information Administration (EIA) said late on Thursday.

Crude production slipped 81,000 barrels per day (bpd) to 9.48 million bpd.
In international markets, Brent crude futures were at $56.51, up 26 cents, or 0.5 percent.

Strong Chinese oil imports, which averaged 8.5 million bpd between January and September, also supported prices, traders said.

September’s imports were slightly over 9 million bpd, solidifying China as the world’s biggest importer.

“The rebalancing of the oil market has made significant progress over this time, although there is still some way to go to get back to the five-year average,” said William O‘Loughlin, investment analyst at Australia’s Rivkin Securities.

Bernstein Research said that it expected fuel inventories to continue falling, although they added that OPEC would need to extend the cuts beyond the current expiry date in March 2018 to further reduce excess stocks.“OPEC will not achieve normalized inventory levels before cuts expire at the end of March,” Bernstein said, but added that “we believe an extension of cuts through 2018 should allow inventories to reach normalized levels before the end of 2018.”

OPEC, together with other producers including Russia has been restraining output since January. The pact to cut production is set to expire by the end of March 2018, and there are discussions for an extension.

Traders said they were awaiting a decision later on Friday by U.S. President Donald Trump on whether to continue to certify the 2015 Iran nuclear deal.

Trump is expected not to certify the agreement, which has to be re-certified every 90 days and is due for renewal on Sunday.

The step would not withdraw the United States from the deal but would give the congress 60 days to decide whether to reimpose new sanctions.

“U.S. sanctions could cut off a lot of Iranian oil trade finance,” FGE President Jeff Brown told Reuters this week.

“Last time we saw this, it cut off 1 million bpd of supplies. I don’t think it’d be that big this time round, but it would still be significant,” said Brown.

China September exports up 8.1%, imports up 18.7% as trade with North Korea slides

In September, China's exports were up 8.1 percent from a year ago in dollar terms, while imports were up 18.7 percent
Analysts polled by Reuters expected a 8.8 percent rise in dollar-denominated exports and a jump of only 13.5 percent for dollar-termed imports in the same period.
Workers operate machinery on the assembly line at a Lyric Robert factory, operated by Guangdong Li Yuanheng Intelligent Automation Co., in Huizhou, Guangdong province, China, on Monday, April 18, 2016.

Workers operate machinery on the assembly line at a Lyric Robert factory, operated by Guangdong Li Yuanheng Intelligent Automation Co., in Huizhou, Guangdong province, China, on Monday, April 18, 2016.
China reported strong trade data on Friday just days ahead of a major Communist Party Congress.

In September, China's exports were up 8.1 percent from a year ago in dollar terms, while imports were up 18.7 percent.

Analysts polled by Reuters expected an 8.8 percent rise in Chinese exports in September from a year ago in dollar terms. Dollar-denominated imports were forecast to jump 13.5 percent in the same period.

September's figures were an improvement from August when exports were up 5.5 percent from a year ago in dollar terms, while imports were up 13.3 percent in dollar terms.

Even though September exports missed the analyst forecast, they were still robust as a strengthening Chinese yuan would have an impact on the data, said Chi Lo, senior economist for Greater China at BNP Paribas Investment Partners.

"But it seems the global demand is still there to support the demand for Chinese exports," said Chi, who described Friday's trade data release as "pretty good."
China's September trade surplus was $28.47 billion — the lowest since March 2017.

China's August trade balance was $41.99 billion, data from the General Administration of Customs showed.

China's economic data have been showing robust growth ahead of leadership changes set to happen at the upcoming Party Congress.

Huang Songping, spokesman for the Customs department told a press conference on Friday that trade for the first three quarters improved due to a recovery in overall global and domestic economic environment. There has been a return in global demand, he added.

Barring unforeseen events, China's will post double-digit growth in foreign trade this year, said Huang.

Many expect the mainland's economy to slow in the later part of the year due to a crackdown on debt and as the property market cools.

Huang also highlighted uncertainties, including politics, in the fourth quarter.

BNP Paribas' Chi told CNBC that the "Trump factor is a pretty big one," particularly as China's trade surplus with the U.S. remains elevated while its trade surplus with the rest of the world declines.
On Friday, China reported a record trade surplus with the U.S. at $28.08 billion in September, according to Reuters calculations.

"I am expecting trade frictions between the U.S. and China to hurt some Chinese exports," Chi said.

The yuan would also weigh on shipments out of the country if its strength is sustained, Chi added.

Trade with North Korea

Chinese Customs also highlighted a slide in trade with North Korea at its Friday press conference.

According to Huang, imports from North Korea tanked 37.9 percent in September from a year ago, marking its seventh month of decline. Imports of coal, iron ore, and apparel fell, while there was no record of seafood imports, he added.

Chinese exports to North Korea fell 6.7 percent in September.

Chinese trade with North Korea has been under the microscope amid multiple missile and nuclear tests from the reclusive regime that have escalated tensions on the Korean Peninsula.

Indonesia Palm Oil exports rise 24% in August

Indonesia's exports of Crude Palm Oil and its derivatives rose 24 percent to 2.98 million tons in August 2017 from 2.40 million tons in the preceding month, according to latest data from the Indonesian Palm Oil Producers Association (Gapki).

India is showing growing demand for Indonesian palm oil, even though the world's largest Palm Oil importer implemented higher import duties. Earlier this year, India doubled import duties on CPO from 7.5% to 15% in an effort to protect its domestic palm oil farmers. India also raised the levy on refined, bleached and deodorized (RBD) palm olein by 10% to 25%.

Palm oil shipments to China touched a record this year as exports to the world's second-largest economy rose 169 percent from 167,280 tons in a month earlier to 449,200 in August 2017.

Shipments to China rise because the nation is safeguarding sufficient Palm Oil reserves at home, Gapki said.

Oil imports: India readies to play hardball with suppliers over pricing

New Delhi: After telling Organization of the Petroleum Exporting Countries (Opec) members on Sunday that India has other options to buy oil at competitive prices, New Delhi is set to play hardball with its traditional suppliers from the Middle East on pricing.

India is reworking its import strategy by stepping up the share of short-term contracts to take advantage of the bear market and is exploring long-term supply deals at discounted price with its newest oil trade partner, the US, the re-entry of which in global oil markets last year has stepped up competition among suppliers.

“The economics of oil is very dynamic. We have some long-term contracts with the Middle East (suppliers) which we will continue with. Wherever we get competitive prices, we will buy. Price is very sensitive to us,” oil minister Dharmendra Pradhan said at a press conference.

In the medium term, India’s negotiating power on oil will get extra muscle when its under-construction liquefied natural gas (LNG) import terminals will start meeting part of its energy requirement in transportation, power generation and in fertilizer production. Two LNG terminals of 5 million tonnes each are coming up at Ennore in Chennai and at Dhamra in Odisha.
The likely expansion of the electric vehicle industry too is expected to give India extra negotiation power in its oil trade.

Pradhan had last Sunday told Sanusi Mohammed Barkindo, the visiting secretary general of Opec, that New Delhi has other buying options, an oil ministry statement said on that day.

Pradhan’s message to the 14-member producers’ grouping urging “responsible pricing” came after the first shipment of US crude reached Indian Oil Corp. Ltd’s Paradeep refinery on 2 October at a $2 per barrel discount compared to Dubai crude. Opec accounts for 86% of crude oil, 75% of gas and 95% of liquefied petroleum gas (LPG) that India imports.

It is economics that is driving purchase decisions as a discount of $2 a barrel could bring huge gains, said an Indian Oil Corp. official on condition of anonymity.

“Whatever can be saved in the price of crude, automatically goes to the refiner’s bottom line as crude accounts for the biggest cost in refining business,” said the official. Indian state-owned refiners have already placed a cumulative order 7.85 million barrels from the US.
The entry of the US in the oil exports market has increased competition among suppliers, said Richard Joswick, managing director-oil group, PIRA Energy, a forecasting and analytics unit of S&P Global Platts.

“The US entering the global crude export market, along with the surging growth in US shale oil production, will result in one of the largest changes in oil trade in many years. In a few years time, the US gross exports should hit 3 million barrels per day or more. That would put it ahead of most of the Opec countries,” said Joswick.

Experts also said that a persistent oversupply situation has rendered crude oil a buyer’s market, curtailing the ability of Opec members to influence pricing by adjusting supplies. Recent efforts of cutting output by Opec has also failed to prop up prices as US shale producers are continuously adding more output to the market.

Rahul Prithiani, director of Crisil Research, said that countries like India, China and Japan have raised their imports of US crude in recent months.

China imported an average of 100,000 barrels of crude a day from the US during the first five months of 2017, 10 times the level for the same period last year, increasing its share of US imports to 2% from 0.1% last year, said Prithiani. In the same period, the share of Chinese oil imports from Middle East has declined to 41% from about 47%.“With more competition in the market and weak demand growth, pricing will be competitive which is great for buyers like India,” he said.

Indians prefer India-made goods for Diwali; Chinese goods may suffer

New Delhi: This Diwali, Chinese items such as like  lights, gift items, lamps and wall hangings among others could see a decline of upto 45 percent as people are preferring  Indian products, said industry chamber Assocham.

“There has been a 40-45 percent impact on goods like decorative lights which records huge sales during Diwali, whereas a slight impact has also been seen on China-made electronic goods like mobile phones etc. As per the paper, the demand of electronic items like LCDs, mobile phones and others items made in China has also declined by 15-20 per cent,” said  D.S. Rawat, secretary general Assocham releasing the paper.

The chamber said  that as per its findings people are preferring Indian products over Chinese goods during this Diwali.
“According to the shopkeepers, most of the customers are demanding Indian lights.  People are not interested in purchasing Chinese products while showing interest in local products including earthen diyas,” said Assocham. It said there was a huge demand for made in China fancy lights in the market but it is also decreasing.

“Also, the quality of Chinese products is also questionable with no shopkeeper giving any sort of guarantee on Chinese items once sold. Fire crackers made at Sivakasi in Tamil Nadu are preferred in comparison to Chinese crackers,” said the chamber.Assocham said it interacted with wholesalers, retailers, traders in cities of Ahmedabad, Bangalore, Bhopal, Chennai, Dehradun, Delhi, Hyderabad, Jaipur, Lucknow and Mumbai to estimate the demand for Chinese products across India.

“According to an estimate, the value of Chinese goods sold in 2016 during Diwali was around Rs 6,500 crore. Out of the total, over Rs 4,000 crore was Diwali-related items such as toys, fancy lights, gift items, plastic ware, decorative goods among others,” it said. 

India is a big market for Chinese products and over the years import of toys, furniture, building hardware, crackers, lighting and electric fittings, furnishing fabric, office stationary, electronic appliances, consumer  electronics, kitchen equipment & appliances, gift items and watches from China has increased to a great extent in India, said Assocham.

India's coffee exports up 9.36% in 2016-17 marketing year

Coffee exports from India, Asia’s third-largest producer and exporter of coffee, rose by 9.36 per cent to 3,76,873 tonne in the marketing year that ended September 2017, buoyed by higher global prices, according to state-run Coffee Board.

The country's coffee shipments stood at 3,44,613 tonne in the 2015-16 marketing year.

"Two factors contributed for higher shipments in 2016-17. Firstly, there was enough domestic supply to meet the export demand as the domestic output was record in 2015-16. Also, global prices were better," a senior Board official told PTI.

As a result, coffee exports remained robust both in terms of volume and value in 2016-17, he said.
According to the Board data, the export value realisation rose 7.31 per cent to Rs 1,64,284 per tonne of coffee in 2016 -17 from Rs 1,53,089 tonnne in the year-ago period. Total coffee exports in value terms rose to Rs 6,191.43 crore from Rs 5,275 crore in the said period, it added.

The domestic supply was adequate as the output was record 3.48 lakh tonne in the 2015-16 crop year.

Normally, robusta variety comprises 70 per cent of the total coffee exports, while the rest is arabica coffee.

Major export destinations are Italy, Germany, Turkey, Russian Federation and Belgium, among others.

Coffee exports from India

Steel production rises 5.1%, consumption up 4.3% in April-September

“Production for sale of total finished steel at 52.079 mt, registered a growth of 5.1 per cent during April-September 2017 over the same period last year… consumption of finished steel in India saw a growth of 4.3 per cent in April-September 2017 (42.883 MT) over the same period last year, under the influence of rising production for sale and imports,” the Ministry’s Joint Plant Committee’s (JPC) report said.

SAIL, RINL, TSL, Essar, JSWL and JSPL together produced 30.44 mt during the first six months of the current fiscal, which was a growth of 9.8 per cent over same period of last year.

However, the report said overall production for sale of total finished steel at 8.814 MT in September was down by 0.2 per cent over August 2017 but was up by 5.6 per cent over corresponding month last year.

“During April-September 2017, crude steel production was 49.764 MT, a growth of 4.5 per cent over same period of last year,” the report said.

According to it, the consumption at 7.449 MT last month was up by 4 per cent over September 2016.

However, India’s total import of finished steel at 4.318 MT in April-September period was up 20.1 per cent over the same period last year. Imports in September was 0.81 MT, up 31.9 per cent over year-ago month.

The report also said India’s steel export grew by 60.1 per cent to 4.852 MT in the first six months of the current fiscal over the same period last year.

“Overall exports in September 2017, at 1.119 MT, was up by 20.8 per cent over August 2017 and was up by 70.6 per cent over September 2016,” it added.

Indian exports to China up by 40.69% in Jan-Aug period

BEIJING: India's exports to China, which have been showing signs of revival this year after years of slump, registered a 40.69 per cent rise year-on-year to reach $10.60 billion in the first seven months of 2017.

Fired by exports of zinc, iron ore and steel, total Indian exports to China registered a 38.6 per cent increase year-on-year in August this year totaling to $1.26 billion, the sharpest increase this year.

However, the trade deficit expanded to $44.51 billion in the first seven months despite surge in Indian exports as imports from China continue to increase.

The India-China bilateral trade increased 18.34 per cent year-on-year to reach $55.11 billion from January to August this year, according to official data accessed by here.

India's exports to China increased by 40.69 per cent year-on-year to reach $10.60 billion during the seven months.

India's imports from China saw a year-on-year growth of 14.02 per cent to reach $44.50 billion.
The cause for surge of Indian exports to China was a result of an exponential increase of 353.99 per cent of exports of zinc and related items, 248.19 per cent of iron and steel and 100.7 per cent increase in ores and slag and 151.17 per cent rise in copper.

India was the second largest exporter of diamonds to China totalling to $1.63 billion with a market share of 32.97 per cent after South Africa.
India was the second largest exporter of salt, sulphur, earths and stone, plastering materials, lime, and cement to China totalling to $692 million with 17.39 per cent market share after Turkey.

India's cotton exports, including yarn and woven fabric, to China showed a growth of 6.77 per cent to reach $844 million.
The country was the third largest exporter of cotton to China after Vietnam and the US accounting for 15.05 per cent share in the Chinese market.
India-China bilateral trade increased by 14.93 per cent year-on-year in August to reach $7.51 billion .
Despite the increase in Indian exports to China, Indian business and trade circles associated with bilateral trade however, advise caution as it is mostly led by iron ore and steel exports which started declining in 2013 due to a domestic crackdown on mines as well as China scaling down its steel production due to the global economic crisis.
The trade deficit began expanding ever since iron ore exports, the mainstay of Indian exports started declining.

Last year, the trade deficit climbed to $52 billion.

India has been pressing China to open up its pharmaceutical and IT software sectors to expand the base of Indian exports.

So far, there has been no major breakthrough in both areas, despite promises by China.

US Oil Export to India Will Increase Jobs: Rick Perry

Washington: Export of American crude oil to India will create jobs, economic stability and national security in both countries, US Energy Secretary Rick Perry has said, days after the first-ever shipment of US crude oil landed in Odisha.

The shipment, loaded at Saint James, Louisiana and Freeport, Texas terminals last month, docked at Paradip port in Odisha on October 2."This event represents the growing and important strategic energy partnership between the US and India, and I look forward to exploring new opportunities to expand the role of reliable, responsible, and efficient energy sources with our allies," Perry said yesterday.
He said the export of US crude oil to India will create jobs, economic stability and national security in both countries.

Following Prime Minister Narendra Modi's visit to the US, Indian companies ramped up purchases of American crude.To encourage US crude purchases, the government has allowed refiners to use a foreign rather than an Indian-owned vessel for the purchase. Indian refiners typically have to use domestic vessels for their crude imports.

In a blog post on Thursday, the US State Department said increased Indian purchases of US crude oil are a direct outcome of the June visit of Modi to the White House during which the leaders committed to expanding and elevating bilateral energy cooperation through a Strategic Energy Partnership.

"We expect this first shipment of crude oil will be followed by many more as both the Indian Oil Corporation and Bharat Petroleum have placed orders for over 2 million barrels from the United States," said Tom Vajda, Office Director for the India Desk in the South and Central Asia Bureau of the State Department.
US crude oil shipments to India have the potential to boost bilateral trade by up to USD 2 billion.

"Not only does this week's shipment demonstrate the strength of the US-India bilateral relationship, but also how our relationship with India continues to benefit the American economy," Vajda said.

Buying US crude has become attractive for Indian refiners after the differential between Brent (the benchmark crude or marker crude that serves as a reference price for buyers in the western world) and Dubai (which serves as a benchmark for countries in the east) has narrowed.

India, the world's third-largest oil importer, joins Asian countries like South Korea, Japan and China to buy US crude after production cuts by oil cartel OPEC drove up prices of Middle East heavy-sour crude, or grades with a high sulphur content.

US Crude Oil Export to India

India may import more US oil as demand rises

India is expected to forge a closer cooperation with the US in the energy sector and import more oil due to increase in demand, analysts said.

Earlier this week, India received its first ever shipment of US crude when a very large crude carrier docked at Paradip port in the eastern state of Odisha.

This is one of the first shipments to India since the US stopped oil exports in 1975 and follows recent commitments to US oil purchases by Indian state refiners.

Indian Oil Corporation and Bharat Petroleum have placed orders for over 2 million barrels from the US, according to a statement from the US Embassy in India posted on their website.

“We look forward to working together on further sales of US crude and exploring opportunities to expand the role of natural gas in India,” said Mary Kay Carlson, Charge d’Affaires at the US Embassy in New Delhi.

The development comes as India seeks to diversify its oil imports due to growing demand in the country.

Petroleum consumption in India is likely to grow by about 6 per cent in 2017-18, Moody’s investors Service said in a report last year.

“India due to its growing economy and increasing population has been seeking to diversify its oil imports and American oil offers an opportunity for India to reach its supplier diversification goals,” Justin Dargin, global energy expert a University of Oxford in London, told Gulf News by email. “In the mid to long-term, we can expect to see closer cooperation in the energy sector between the two countries. India will undoubtedly begin to import more oil from the US.”
Currently, India depends almost entirely on production from Opec to meet its energy needs. Just six countries — Saudi Arabia, Iraq, UAE, Kuwait, Nigeria and Venezuela make more than two thirds of its imports, analysts said.

Why India's import of US shale oil is a big deal

As the Very Large Crude Carrier (VLCC) docked at Paradip Port in Odisha on Monday to unload its 1.6 million barrels of shale oil, history was created. This was the first time since the US allowed exports of its oil after a ban of 40 years that it has supplied to India. But the move is significant in many other ways than just the symbolism attached to it.

India and other Asian countries were dependent to a large extent on oil production in west Asia by the Organisation of Petroleum Exporting Countries (OPEC). Because of the proximity to Asian economies, these OPEC countries charged a premium for the oil they supplied.

Taking into account that the cost of transportation from any other major oil producing countries would be prohibitive, OPEC countries got away with this. India has been raising the issue of the premium with OPEC countries over the last three years. Being the third-largest oil consumer, India demanded at a meeting of OPEC members and non-members that the premium be removed. The minister of petroleum and natural gas, Dharmendra Pradhan, said at the meeting that the global oil industry stood at a delicate crossroads and that any attempt to frustrate or assign lower importance to Indian demand would be detrimental to the suppliers.While the OPEC nations were still deliberating on the action to be taken, India moved ahead by ordering its first consignment of 2 million barrels of shale oil for around USD 100 million. This move again was not just symbolic in order to put pressure on the OPEC countries, but it made economic sense, too.As the cartel of OPEC nations was trying to keep oil prices higher by deliberately cutting production, US oil fields were firing on all cylinders. As a result of higher supply, the spread between Dubai Oil and those from Brent and WTI (West Texas Intermediate) fields fell in favour of the western oil fields. This made importing oil from the US cheaper than those from west Asia.

The government played an important role in bringing transportation costs down as it eased restrictions on importing oil compulsorily through ships owned by Indian companies. Using a VLCC to transport oil reduced the cost of transportation and made the decision economically viable.

The refiner, in this case, Indian Oil Corporation (IOC), benefited not only from the lower price of crude but also from a better quality of the oil. Shale oil, also known as tight oil, gives the best yield for the most lucrative middle distillates. In other words, the gross refining margins (GRM) of refineries will improve if the shale oil is used. Little wonder then that Reliance Industries too has booked 1 million barrels of WTI and Eagle Ford crude each.Finally, the geopolitical benefit that India gains by purchasing US crude also needs to be taken into account. The deal to buy US oil was struck in a meeting between Prime Minister Narendra Modi and US President Donald Trump. For India, importing crude oil also helps in bringing down the USD 24-billion trade deficit which Trump has been pointing to in his attack on India’s impact on US jobs.

In the context of around 1,500 million barrels of oil imported by India, the present import is too small to move the needle, but it is surely going to turn heads in the OPEC world as the cartel struggles to find new markets and environmental awareness puts pressure on oil demand.

Govt, industry to brainstorm on measures to boost exports

NEW DELHI, OCTOBER 3: 
The export sector’s woes finally seem to have nudged the Centre into action. On Friday, when the GST Council meets to iron out the sector’s problems, three key Union ministers will hold a brainstorming session with officials, exporters and industry bodies to identify measures to lift exports on to a higher growth trajectory.

Commerce and Industry Minister Suresh Prabhu, Textiles Minister Smriti Irani and Chemicals & Fertilisers Minister Ananth Kumar will hold talks with representatives from key ministries and departments, including Finance, Heavy Industry and MSME, as well as exporters’ and industry bodies, a government official told BusinessLine.

“The inputs from the session will also be used to frame the mid-term review of the Foreign Trade Policy (FTP), which is already delayed. The focus will be on how India can go for a quantum jump in exports,” the official said.

Exports have fallen woefully short of the FTP targets announced in April 2015, which projected annual exports of $900 billion by 2020. However, exports have hovered around $300 billion in the last two years.

Liquidity challenges after the GST regime kicked in and the rupee’s volatility have made the going tougher for exporters.

“The Commerce Ministry realises it is time for a course correction in order to move exports to a higher growth trajectory. Not only will steps need to be taken to address the immediate problems, effective schemes have to be devised to increase their competitiveness,” the official said.

New challenge
With the World Trade Organization declaring earlier this year that India’s per capita Gross National Product (GNP) had exceeded $1,000 for three years in a row (2013, 2012, 2015), the country will now be ineligible for export incentives that only poorer countries are allowed.

“The Ministry will have to look at new options together with affected ministries, such as Textiles, in order to ensure that action is not taken against Indian exports by other WTO member countries,” the official said.Exporter wishlist
Meanwhile, the GST Council is expected to consider some of the requests made by the export sector, which includes exemption from Integrated GST (IGST) on imports of inputs used in exports (under schemes such as Export Promotion Capital Goods and Advance Authorisation); exemption from GST for merchant exporters and wider usage of duty exemption scrips (earned under incentive schemes such as Merchandise Export from India Scheme).

“In the meeting with the Centre on increasing exports, we will highlight problems of the export sector, give possible solutions and suggest a strategy to increase exports,” said Ajay Sahai, Director General, Federation of Indian Export Organisations (FIEO).

1ST US CRUDE OIL SHIPMENT REACHES INDIA

Nearly three months after Prime Minister Narendra Modi and US President Donald Trump agreed to enhance energy cooperation through Strategic Energy Partnership, India on Monday received its first ever consignment of crude oil from America ever since it had stopped oil exports to New Delhi in 1975.

The first consignment of the US crude oil cargo of 1.6 million barrels bought by Indian Oil Corporation was received at the Paradip Port in West Bengal. A sample of the crude was symbolically presented to Sunjay Sudhir, Joint Secretary (International Cooperation) in the Ministry of Petroleum and Natural Gas. Katherine B Hadda, US Consul General in Hyderabad, senior officials from Ministry of External Affairs and Indian Oil were also present at the ceremony. The consignment was brought by MT New Prosperity, a Very Large Crude Carrier (VLCC). IOC will process the crude at its East-Coast base refineries, located at Paradip, Haldia (both West Bengal), Barauni (Bihar) and Bongaigaon (Assam). The second shipment is expected in a month's time.

Calling it as a new chapter in the history of Indo-US trade, particularly in the oil and gas sector, Sudhir said that the inclusion of the US as a source for crude oil imports by India's largest refiner will go a long way in mitigating the risks arising out of geo-political disruptions. He added that the new arrangement would also usher in price stability and energy security for India, which is witnessing robust growth in demand for petroleum products.

"This is one of the first shipments to India since the US stopped oil exports in 1975, and follows recent commitments to US oil purchases by IOC and Bharat Petroleum (BPCL)… These crude oil shipments to India have the potential to boost bilateral trade by up to $2 billion," the US embassy in New Delhi said in a statement.

IOC, which became the first Indian public sector refiner from India to source US crude, has placed a cumulative order 3.9 million barrel from the US. Bharat Petroleum and Hindustan Petroleum, India's two other public sector refiners have also placed orders for about 2.95 million barrels and 1 million barrels, respectively, for their Kochi and Vishakhapatnam refineries. The total volume of the crude presently contracted by Indian public sector refineries with US is 7.85 million barrels.

Indian companies, both public and private, have made sizeable investments in US Shale assets with a total investment of approximate $ 5 billion. Indian companies have also contracted MMTPA of LNG from the US and the first shipment is expected to be delivered to India in January 2018.

"This event marks a significant milestone in the growing partnership between the US and India.  The US and India are elevating our cooperation in the field of energy, including plans for cleaner fossil fuels, renewables, nuclear, and cutting edge storage and energy efficiency technologies.  We look forward to working together on further sales of U.S. crude and exploring opportunities to expand the role of natural gas in India," said Mary Kay Carlson, Chargé d'Affaires at the US Embassy in New Delhi.

During their June 26 meeting in Washington, Modi and Trump committed to expanding and elevating bilateral energy cooperation through a Strategic Energy Partnership. The leaders called for a rational approach that balances environment and climate policy, global economic development, and energy security needs. Trump affirmed that the US continues to remove barriers to energy development and investment in the US and to US energy exports so that more natural gas, clean coal, and renewable resources and technologies are available to fuel India's economic growth and inclusive development, the US Embassy said.

India exporters struggle with Modi’s new tax system

NEW DELHI: Narendra Modi’s push to boost Indian exports is being undermined by the problems plaguing his government’s new tax system, companies have warned, with tens of thousands of exporters struggling to meet their short-term funding needs. The Indian prime minister unveiled a new goods and services tax in July, which ministers hope will significantly boost economic output by turning the country into a single market for the first time. But it has been beset by technical problems and design flaws, threatening business confidence and contributing to a sudden drop in gross domestic product. In September, it emerged that businesses lodged claims for tax credits worth nearly $10bn for the first month of the GST — far greater than ministers had been expecting.
As they look to increase tax revenues, officials have delayed paying credits to exporters, who have to pay their tax and then claim the cash back under the new system. Under the old regime, exporters did not have to pay tax at all on the supplies they bought. “Small and medium exporters are finding it especially tough, as they are not able to take out bank loans to fund their working capital while they wait for tax credits to be paid,” Ajay Sahai, director-general of the Federation of Indian Export Organisations (FIEO), said. Mr Sahai estimates there are about 100,000 small and medium-sized exporters, up to 40 per cent of which are now facing difficulties. The problems threaten Mr Modi’s aim of boosting exports, which he has made a part of his economic policy under the “Make in India” slogan. Until recently that policy had been relatively successful, with exports rising 4.7 per cent in 2016-17 to $274.7bn — the steepest in five years. But that progress has stalled. In September the Reserve Bank of India announced India’s current account deficit had jumped to a four-year high of $14.3bn, as imports rose at double the pace of exports. Meanwhile economic growth has also slowed, falling from 7 per cent at the end of 2016 to just 5.7 per cent for the quarter ending on June 30. The dip has triggered a rare bout of infighting within the ruling Bharatiya Janata party, with Yashwant Sinha, the former finance minister, accusing the government of making a “mess” of the economy.