ADDENDUM : How to deal with anxiety ? [-]
"Worrying is carrying tomorrow's load with today's strength- carrying two days at once. It is moving into tomorrow ahead of time. Worrying doesn't empty tomorrow of its sorrow, it empties today of its strength." - Corrie ten Boom

"Man is not worried by real problems so much as by his imagined anxieties about real problems" - Epictetus

"Okay, so, flying," I started, taking a deep breath and focusing on the thing I loved most in the world. "Flying is … great. It feels great when you're doing it. It's fun. Pure freedom. There's nothing better." Dylan smiled, a slow, easy smile that seemed to light up his whole face. "So the first thing we're going to do," I told him, "is push you off the roof." - James Patterson, Fang

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http://www.thesynergyonline.com/exportnews.htm

Togtherness

BHEL wins the EEPC Export Excellence
Award for the 26th consecutive year

The award was received by Mr Atul Sobti, CMD, BHEL
from Mr Suresh Prabhu, Union Minister of Railways

 

Thesynergyonline Exports Bureau

?

Mr Atul Sobti, CMD, BHEL receiving EEPC Export Excellence Award for from Mr Suresh Prabhu, Union Minister of Railways. Instituted by EEPC
NEW DELHI, DECEMBER 14 : BHARAT Heavy Electricals Ltd (BHEL) has won the EEPC INDIA National Award for Export Excellence for the year 2014-15 as 'Star Performer - Project Exports (Large Enterprise)'.

The award was received by Mr Atul Sobti, CMD, BHEL from Mr Suresh Prabhu, Union Minister of Railways. Instituted by EEPC, the award is given annually to top exporters for excellence in physical exports.

Significantly, BHEL has been winning this prestigious award consecutively for last 26 years. With footprints in over 80 countries across six continents, BHEL has been India's leading exporter for more than 45 years.

 

"What I wouldn't give for a little old smuggling job."
― Katherine McIntyre, An Airship Named Desire

 

Informal trade or smuggling rampant in India-Pak trade: ASSOCHAM Paper

Thesynergyonline Economics Bureau

 

ASSOCHAM Paper

Smuggling

 

NEW DELHI, OCTOBER 02 :
Informal trade or putting it bluntly, smuggling of goods, between India and Pakistan is estimated at over US$ 5 billion, almost double the official two-way commerce between the two neighbours with history of chequered ties, an ASSOCHAM study has pointed out.

Based on well-researched documents and reports by over 50 top think tanks and research organisations, including ICRIER, annual reports of the Indian Ministry of Home Affairs, Lahore Journal of Economics, Institute of South Asian Studies-National University of Singapore among others, the ASSOCHAM Paper on India – Pakistan Trade, bought out some interesting facts which include the non-formal trade or unaccounted transactions, which can bluntly be called smuggling.

It said while the actual volume of informal trade is difficult to calculate, there are different informal channels of information which has been collated over a period of time by different research bodies and think tanks. The ASSOCHAM Paper has largely drawn upon a wide bank of these research documents.

"Informal traders in both the countries have developed efficient mechanisms for information flow, risk sharing and risk mitigation. The three important contributory factors towards thriving informal trade are quick realization of payments, zero documentation and little procedural hassles leading to lower transaction costs. "

"Smugglers/traders mainly carry out the informal trade between Pakistan and India through the exchange of goods at the Indo-Pakistan borders as well as through the misuse of the personal baggage scheme through the 'Green Channel' facilities at international airports or railway stations. Informal trade is also taking place through Afghanistan whereby goods are exported officially from India to Afghanistan and later on brought into Pakistan through Peshawar".  

 

There are more exports from India than imports through the smuggling route. Besides the Afghanistan route, other channels of such informal trade include India-Dubai-Pakistan, Wagah by rail or road and Srinagar-Muzaffarabad. The composition of items going from India include jewellery, textiles, machinery and electronic appliances. On the import front, the items include textiles, dry fruits, spices and carpets.

Significantly the informal trade or smuggling is over and above the 'Third country' trade which is generally done through Dubai and is not illegal. The 'Third country' trade is also done through agents in Singapore. Through this route, exports from India include capital goods, textile machinery, dyes and chemicals, iron and ore, spices, tannery equipment, machine tools, cotton fabrics, tyres and chemicals and medicine. It is mostly exports.

"Trade between Pakistan and India via Dubai has the advantage (for the traders) that consignments are not scrutinized as much as those coming directly from either country".

So, the India-Pakistan official trade of US$ 2.67 billion is far less than other channels.

 


"A platform is what defines your visibility with your audience."
― Geraldine Solon, Authorpreneur in Pajamas

Online platform soon for SEZs
to raise issues and concerns:
Commerce Ministry official


Thesynergyonline Exports Bureau

An awesome picture

Those who can imagine anything, can create the impossible.

I know there's a proverb which that says 'To err is human,' but a human error is nothing to what a computer can do if it tries." -Agatha Christie, Hallowe'en Party

 

NEWDELHI,AUGUST 04 :
"I am convinced that grandkids are inherently evil people who tell their grandparents to "just go to the library and open up an e-mail account - it's free and so simple."
― Scott Douglas, Quiet, Please: Dispatches From A Public Librarian

And so the Union Government will soon roll out a web-based platform for special economic zones (SEZs) to raise their concerns and action taken may be provided by the concerned authority, a top Union Commerce Ministry official said at an ASSOCHAM event held in New Delhi on Thursday.

"This will provide a platform for constant dialogue and transparency in resolution of issues. I intend to roll it out as soon as possible," said Mr Alok V. Chaturvedi, additional secretary, Department of Commerce while inaugurating 10th SEZ Convention organized by ASSOCHAM.

"The software is already in place, we need to adopt it for our requirement, efforts have already been made in this direction," said Mr Chaturvedi.

He added that the online platform would be on the lines of a Project Monitoring Group system in the Cabinet Secretariat.

Highlighting the issue of lifting of Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) concerning the SEZ sector, Mr Chaturvedi said, "MAT appears to be unfair for SEZ units and it is not in tune with the Government philosophy of stable tax regime, we have taken up the issue with Finance Ministry."

"According to Finance Ministry, MAT has been imposed to partly recoup the loss of revenue due to profit-linked exemptions. They are bringing down average rate of corporate tax. However, we have taken it up again in view of adverse export conditions and the stellar role played by SEZ in the export growth and the employment generation," he said.

"Alternative suggestions regarding reduction of MAT from 20.5 per cent to 7.5 per cent or extension of period of ten years till the entire MAT credit is adjusted against the tax liability of SEZ will also be taken up with Finance Department," he added.

Talking about the issue of permitting SEZ units, to perform job work for units in Domestic Tariff Area, which at present is not permissible, Mr Chaturvedi said, "In order to facilitate integration of SEZs with domestic economy, the procedure for job work and domestic clearances from SEZs need to be streamlined by amending SEZ Rules. There is an issue there as SEZs are primarily for exports and they have taken the benefit of concessions."

He however, said that it is nobody's case, that there should be an idle capacity within or outside SEZs. "We need to resolve these issues. This is all the more important since it is becoming increasing difficult to have land for setting up industries elsewhere. The issue is being examined in consultation with Finance Ministry."

On the issue of permitting exports from SEZs to the domestic tariff area, at the most favourable tariff rates as given to India's Free Trade Agreement (FTA) partners, he said, "This would give a boost to the 'Make in India,' campaign and our import requirement can be met through manufacturing in SEZs rather than through import of the same goods from FTA partners such as Japan, South Korea, ASEAN, etc. We have taken up this issue also with the Finance Ministry."

He also said that there is a need to have a relook at the Free Trade Warehousing Zone Policy.

"Proposals regarding permission for keeping goods on behalf of foreign buyer, DTA buyer and DTA supplier in addition to foreign supplier, allowing drawback on export of goods from DTA supplier to FTWZ unit, on account of the foreign buyer, and Net Foreign Exchange calculation criteria, all these proposals have been sent to the Department of Revenue and are under active consideration of the Government," said Mr Chaturvedi.

On the issue of phasing out of exemptions, he said that CBDT has proposed to provide a sunset date of March 31, 2017 for tax exemption in respect of SEZ projects having non-operational by then. "This matter has also been taken up with CBDT and we are following up with them."

Talking about the contribution of SEZs in growth of India's economy, he said that over 200 SEZs are operational while over 400 SEZs have been formally approved. Total investment in SEZs is over $50 billion and they are providing direct employment to over 1.5 million persons. Exports from SEZs have increased from about $3.5 billion in 2005-06 to over $65 billion in 2014-15 that is about 20 times in the last ten years and nearly 16% of country's exports are from SEZs.

He also sought industry's views and suggestions on how to further improve the business environment for the units in SEZ.

OPINIONATIVELY : "….wehave created a man…" [-]
"... we have created a man with not one brain but two. ... This new brain is intended to control the biological brain. ... The patient's biological brain is the peripheral terminal -- the only peripheral terminal -- for the new computer. ... And therefore the patient's biological brain, indeed his whole body, has become a terminal for the new computer. We have created a man who is one single, large, complex computer terminal. The patient is a read-out device for the new computer, and is helpless to control the readout as a TV screen is helpless to control the information presented on it." - Michael Crichton, The Terminal Man"


Early operationalising of BIMSTEC FTA imperative for greater push to trade: Study


Thesynergyonline Exports Bureau

Highlights

 

NEW DELHI, JJULY 21 : India should work closely with the seven-nation Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) grouping to conclude trade negotiations and attempt early operationalising of the Bay of Bengal Free Trade Agreement (FTA) to give a big push to trade in the region, an ASSOCHAM study said.

"BIMSTEC FTA may help activate production links among member countries and help in rationalising various non-tariff measures (NTMs) which would give big push to regional trade and generate regional value chains," highlighted the ASSOCHAM study titled 'BIMSTEC Economic Integration: Opportunities and Challenges.'

The study was jointly released by Ms Preeti Saran, secretary (East), Union Ministry of External Affairs and Bangladesh state minister for foreign affairs, Mr Shahriar Alam at '7th ASSOCHAM-BIMSTEC Business Forum,' along with ASSOCHAM president, Mr Sunil Kanoria; chamber's secretary general, Mr D.S. Rawat and Mr Sumith Nakandala, secretary general, BIMSTEC.

"To achieve 'trade and connectivity,' the FTA, which has been under negotiations since the inception of BIMSTEC needs to be accomplished and all other areas of cooperation will follow once the member countries are connected and trade and commerce flourishes," noted the study.

"What BIMSTEC needs is firm handholding and visionary leadership that can harness these resources for its own good," it added.

There is also the need to focus on trade facilitation through transport efficiency in maritime and land transport, regulatory environment and service sector infrastructures like electronic documentation, harmonising regulations and others.

The study further said that there is a need to liberalise trade and investment measures in services considering the lack of adequate physical infrastructure in the region, more so as services exports are performing well compared to manufactured exports that are more dependent on infrastructure.

It also suggested that the BIMSTEC countries should work on Single Window facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements.

Elimination of non-tariff barrier within a mutually agreed timeframe, reduction in negative list to unlock trade potential, introduction of transit facilities to promote effective intra-BIMSTEC trade, improvement in regional connectivity and introduction of a BIMSTEC visa to facilitate movement of people particularly for investors and businessmen are certain other key recommendations of the ASSOCHAM study.

In her address at the ASSOCHAM summit, Ms Saran said, "Members of BIMSTEC have been struggling to negotiate a successful free trade agreement which has over the years been overtaken by other instruments which has been somehow disincentive for a greater push on this FTA."

"Even as we strive together to open our borders to free trade in goods. I think the potential for the future lies in investments in the services sector," said Ms Saran.

"There is a memorandum of understanding (MoU) on establishment of a BIMSTEC technology transfer facility also under negotiation which has the potential to assist small and medium enterprises (SMEs) in sharing their experiences in capacity building, technology evaluation, market assessment and intellectual property management," she said.

Highlighting that the Bay of Bengal is home to over 30 per cent of world's fishermen, Ms Saran said that sustainable development and modernisation of fishing industry in the region can contribute substantially in improving standards of living of our people.

"I would urge to look at potential of development of marine resources in agriculture, particularly in the fisheries sector."

Talking about role of financial co-operation for boosting intra-regional trade and investment she said, "Financial co-operation may eventually cover currency swap agreements, pooling of reserves by the Central Banks, exchange rate co-ordination mechanisms, regional supervisory institutions, regional payment agreements and establishment of regional development banks and regional bond markets to boost access to long-term financing."

Terming terrorism as a major challenge to region's economic growth and development, Ms Saran said, "What we together as BIMSTEC need is a concerted action to deal with terrorism including dismantling of structures of terrorism, trainers of terrorism and isolate those who sponsor, finance and train these terrorists."

Pushing for early realisation of BIMSTEC FTA to promote trade and investment, Bangladesh state minister, Mr Alam said, "We would also like to see negotiation on investment in services be fast-tracked to run parallel to the negotiations on trade in goods."
He said that in order to sustain the economic growth we need to secure a stable and affordable energy supply through exploration of regional energy resource potential.

"We expect to sign the MoU on BIMSTEC Energy and Grid Interconnection which will help to foster co-operation in energy sector," said the minister.

Soy the least expensive source of protein with great potential to combat malnutrition

Thesynergyonline Economics Bureau

GOA, JULY 20 :
GIVEN an alarming increase in the lifestyle related diseases and subsequent increase in the health consciousness among the Indian population the soya fortified wheat flour attracts a huge scope among the general Indian consumers, offering an excellent retail portfolio and commercial opportunities.

Indian government runs the world's largest feeding and supplementary nutrition program under various social welfare and 'National Food and Nutrition Security' mission which include 'Integrated Child Development Services (ICDS)' and 'Mid Day Meal' programs. Soy fortification is one of the most effective and least expensive ways to combat malnutrition. Soya fortified wheat flour adequately fulfils the protein and calorific requirements of human body and also meets the mandatory criteria prescribed in government feeding and supplementary nutrition programs run by the Government of India.

 

FSSAI regulations for nutraceuticals
reach final notification stage: Official

Thesynergyonline Exports Bureau

NEW DELHI, JULY 05 : "It is in doing things and not reading about them that results come about."
― Stephen Richards

So the Government is focussed upon harnessing the strength of India's ancient medicinal practices based on traditional health systems to get more and more export value, union minister of state for Science and Technology. Mr Y.S. Chowdary said at an ASSOCHAM event held in New Delhi on Tuesday.

"The Prime Minister, Narendra Modi has been talking in a very focussed manner to harness our ancient values more and more to get more export value, this is not a new subject for India but requires us to stay focussed therefore we should start getting this to the ground level," said Mr Chowdary while inaugurating 'ASSOCHAM National Symposium on Nutraceuticals, Herbals and Functional foods.'

"Nutraceuticals has been part of India's ancient values and strength but unfortunately this particular industry has not been getting enough support," said Mr Chowdary.

"In our country, all these herbal and natural products need to become the first in line not for curative but for prevention purposes," added the minister.

In his address at the ASSOCHAM conference, Mr Kumar Anil, advisor (standards), Food Safety and Standards Authority of India (FSSAI) said that regulations for nutraceuticals industry have reached the final notification stage.

"We had realised the need for establishing standards earlier on and initiated the process four years ago, today I am happy to inform that these regulations have reached the final notification stage," said Mr Kumar.

"The regulations which have been framed under Section 22 of the Food Safety and Standards Act has been titled – Food Safety and Standards for food for health supplements, nutraceuticals, food for special dietary use, food for special medical purposes, functional food and normal food regulations 2016," he said while addressing the event on behalf of Mr Pawan Kumar Agarwal, chief executive officer (CEO), FSSAI.

Mr Kumar said that these regulations have been framed to provide a level playing field to all stakeholders in the nutraceuticals industry.

"These regulations are very comprehensive and provide for manufacture and sale of food for special health supplements, nutraceuticals, special dietary use, special medical purposes, functional food and normal food," he added.

It provides general conditions for manufacture and sale of these foods besides providing chapter-wise details regarding essential composition, requirements related to claims, labelling, permitted use of additives and limits of contaminants, toxins and residues.

"The regulations also provide for various schedules dealing with vitamins, minerals, recommended diet, daily allowance, list of ingredients of plants, botanical storages, probiotics, prebiotics, besides it also has a comprehensive schedule of additives which is further divided into various sub-categories," said Mr Kumar.

He informed that for any new ingredients, plants or botanicals to be added to the list, these schedules offer any deletion if need be. "FSSAI intends to review these regulations on a regular basis as this exercise will help it in further evolving these regulations as per the stakeholders' requirement."

"These regulations offer for tremendous scope for evaluation and application for industry's benefit," further said Mr Kumar.

India's pharma exports may
reach $20 bln by 2020: Study


Delay in regulatory approvals may reduce pharma exports' growth by half

Thesynergyonline Exports Bureau

NEW DELHI, JUNE 16 : How often do you find yourself saying, "In a minute", "I'll get to it" or "Tomorrow's good enough" and every other possible excuse in the book? Compare it with how often you decide it's got to be done, so let's get on and do it! That should tell you just how serious your procrastinating problem really is."
― Stephen Richards, The Secret of Getting Started: Strategies to Triumph over Procrastination

Export of pharmaceutical products from India is likely to cross $14. billion (bn) mark this year and may reach about $20 bn by 2020 , registering a compounded annual growth rate (CAGR) of about eight per cent, according to an ASSOCHAM-TechSci Research joint study.

"However, growth in pharmaceutical products' exports from India may decline by almost half i.e. from the level of CAGR of about 15 per cent clocked during 2010-14 to about eight per cent during 2015-2020 on account of delay in regulatory approvals in top markets of the US, Russia, Africa and others," highlighted the study titled 'IPR in pharmaceuticals: Balancing, innovation and access,' jointly conducted by ASSOCHAM and TechSci Research.

"Consolidation of pharmacy players is leading to an increase in pricing pressures for generic companies existing in the US market which is expected to result in decline in year-on-year growth of pharmaceutical exports from India over next five years," highlighted the ASSOCHAM-TechSci Research study.

Besides, a steep decline in currency in emerging markets like Africa, Russia, Ukraine and Venezuela is expected to add woes to drug manufacturing companies that supply pharmaceutical drugs to that region and are unable to generate high revenues on account of selling their drugs at a low priced currency.

India is the largest supplier of medicine to the US. Pharmaceutical exports from India to the US rose from $3.4 bn in 2013 to $3.7 bn in 2014, mainly due to increasing demand for high quality generic drugs in the market.

However, growth rate for exports of pharmaceutical products from India to the US is declining, due to increasing US Food and Drug Administration (USFDA) scrutiny on the quality of pharma products coming from drug manufacturing plants located in India.

In order to boost growth rate of exports to the US, Indian companies will need to leverage their compliance to the USFDA regulations.

The exchange rate crisis in the country is affecting pharmaceuticals market in Russia. As such, stabilization of currency is of utmost importance in generating revenues through exports.

In addition, many Indian companies are operating through the Pharmaceutical Benefits Program (PBP) and hospital tenders, for supplying vital and essential drugs, for which prices are then regulated by the Russian government.

Similarly, India's exports of pharmaceuticals to Africa are being affected due to port delays and prolonged custom valuation.

"Pharmaceuticals' exports are a major factor contributing to growth of this industry in India with the US and few fast growing markets like Brazil, Mexico, Russia, South Africa and in South-East Asia emerging as the main export markets for generic drugs," said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the study.

"India's pharmaceutical industry has transformed from being mainly a generic manufacturer to providing complex drug formulations to foreign markets thereby registering a significant growth," said Mr Rawat.

"Pharmaceutical market in India is being driven by rapid socio-economic changes, rising sedentary lifestyle amid people and expected growth in number of people suffering from obesity, diabetes, cardiac problems and other related ailments," he added.

 

 

"People who pressure you usually deserve a "no". People who are patient with you usually deserve a "yes"." - Alan Cohen

G&J exports likely to remain under
pressure this fiscal

Thesynergyonline Exports Bureau

Gold jewellery  

NEW DELHI, JUNE 08 : Apex industry body ASSOCHAM on Wednesday urged the government to extend incentives like interest subvention, Merchandise Exports from India Scheme (MEIS) and others to promote gems and jewellery (G&J) exports that have been marred by global slowdown thereby putting at risk livelihood of over 30 lakh people employed by the sector across India.

"G&J exports from India are likely to remain under pressure this year as well, even though there are indications of improvement in business sentiment in United States of America (USA) which takes nearly half of country's diamond jewellery production," noted an ASSOCHAM paper titled '2015-16: A year of dismal export performance for India.'

"Though market share of the USA and Hong Kong in diamond and precious stones' exports has expanded to 29 per cent and 36 per cent respectively over the last few years, market share of the UAE has fallen steadily from one-fifth a few years ago to less than one-tenth of the total exports," noted the paper prepared by the ASSOCHAM Economic Research Bureau (AERB).

While import of rough diamonds and semi-precious stones have fallen by over 11 per cent in FY2015-16, the net diamond exports and semi-precious stones have declined by about 43 per cent year-on-year i.e. from $4.2 billion (bn) in 2014-15 to just $2.4 bn in 2015-16.

Besides, exports of jewellery have also fallen by about 17 per cent i.e. from $13.2 bn in 2014-15 to $11 billion in 2015-16. Dubai and Thailand are fast emerging as major jewellery manufacturing hub as a lot of Indian businesses are setting up units there.

The Gold Monetisation Scheme might help reduce reliance on import of gold to meet domestic demand and may have some positive impact during the course of the year, the paper observed.

ASSOCHAM has reiterated its appeal to the government for granting 'industry status,' to the gems and jewellery sector to give a fillip to investments and bring down costs of operation as that would also help build trust and faith in Indian brands in global markets and in achieving goals of Make in India.

Modernisation of labour laws, requirement of more export-oriented economic zones, establishment of a gold board, ensuring access to better financing, relaxation of certain taxation laws, segregation of investment and consumption demand, setting up a gold tourism circuit are certain key areas focus on which can help in reviving the G&J sector in the country.

Impact of falling global prices and export volumes has not only affected the G&J sector but petroleum products' exports have also plummeted by over 46 per cent i.e. from about $67 bn to $30.4 bn during the aforementioned period. "This seems to be much larger problem as Indian firms are losing their share in global markets."

The ASSOCHAM paper has also suggested for replacing power looms that account for about 65 per cent of fabric production in India by modern shuttle-less weaving equipment, besides it is also required to diversify its export markets away from a few countries in the European Union and the USA to nearby countries in the Asian continent.

Further, ASSOCHAM has recommended to urgently put in place the long-pending goods and services tax (GST) to reduce the burden of un-refunded state level taxes to make India's exports competitive.

It has also suggested the government to set up a high-level committee to look into costs of inter-state barriers to trade and suggest a time-bound roadmap to address the same as that would not only provide much-needed relief to the export sector but weld India into a single market much bigger than EU in terms of population.

OPINION [-]
What are you going to do if there's too much to do? Whose fault is it that you have so much to do? Probably one of the hardest words to learn to say is no, but this is imperative if we're to prevent an overload. Demands made on any individual will soon mount and far exceed what the individual can handle. It becomes necessary to decide whether we are compact station wagons or ten-ton trucks. If we decide that we are lightweight station wagons, then we better put a load limit; and if we would keep from pressure, we must refrain from assuming a responsibility that we cannot fill. - J. Dwight Pentecost, Man's Problems God's Answers

It doesn't matter how many times you win an award, it is always very special.- Zinedine Zidane

MRPL wins 'Niryat Shree' Gold Trophy in the
Residual sector for Non MSME category

Thesynergyonline Export Bureau

 

Mr H Kumar, Managing Director, Mangalore Refinery and Petrochemicals Limited receiving 'Niryat Shree' Gold Trophy from  the President of India recently at a function held at Vigyan Bhawan, New Delhi.

NEW DELHI, MAY 07 : "A trophy's value isn't measured by the worth of its metal but by the amount of work that's required to obtain it" - Johannes Schiefer

And so Mr H Kumar, Managing Director, Mangalore Refinery and Petrochemicals Limited:
(MRPL) , received 'Niryat Shree' Gold Trophy in the Residual sector for Non MSME category by Federation of Import Export Organizations (FIEO) from the
President of India on May 04, 2016 at a function held at Vigyan Bhawan, New Delhi.



The President of India Mr Pranab Mukherjee presented the 15th Set of FIEO Niryat Shree" and Niryat Bandhu" Awards to companies from various sectors of exports besides service providers, banks, various facilitating agencies promoting exports during the Golden Jubilee Celebration of Federation of Indian Export Organisations (FIEO).

Mrs Nirmala Sitharaman, Minister of State for Commerce and Industry (Independent Charge) was also present on the occasion.

Finally, "Maintain the name you build. It is easier to make a good brand than to maintain a good brand already made. Wining a trophy is not as difficult as defending it."

ADDENDUM : Honour [-]
Honour bought of coin is but grass in the wind. When the wind blows south it leans south; when the wind blows north so does it lean. Hardly solid rock upon which to forge sturdy trust nor imperishable friendship"- JJ Matebesi

Everything which is of use to mankind is honourable. ? Fyodor Dostoyevsky, Crime and Punishment

 

  • "If everyone had something to contribute, there would be enough." - Tina Fey, Bossypants

Gujarat, Maharashtra contribute 46% to India's exports; share of top 5 is 69%: Study

Thesynergyonline Exports Bureau

 

The buyer needs a hundred eyes; the seller but one.
 

NEW DELHI, MARCH 29 : "Your ability to show discretion defines your likeliness to contribute to a wholesome performance." - Even Engesland

And so reflecting how skewed is India's export base, two states – Gujarat and Maharashtra, account for more than 46 per cent of the merchandise consignments from the country and with the addition of three next best performing sources of shipments, the top five states claim over 69 per cent of India's entire export earnings, according to the latest study by apex industry body ASSOCHAM.

Analysing the data between 2007-08 and 2014-15, the ASSOCHAM study on 'Export Performance of States' found that besides Gujarat and Maharashtra, the other top performing states on the export map include Tamil Nadu, Karnataka and Andhra Pradesh.

While Gujarat and Maharashtra have been vying for the top spot, the latter became the best performing states shipping goods worth USD 72.83 billion in 2014-15. Gujarat had export shipments of USD 59.58 billion in the same period while Tamil Nadu emerged as the third largest sourcing state with USD 27.47 billion of the consignments, noted the study prepared by ASSOCHAM Economic Research Bureau.

Though Gujarat and Maharashtra have traditionally been dominating the export business because of their locational advantage in terms of coastline, their growth rate has not been as good as those of Uttar Pradesh and Haryana which are doing a lot of catching up despite being land-locked. Surely, on a low base as compared to the best performing states, but UP registered a growth of 18.3 per cent at a compound level in 2014-15 while it was 14.4 per cent for Haryana. For Gujarat the CAGR was eight per cent while for Maharashtra, the compounded growth was 7.2 per cent, of course on a high absolute base.

  • "Land-locked states including Punjab, Rajasthan and Madhya Pradesh have to focus on massive improvement in basic infrastructure like roads, rail and airports to cut the transaction cost to stay competitive in an otherwise choppy international market," highlighted the ASSOCHAM study.

It noted that the Special Export-processing Zones (SEZs) have played an important role in promoting exports from the better off states. "For instance, Gujarat has been highly successful in tapping the potential of SEZs within its jurisdiction. Another noteworthy aspect is that almost three-fourths of operational SEZs are located in six states – Maharashtra, Gujarat, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu."

Cost and efficiency of the transport system is of paramount importance for the competitiveness and success of export-oriented businesses. States with coastline, seamless connectivity and port capacity with deep draft (Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh) also happen to be the leading exporters.

On the other hand, many states in the hinterland and in the North East find it difficult to enter export market because of poor logistics compounded by a weak trade facilitation.

"Current indirect tax structure unmakes India, by fragmenting Indian markets along state lines. This has the collateral consequence of also undermining 'Make in India,' by favouring imports and disfavouring domestic production and exports. The GST would rectify it not by increasing protection but by eliminating the negative protection for imports," the ASSOCHAM study concluded.

India's bulk drug exports to grow
between 12-14% till 2018-19: Study

  • Domestic formulations market might cross $20 bn in next two years

Thesynergyonline Exports Bureau

NEWE DELHI, MARCH 22 : India's bulk drug exports are likely to grow at a compounded annual growth rate (CAGR) of 12-14 per cent till 2018-19, driven largely by exports to regulated markets as well as continued growth in the semi-regulated markets, according to an ASSOCHAM and Yes Bank joint study.

"Share of regulated markets in Indian bulk drug exports might to rise to about 51 per cent by 2018-19, driven by Indian manufacturers' better process chemistry skills, low manufacturing costs, higher number of drug master filings (DMFs), expected expansion of key generic markets and cost reduction initiatives by large global companies," noted the study titled 'Indian Pharmaceutical Industry: Changing Dynamics & The Road Ahead,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with Yes Bank.

Of late Indian bulk drug exports have shifted in favour of regulated markets evidently as there has been an increase in the share of these markets to about 49 per cent in 2013-14 from about 43 per cent in 2008-09, noted the study.

  • Exports of bulk drugs used for manufacturing off-patent drugs will continue to grow at a 12-14 per cent CAGR in the next 5 years till 2018-19 while demand for API from on-patent drugs is expected to grow at a slower pace, the study highlighted.Spreading terror in the name of religion are anti-religious: PM Modi
 

This is mainly on account of the expected slowdown in the branded medicines market in both Europe and America. This coupled with pricing pressures is expected to impact pricing realisations for Indian API exporters. However, strong growth in volumes is still expected in these markets as increasing competition from generics will lead to cost pressures on innovator companies, it added.

"Growing at a CAGR of 12-14 per cent between 2013-14 and 2018-19, domestic formulations market is likely to cross $20 billion (bn) mark by 2018-19 from a level of about $11 bn in 2013-14," further noted the ASSOCHAM-Yes Bank joint study.

"The growth story of domestic formulations market is expected to remain strong, led by a rise in life-related diseases, better healthcare diagnostic infrastructure adding to increasing disease detection rate, new product introductions, volume growth driven by increasing penetration and better access to healthcare."

Further, India's formulation exports are expected to grow at a CAGR of 14-16% between 2013-14 and 2018-19.

During the 2012-2017, drugs generating annual sales of about $130 bn are likely to lose patent protection and will be exposed to generic competition, highlighted the study.

"Therefore sales of generics are expected to grow at a CAGR of 7-9 per cent over next five years thereby outperforming the overall global pharmaceutical market, whose growth is expected to be limited to 3-5 per cent."

Indian players are currently well placed to widen their presence in the generics market, noted the ASSOCHAM-Yes Bank study. "This is reflected in rising number of Indian players seeking Abbreviated New Drug Application (ANDA) approvals and tentative approvals from the US FDA (Food and Drug Administration)."

Additionally, mid-sized and small-sized Indian formulation manufacturers, who traditionally resorted to contract manufacturing, are also looking to tap the generic opportunity in regulated markets, further noted the study.

 

"Sometimes, things need't not need to be bigger, they only need to become better"

With exports slipping back to 2010 level, ASSOCHAM seeks FTAs' review

Thesynergyonline Economics Bureau

NEW DELHI, MARCH 17 :
"The line between good and evil is permeable and almost anyone can be induced to cross it when pressured by situational forces."
― Philip G. Zimbardo

Seeking a thorough review of India's trade –opening agreements like FTAs and PTAs, ASSOCHAM has said the country's exports in 2016-17, would be reversing back to near about the level of 2010-11, making it imperative for the government to come out with a fresh strategy to stem continuous fall in exports.

"The most obvious question of every citizen who is responsible to his nation's transformation is, "What can I do in this situation?"
― Sunday Adelaja

With a 16-18 per cent contraction, exports will aggregate around USD 260 billion, a level quite close to USD 251 billion attained in 2010-11. "This is the lowest since the exports broke the USD 300 billion-mark for the first time in 2011-12 with USD 306 billion", the ASSOCHAM said, giving a feedback to the Rajya Sabha for Examination of Demand for Grants for the Ministry of Commerce and Industry for 2016-17.

Dropping for the 15th month in a row, cumulative value of exports for the period April-February 2015-16 was USD 238.42 billion as against USD 286.30 billion registering a negative growth of 16.73 per cent.

"How severe is the situation can be gauged from a possibility that it would take another few years, maybe not before 2017-18, before we retrieve the export levels achieved 2011-12. That would be a seven-year reversal," ASSOCHAM Secretary General Mr D S Rawat said, impressing on the government that while the external sector would remain challenging, new game plan including review of the Free Trade Agreements (FTAs) and Preferential trade Agreements (PTAs) should be devised.

India has signed many trade pacts, more for geo-political reasons rather than commercial reasons. One case is the South Asian Free Trade Agreement, which has not resulted in any significant export gains. India's trade deficit has widened with the ASEAN. Further, most of India's preferential trade agreements (PTAs) are shallow in terms of product coverage. For example, the India-Mercosur PTA doesn't include textiles and apparel items, which face prohibitive import duties of up to 35 per cent.

India's pharmaceutical exports have not benefited from tariff reductions under the India-Japan CEPA, mainly because it's too cumbersome to deal with Japan's drug regulator. Japan allows the duty free import of apparel from India only if all of the raw materials used are of either Indian or Japanese origin, with an exception of 7 percent content by weight that can be sourced from third countries. No surprise, the utilization of India's PTAs for export promotion remains very low.

India's trade pacts have exacerbated inverted duty structure – high import duties on raw materials and intermediates, and lower duties on finished goods – that discourage the production and export of value-added items. Thus, apparel can be imported into India duty free while its raw material –manmade fibres attract an import duty of 10 percent. That makes little sense. Similarly, finished products such as laptops or cell phones can be imported more cheaply than all their parts (imported) separately because of duty inversion

Despite all attempts at diversification, India's merchandise exports have a narrow base, with the top 20 categories accounting for four-fifth of the total exports. Even in top export categories like textiles, India is exporting low value commodities such as cotton yarn or apparel rather than technical textiles.

Govt will come up with construction , demolition waste management rules by next month: Prakash Javadekar

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 10 :
The Centre will come up with rules on construction and demolition waste management by next month as a solution to reduce air pollution caused by construction dust, union minister for environment, forest and climate change, Mr Prakash Javadekar said at an ASSOCHAM event held in New Delhi on Wednesday.

"For the first time in India, we will come with separate rules for construction and demolition, hazardous, plastic and solid waste management rules," said Mr Javadekar while inaugurating a global summit on 'Smart Cities-Smart India,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"We are bringing out all waste management rules in next 30-40 days one-by-one," he added.

Mr Javadekar also said that almost 20 per cent of pollution and dust in India's all major cities is caused to due to construction debris and dirt.

"Unless we change all organs of governance and all aspects of life, our cities, rural areas and even citizens will not become smart," said the minister.

On the issue of pollution, Mr Javadekar said that while entire nation had been debating about Delhi's odd and even scheme, Modi government took the decision to leapfrog to Euro-VI standards of emissions, vehicles and fuel norms by 2020.

"The government is investing Rs 60,000 crore to improve quality of fuel and it will be ready with fuel of Euro VI norms by 2019, it is the real game changer as it is a permanent remedy to reduce vehicular pollution," he said.

Mr Javadekar also said that the Centre along with Punjab and Haryana governments has managed to reduce 35 per cent of stubble burning in the first year which used to add to pollution in Delhi-NCR.

Talking about government's flagship Smart Cities' campaign, the union minister said, "It is a sustainable city campaign, it is about rebuilding the whole country with a fresh outlook, with people's participation, private and public investment, it will ensure that India grows to its real potential."

"We are sure that in 10 years we are going to make a real difference to our cities, rural areas and islands," he said.

Recalling his recent trip to Andaman and Nicobar Islands, Mr Javadekar batted for developing uninhabited islands from tourism perspective. "There is such a huge development potential for tourism, forestry, fisheries and others, as such our government has now decided for island development."

"Had we developed even few of such islands there would not have been Phuket, Langkawi and other such globally famous tourist spots," he added.

"If you want to know what God thinks of money, just look at the people he gave it to." - Dorothy Parker

'Rupee slide good for India; RBI should
let it depreciate for helping exports'

Thesynergyonline Economics Bureau

Money isn't everything...but it ranks right up there with oxygen. - Rita Davenport.
Money has only a different value in the eyes of each." William Makepeace Thackeray, Vanity Fair
There is only one amount of money - just not enough."
'
"If you want to know what God thinks of money, just look at the people he gave it to."
Not, how much of my money will I give to God, but, how much of God's money will I keep for myself?"
 
NEW DELHI, JANUARY 17 :
"Give me lust, baby.
Flash.
Give me malice.
Flash.
Give me detached existentialist ennui.
Flash.
Give me rampant intellectualism as a coping mechanism.
Flash.
Rupee slide
Flash"

Any depreciation in rupee on account of China-led turmoil in the global financial markets should only be welcome sign for India, or else Indian exports will suffer more at the hands of China and other emerging countries witnessing correction in their currencies, an ASSOCHAM Paper has pointed out.

"This planet has - or rather had - a problem, which was this: most of the people living on it were unhappy for pretty much of the time. Many solutions were suggested for this problem, but most of these were largely concerned with the movement of small green pieces of paper, which was odd because on the whole it wasn't the small green pieces of paper that were unhappy."
― Douglas Adams, The Hitchhiker's Guide to the Galaxy

"India should allow its currency to slide while the RBI should use ample foreign exchange reserves to defend the currency only if there is a rout situation. However, there is a distinct possibility that rupee could actually strengthen over the medium term", the Assocham paper said.

It said India must also ensure that Indian exports need to get back their competitiveness even in the midst of global slowdown. The major challenge is coming from China in various forms with sizeable influence on the currency valuation.

Yuan devaluation, third in the last five months, will negatively impact Indian firms which have export exposure to China in sectors such as tyres, pharmaceuticals, steel and organic chemicals textiles due to a volatile change in terms of trade, the paper said.

"The impact of this devaluation will depend on the time horizon....However, the short-term impact can be negative in some sectors which also include capital goods among others," the ASSOCHAM paper on 'Implications of Devaluation of Chinese Yuan' noted . The devaluation will make Indian exports expensive to the neighbouring country, affecting the competitiveness.

"The biggest concern is the steadily deteriorating balance on the merchandise trade account with China," the chamber President Mr Sunil Kanoria said.

In a damage control for its markets and to keep its exports competitive, the Chinese central bank has devalued the Yuan for the third time in the last five months, sending global investors into a tizzy.

The latest round of devaluation can make India's trade imbalance with China even worse. In any case, the deterioration has been rather steady and secular in the last few years with exports to China dropping. With a sharp reduction in prices of primary commodities which India ships out, the export value is bound to decline in a disproportionate manner to imports since the inward shipments comprise capital, telecom and manufactured goods.

In 2014-15, the trade imbalance at USD 48.5 increased by over a third from USD 36.2 billion (in the previous year). "This large trade deficit is essentially a reflection of India's inability to penetrate the Chinese markets, a problem that seems to have aggravated over the past three years".

In 2011-12, India's exports to China were valued at USD 18 billion, but in 2014-15, the value of exports dropped to below US$ 12 billion.

"Going forward, the situation does not look good; rather it has deteriorated with the Chinese demand for primary goods declining and crash in prices", the ASSOCHAM said.

He said while it is true that India is not as badly affected by the global headwinds, "we cannot remain insulated and the wisdom lies in cushioning ourselves with generating more traction in the domestic economy while seeking to make Indian exports competitive ".

Even in a third country market, the currency devaluation in China can make things difficult for Indian goods since the rupee depreciation has not been sharp enough to give competitive edge to the country's exporters.

"The fact that China and India compete for several export items such as textiles, leather goods, light engineering , gems and jewellery etc is an additional challenge faced by the Indian exporters. Besides, there is also a concern that a weaker Yuan will help China dump goods into the Indian market".

Exporters' highest calling, their only calling, is to make export people healthy - to rise to the top, as it is termed.

 

United AP garners second highest share in actual exports through agri export zones: Study

Thesynergyonline Exports Bureau

NEW DELHI, JANUARY 08 : "If it is surely the means to the highest end we know, can any work be humble or disgusting? Will it not rather be elevating as a ladder, the means by which we are translated?

So charting the course for the highest personification of the State with an export value worth over Rs 2,890 crore, united Andhra Pradesh accounted for second highest share of about eight per cent after Rajasthan (72 per cent) in total net exports value worth over Rs 38,300 crore in terms of states' actual exports through agriculture export zones (AEZs), noted a recent study by apex industry body ASSOCHAM.

Besides, with a value of about Rs 207 crore, erstwhile Andhra Pradesh garnered third highest share of about 14 per cent in terms of actual investments through AEZs after Rajasthan (31 per cent) and Maharashtra (25 per cent), highlighted the study conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The state also achieved a ratio of about 14 in terms of actual exports to actual investments through AEZs i.e. for every Rs 1 crore invested in an AEZ in then united Andhra Pradesh it exported fresh vegetables, grapes, mangoes, mango pulp, chilli and gherkins worth Rs 14 crore, noted the study prepared by the Agri-business division of ASSOCHAM.

Ananthapur, Chittoor, Guntur, Karimnagar, Krishna, Mahboobnagar, Medak, Nalgonda, Rangareddy and Warangal were the districts of erstwhile Andhra Pradesh housing five AEZs that received total investments worth about Rs 207 crore with total exports worth over Rs 2,890.5 crore.

Notably, export of mango pulp and fresh vegetables from Chiitoor district of then Andhra Pradesh accounted for 95.5 per cent of the actual exports from the state as of February 2013.

India's overall agricultural exports are expected to cross $300 billion mark by 2023 as factors like policy stabilization, institutional support, awareness about safety norms, implementation of strict regulations and infrastructure development will catapult the country into a major player in global agricultural market, the study projected.

"India agricultural exports (including tea, coffee and marine products) have grown almost eight times in the last decade i.e. from around $5 billion in 2003 to over $39 billion in 2013 thereby clocking a growth rate of over 21 per cent," noted the ASSOCHAM study.

However the study pointed out that agricultural trade in India is currently challenged by a host of factors - inefficient economics of scale, high level of intermediation, wastages, inadequate and inappropriate storage, procurement and distribution infrastructure, poor food safety norms adherence as well as lack of consistency in supply and quality, cost competitiveness due to statutory changes and research for processable grades and trade barriers.

"There is a need to have long term sustainable policy which attracts more investments in agriculture sector and increases private partnerships in rural and remote areas of the country," said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber's study.

"Promotion of agri export zone (AEZ) concept can not only help in achieving the goal of increasing the export earnings, but also provide several benefits like improvement of agricultural output, productivity, quality, reduction in post-harvest losses, up-gradation of technology, farmer's skills and income, besides it also facilitates development of internationally competitive production base and creation of employment," said Mr Rawat.


ASSOCHAM recommendations for reviving AEZs and boosting agri-food exports:

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The government should look to bring in private players for developing existing AEZs on a public-private partnership (PPP) model. Create awareness amid state governments field establishments that would generate public awareness about AEZs by organising awareness camps on a regular basis and adopting use of information and communications technology (ICT). Integration of government's various schemes like Mega Food Parks and Cold Storage schemes with AEZs. Establishment of dedicated central monitoring authority with branches across states to overlook co-ordination to deal with issues regarding lack of monitoring system in AEZs. Introduction of a certification zoning system within the AEZ area to facilitate high value export and emphasizing regulatory checking through accredited agencies with varying frequency based on risk category. Promotion of organically grown tea, coffee, spices, fruits and vegetables, cereals, pulses and other organic produce as they account for majority of global trade. Besides, premiums on most organic products range 35-100 per cent which is considerably higher than regular produce. Due emphasis be given on creating Indian brands in agro and food products' category which shall help in fetching good value of Indian agro-food exports. Besides, strong brands will also create goodwill for Indian products. Government should incentivize companies undertaking research and development (R&D) and constantly innovating in food and agri sector and help them in exploring export opportunities for specialty/innovative agro-food products.
 

ASSOCHAM recommendations for reviving AEZs and boosting agri-food exports:

The government should look to bring in private players for developing existing AEZs on a public-private partnership (PPP) model.

Create awareness amid state governments field establishments that would generate public awareness about AEZs by organising awareness camps on a regular basis and adopting use of information and communications technology (ICT).

Integration of government's various schemes like Mega Food Parks and Cold Storage schemes with AEZs.
Establishment of dedicated central monitoring authority with branches across states to overlook co-ordination to deal with issues regarding lack of monitoring system in AEZs.

Introduction of a certification zoning system within the AEZ area to facilitate high value export and emphasizing regulatory checking through accredited agencies with varying frequency based on risk category.
Promotion of organically grown tea, coffee, spices, fruits and vegetables, cereals, pulses and other organic produce as they account for majority of global trade. Besides, premiums on most organic products range 35-100 per cent which is considerably higher than regular produce.

Due emphasis be given on creating Indian brands in agro and food products' category which shall help in fetching good value of Indian agro-food exports. Besides, strong brands will also create goodwill for Indian products.

Government should incentivize companies undertaking research and development (R&D) and constantly innovating in food and agri sector and help them in exploring export opportunities for specialty/innovative agro-food products.

Indian pharmaceutical industry likely to touch US$ 55 bln by 2020: study

Thesynergyonline Exports Bureau

NEW DELHI, DECEMBER 28 :
Indian pharmaceutical industry is expected to touch US$ 55 billion by 2020 as against the current size of US$ 18 billion but the exports may slow down to grow at a CAGR of 7.98 per cent in value terms due to tightening of regulatory mechanism in top exports markets of the US, Russia and Africa, reveals the joint study.

The joint study undertaken by ASSOCHAM and TechSci Research says, in addition consolidation of pharmacy players in North America have resulted in the presence of leading players that hold better bargaining power. Major instances are the acquisition of the US distributor Celesio by US pharmacy Mckesson's in 2014, and formation of a joint venture between the US wholesale distributor, Cardinal Health, and CVS Caremark in 2013.

Consolidation of pharmacy players is leading to an increase in pricing pressures for generic companies existing in the US market, which is expected to result in a decline in the year-on-year growth of pharmaceutical exports from India over the next five years.

Further, a steep decline in currency in emerging markets like Africa, Russia, Ukraine and Venezuela, is expected to add woes to drug manufacturing companies that supply pharmaceutical drugs to that region, and are unable to generate high revenues on account of selling their drugs at a low priced currency.

India is the largest supplier of medicine to the US, and pharmaceutical exports from India to the US rose from USD3.44 billion in 2013 to USD3.76 billion in 2014.

Pharmaceutical exports to the US are rising due to the increasing demand for high quality generic drugs in the market. However, the growth rate for exports of pharmaceutical products from India to the US is declining, due to increasing US Food and Drug Administration (FDA) scrutiny on the quality of pharma products coming from drug manufacturing plants located in India. In order to boost the growth rate of exports to the US, Indian companies will need to leverage their compliance to US FDA regulations.

The exchange rate crisis in the country is affecting the pharmaceuticals market in Russia. For example: Dr. Reddy's pharma revenues in Russia dropped 9% in dollar terms despite a rise of 30% in Rubles. Hence, stabilization of the currency is of utmost importance in generating revenues through exports.

In addition, many Indian companies are operating through the Pharmaceutical Benefits Program (PBP) and hospital tenders, for supplying vital and essential drugs, for which prices are then regulated by the Russian government.

The exports of pharmaceutical products to Africa are being affected owing to the following barriers port delays and prolonged custom valuation, testing and certification requirements may lead to rejection of products at ports, and the cost of returning consignments to India is huge and registration process for any generic pharmaceutical drug is time consuming.

Severe shortage of well equipped drug inspectors hurting pharma exports: ASSOCHAM study

Thesynergyonline Economics Bureau

 

Drug inspector:

 

NEW DELHI, DECEMBER 09 :
India has a meager number of 1,500 well equipped inspectors for more than 10,000 factories engaged in pharmaceutical products leading to the country's products facing regulatory hurdles in the overseas markets like the US which follow stringent protocols for the manufacturing processes, a sectoral study done by ASSOCHAM and research firm RNCOS has pointed out.

It said the Indian pharmaceutical sector which made rapid strides in the global markets, is now faced with several regulatory hurdles, especially in the US and EU, according to a study on 'Focus on Quality Management in Pharmaceutical Manufacturing,' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and RNCOS.

"While at times, the US Food and Drug Administration (FDA) gets into minute details which have more to do with the cumbersome procedure rather than quality, we need to get our own house in order by way of continuous skilling of the regulators at the national and state levels in sync with the best global practices. However much we may wish otherwise, the pharma sector is and will always remain one of the most regulated sectors all across the world for the sake of public health," ASSOCHAM Secretary General Mr D S Rawat said while releasing the study.

The mismatch between the domestic regulatory mechanism and the international regime is resulting in recall and rejection of drugs made by even some of the well known companies, leading to unrest and frustration. In the long run, the pharmaceutical exports during the fiscal year 2013-14 reported US$ 14.8 billion of drug exports would take a setback.

According to the study, India ranks 4th in pharmaceutical production in the world with a production output of about US$ 31 Billion in 2014. The country has a 1.4% share by value and 10 per cent by volume in the global pharma industry. India is one of the leaders in pharmaceutical exports.

The domestic pharma market was valued at US$ 15.4 Billion in 2014, and is expected to expand at a CAGR of 13.3% to US$ 32.7 Billion by 2020. Driven by favourable demographics including growing aging population, increasing lifestyle diseases, steep growth in disposable incomes and increasing penetration of Indian drug players in the global market, India is likely to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size, noted study.

The pharmaceutical manufacturing is managed by multiple regulatory authorities, which include the Central Regulatory Agency, the office of the DCGI (Drugs Controller General of India) under Central Drugs Standard Control Organization (CDSCO) with zonal offices and the State FDAs. This makes the process of obtaining license, for pharmaceutical product manufacturing complex.

There are numerous patent offices in metro cities all over India. Each of these offices follows non-uniform patent practices. Thus, these varied practices and poor centralized controls affect the quality of the pharmaceutical products.

The pharmaceutical industry in India has a concurrent regulatory practice, which is sometimes poorly manned and poorly headed by less knowledgeable pharmacists who are not properly trained. Lower awareness among such personnel regarding the quality norms leads to non-uniform implementation of regulatory standards.

Small and Medium size manufacturers in the Indian pharmaceutical industry do not have the funds and the capacity to carry out the quality checks The government provides subsidies to only those pharmaceutical companies, which are present in special economic zones. Manufacturers which are not present in these zones are not able to avail these benefits, which they can use for the implementation of quality standards in their manufacturing sites.

With the absence of global harmonization of quality systems makes it all the more challenging for India that exports to US, Europe, Australia, Japan, etc, to comply with a plethora of regulatory guidelines across the globe, said Mr. Rawat.

Assocham for single clearance mechanism, ease of doing business, fiscal incentives

Thesynergyonline Economics Bureau

NEW DELHI, NOVEMBE 30 :
To arrest the exodus of investors from the SEZ scheme entirely benefitting the SEZs/FTZs/EZs in countries such as China, UAE, Malaysia, Thailand, Vietnam etc, the industry body Assocham advocated for single clearance mechanism, ease of doing business and fiscal incentives both direct and indirect.

In a note submitted to the Commerce and Industry Minister, the chamber says that currently there are 416 SEZs (Special Economic Zone) which have been formally approved, out of which 330 SEZs have been notified. Further, out of 330 notified SEZs, only 202 SEZs are were operational as on March 31, 2015. Nearly 3,900 units/ companies have set up their operations in these operational SEZs by making cumulative investment of Rs.2,88,477 crore.

The SEZs have created direct employment for nearly 12,39,845 persons. It is estimated that nearly double the number of indirect employment is generated outside SEZs by the Domestic Tariff Area (DTA) units which are doing business with SEZ Units and/ or Developers. All this has been delivered by only 202 operational SEZs.

..."If the entire 416 SEZs become operational, there will be quantum jump in exports from SEZs, development on industrial infrastructure and foreign investment into India", said Mr. D S Rawat, Secretary General ASSOCHAM."

There has been massive exodus from SEZs of late. In fact, until 2013, there were nearly formally approved 580-SEZs, of which over 150 SEZs have been de-notified/ have exited from the SEZ scheme in last 2 years.

This massive exodus from SEZs is mainly attributable to the factors like unstable policies relating to availability of fiscal benefits promised under the SEZ Act (particularly, policy relating to taxation), challenge of maintaining attractiveness of the SEZ Policyafter imposition of Minimum Alternate Tax (MAT) on SEZ Units and Developers, and imposition ofDividend Distribution Tax (DDT) on SEZ Developers, evident lack of pro-business stance of the Government (instead, Government's stance has been predominantly pro-revenue most of the times), lack of clarity about implication of proposed Goods and Services Tax (GST) on SEZs, issues relating to effectiveness of the Single Window Mechanism and lack of coordination across departments at the Central and State Government level.

SEZs have already a legislation in place (SEZ Act, 2006), which lends tremendous credibility to the SEZ policy and instills confidence amongst the domestic and global investors. The entire ethos and purpose of the SEZ Act/ Rules were to provide to the foreign investors simplified procedures for development, operation, and maintenance of the SEZ and for setting up units and conducting business in SEZs.

The SEZ Act that came into effect on February 10, 2006, seeks to provide for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments and most importantly simplified documentation with an emphasis on self-certification making it convenient for foreign investors to come and set up their businesses in India.

Insofar as the notified SEZs (which are not operational yet) are concerned, the required land has been already acquired by the Developers and is free from all encumbrances. These SEZs could be the best bet for the Government's "Make in India" policy, as sizeable land is already available for generating economic activity.

The Government could support the operational SEZs to optimally utilize their potential/ capacities –by creating supportive business environment, said Mr. Rawat.

India`s export competitiveness eroded by steady real appreciation of rupee : Study

Thesynergyonline Exports Bureau

NEW DELHI, NOVEMBER 16 :
ASSOCHAM study has revealed that India's export competitiveness has been eroded because of the steady real appreciation of rupee and therefore we should not be so concerned about a strong exchange rate.

In addition prices of a wide range of primary commodities have also fallen, besides the overarching impact of global demand conditions exports from certain sectors reflected the impact of policy changes domestically and in destination countries as also sector-specific issues.

Presently, micro, medium and small enterprises sector gets loans at 12-13 per cent. After subvention, this would come down to 9-10 per cent. However, India's competitors get it at around 5 per cent.

The study says that in two of the past three financial years, India's exports have contracted. India's merchandise exports in 2014-15 at $310 billion were much below the target of $340 billion set by the government for the third successive year and declined by 1.3 per cent.

For nine months running since December, 2014 the rate of growth of both exports and imports (in dollar terms) has been in negative territory. On a cumulative basis exports during the first five months (April-August) of 2015-16 at $111 billion were lower by more than 16 per cent over the same period last year.

Under the new Foreign Trade Policy 2015-20 (FTP) announced on April 1, 2015, the government has expanded the scope of the new schemes to special economic zones (SEZs). Taking exports to the level of US$ 900 billion by 2019-20 will need a higher compound annual rate of growth (CARG) of about 14 per cent during the FTP period (2015-16 to 2019-20) which could be a challenge.

Even the high interest rate regime and the overvalued exchange rate is helping the financial markets, not the real economy and export sector in particular.

Expand 1st header | Collapse 1st header | Toggle 2nd header

Study says :

Global experience shows that 10-15 per cent real devaluation could be a shot in the arm for an export surge, while a real devaluation of the order of around 10 per cent through a combination of falling inflation and allowing rupee to depreciate may provide much needed boost to exporters,” noted a recent ASSOCHAM study titled “What’s behind India’s Declining Exports.”

"Government needs to put in place temporary measures to ensure Indian exporters do not withdraw from important overseas markets during the period of downturn," suggested the ASSOCHAM study.

It further adds:

"This will help Indian exporters regain market as and when recovery takes place, this could be achieved through a combination of liberal market development assistance and easing export financing. Besides, Markets which are expected to recover fast (USA, Germany, ASEAN, Republic of Korea, and West Asia) need special focus," it added.

India has been a major user of anti-dumping measures over the past few years; there has been a significant increase in the number of new anti-dumping and safeguard investigations initiated.

In the context of the current global slowdown, it may be beneficial for the economy as a whole if a detailed economic analysis on the likely impact of the duties on downstream user industries is undertaken, prior to the imposition of duties.

Such duties may be detrimental to export prospects, if the duties are imposed on imported inputs used for producing export-oriented goods in the small scale sector which contribute significantly to India's exports.

This will help reduce transaction costs. With profit margins shrinking globally, cost competitiveness is of vital importance. In an attempt to reduce some of the transaction costs associated with international trade, the Government has been simplifying its customs procedures over the past few years.

While this is a continuing process, it needs to carry further. Import and export procedures in India take much longer than in Singapore, Thailand and Malaysia. This can partially be explained by the number of documents required to proceed, which is much higher compared to these countries.

Cost of shipping a container from India is more and roughly twice the amount paid by shippers in China, Thailand and Singapore. Finally, customs clearance for both imports and exports also takes longer The elimination of the administrative burden of import and export procedures, while not a panacea, would make great progress toward this end. The Foreign Trade Policy 2015-20 has reduced the number of mandatory documents required for export and import to three each.

With profit margins shrinking globally, cost competitiveness would be an important determinant for retaining or acquiring a share in export markets. In an attempt to reduce some of the transaction costs associated with international trade, the Government has been simplifying its customs procedures over the past few years. While this is a continuing process, it needs to be carried forward.

Cumbersome paperwork, delays caused by regulatory agencies and other bureaucratic red tape hinder trading processes, causing unnecessary delays and costs to traders. Trade facilitation can lower trade costs and in the context of the global economic slowdown there is greater need for reforms in trade practices than ever before.

FTA with EU to increase textile exports
and jobs : ASSOCHAM plea

Thesynergyonline Exports Bureau

NEW DELHI, OCTOBER 20 :
To help textile industry touch its potential of US $500 billion by 2025 from the current level of US $110 billion, industry body ASSOCHAM has advocated signing of Free Trade Agreement (FTAs) with European Union countries (EU) and entering agreement with the US before our industry become uncompetitive Trans-Pacific Partnership (TPP).

In a note submitted to the government, the chamber has stated that the estimated US$ 500 billion potential consists of domestic sales of US$ 315 billion and exports of US$ 185 billion. To achieve this huge target, great planning and action are required on the part of both the industry and the government. This looks ambitious but is not impossible as China by introducing various pro-industry policies has done the progress in the same in the last 10-15 years.

The chamber secretary general, D.S. Rawat says, the domestic market has to grow at 16-17 per cent from the present US$ 68 billion to around US 315 billion. Currently, the total textile exports from India are US$ 40 billion. Out of this, cotton exports are about US$ 21.50 billion, MMFs are about US$10.0 billion and other textiles like Silk, Handloom, Jute are about US$ 8.50 billion.

Assuming cotton exports to grow about 10% at CAGR, the total cotton exports by 2025 would be around US$ 55 billion and other textiles would be of around US$ 14 billion, thereby leaving a target of US$ 116 dollar which MMF/ Filament Yarn only can achieve. Exports of MMF / Filament Yarn are currently US$ 10 billion and in order for MMF / Filament Yarn to reach the target level of US$ 116 by 2025, this segment will have to grow at more than 25% CAGR, adds the ASSOCHAM.

However for the last 10 years, we have been regularly failing to achieve our export targets again and again because our concentration remains high on cotton. The MMF / Filament Yarn industry, which could have given much desired growth, has not been given its due attention. Now, the time has come that we give due focus on the MMF to attain our exports and desired growth for the Textile Sector, said Mr. Rawat.

Since we have not been able to complete the Doha Round of trade talks, our Textile Industry is to face at duty of 15%-30% in the developed markets of US and E.U. against the Least Developed (LD) countries like Bangladesh, Vietnam, Cambodia, Myanmar who are at zero duty. If Doha Round would have been completed our duty also would have been come down to single digit.

The Trans-Pacific Partnership (TPP) between US, Japan, Canada, Chile, Vietnam, Malaysia, Singapore, Australia, Brunei, Mexico, New Zealand and Peru, which has been signed last week will cause trade diversions effects in some of the key sectors such as textiles and clothing industries for India.

The United States accounts for 20-35 per cent of India’s ready-made garment exports and the TPP is going affect India’s textile sector in two ways: First, TPP member countries will get preferential access in the US markets as against Indian’s exporters. This would disadvantage India as US import duties on ready-made garments are high.

Secondly, the ‘Yarn Forward Rule’ – a key feature of TPP – makes it mandatory to source yarn, fabric and other inputs from any or a combination of TPP partner countries to avail duty preference. This would change the dynamics of the existing global supply chain in textile and clothing sector.

At present, India exports yarn and fabric to Vietnam, which then makes the textiles and exports to countries like the US. Now, because of yarn forward rule, they will be under pressure to develop local production. While Vietnam will have zero-duty access to the US market for textiles, Indian players will have to pay higher duties, which will make India’s which will make India’s textiles exports uncompetitive.

 

Need to create awareness about export potential of organic products amid farmers: Mohanbhai Kundariya

Thesynergyonline Exports Bureau

NEW DELHI, OCTOBER 15 :
GIVEN the growing demand for certified organic produce in the global markets, there is a pressing need to create awareness about export potential of organic products amid farmers, Minister of State for Agriculture, Mr Mohanbhai Kundariya said at an ASSOCHAM event held in New Delhi on Thursday .

"While the government is spending crores of rupees on its promotion, still majority of people are unaware about organic farming and its benefits," said Mr Kundariya while inaugurating 5th national conference on 'Organic World-Advantage India,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"With a view to minimise the use of chemical fertiliser and pesticide, farmers need to be encouraged to adopt organic farming practices which would also help in protecting land, water resources and improve farmers' economic condition," said the minister.

"Considering that potential of organic farming in India is very huge because of its immense bio-diversity and natural resources, we at the ministerial level are also taking various steps to promote organic farming and its practices in the country," he added.

"There is a huge potential for growth and development of organic farming in India owing to factors like soil health deterioration, change in climate, decline in per-capita land availability and others," further said Mr Kundariya.

He also said that adoption of organic farming on a large scale would help improve soil health, boost agriculture production and provide significant employment opportunities to the farmers.

The minister further informed that market for edible organic products in India is currently growing at 25-30 per cent.

Though India is capable of producing all types of organic products, dearth of suitable land for organic farming is proving to be a bane for its growth, he said.

Amid others who spoke at the ASSOCHAM conference included – Mr Anil Jain, chairman, ASSOCHAM Council on Agriculture and Food Security; Mr Rajashekar Reddy Seelam, founder and MD, Sresta Natural Bioproducts Private Ltd.; Mr Nitin Puri, senior president & country head, Food and Agribusiness Research Management, Yes Bank Ltd. and Mr D.S. Rawat, secretary general, ASSOCHAM.

The worst happens when you least expect it" - Dean Koontz, Watchers  

India to close 2015-16 worst in 5 years in exports; sharp slip even from US$ 300 billion: ASSOCHAM

 

BEFORE
AFTER

Thesynergyonline Exports Bureau

NEW DELHI, SEPTEMBER 20 :
"And worse I may be yet: the worst is not So long as we can say 'This is the worst." - William Shakespeare, King Lear


And so India's merchandise exports are going to hit the lowest in five years at the end of 2015-16 closing the current fiscal between USD 265-268 billion, significantly lower than USD 310 billion in the previous fiscal, thanks mainly to a sharp erosion in commodity prices in the global market and slump in their speculative demand as reflected in futures trading, an ASSOCHAM study has forecast.

"Indian exports had achieved a landmark of US$ 300 billion in 2011-12 for the first time making the country a sizeable player in global exports. Afterwards somehow, for one reason or the other we could reach a maximum of USD 314 billion in 2013-14, only to retrieve in the following year at USD 310 billion. But the fall this year is going to be very steep," the ASSOCHAM study on "Export Outlook in the face of commodity Meltdown", said.

However, it is not as if the entire export drop is coming around on the back of fall in demand for Indian goods. It is only that the global merchandise economy has moved away sharply from a very high cost, ultra bullish commodity situation to a bearish and low cost situation where demand relates mainly to the actual consumption which is rather low key.

"The pricing power as was being mirrored in the futures trading markets all over the world – be it for crude oil, metals, coal, copper or even edible items turned out to be rather myopic and has totally disappeared. Thus, there is no sentiment build-up around commodities and thus the demand is actually restricted to the real consumption. Nobody is willing to bet for futures and thus there is a meltdown in prices", the ASSOCHAM study noted.

It further stated that with the erosion in price tags, the exports in value terms have dropped while in volume, the scenario is not that bad across sectors.
"Like in the world of technology, disruptive changes are also taking place in the real world of goods exports. It will take time before we adjust from the next fiscal when the low base impact would kick in," chamber Secretary General Mr D S Rawat said.

Bulk of India's export basket comprises commodities, be it engineering goods (mostly iron ore /steel and other metals), petroleum products, which have been hit in value terms. For instance, for the month of August, the exports of engineering goods are down 29 per cent and petroleum products by 47.88 per cent.

However, the erosion is consumption demand, which is more disturbing is seen in leather goods, apparels, gems and jewellery. "These products are not a commodity play and reflect the slowdown in consumption and pressure on the consuming economies. For India, they mean a large scale employment", the study noted with concern.

Both leather products saw a decline of close to 13 percent readymade garments 7.32 per cent in August. Gems and jewellery witnessed a modest gain of 2.66 per cent which is largely a play of changing gold prices. things we have to learn before we can do them, we learn by doing them."

"Dare to outlearn your best performance."

BHEL bags top EEPC export award
for outstanding performance
 

BEFORE
AFTER

Mr B Prasada Rao, CMD, BHEL and Mr Atul Sobti, Director (Power), BHEL, jointly receiving EEPC Top Export Award from Mrs Nirmala Sitharaman.

 

Thesynergyonline Export bureau

NEW DELHI, SEPTEMBER 04 :
"Good name in man and woman, dear my lord,
Is the immediate jewel of their souls."

- William Shakespeare, Othello 

"I like work: it fascinates me. I can sit and look at it for hours."
― Jerome K. Jerome

And so for outstanding export performance, Bharat Heavy Electricals Limited (BHEL) has won the Engineering Export Promotion Council (EEPC)'s Top Export Award for the 25th year in succession. It was conferred on BHEL in the category 'Star Performer in 2013-14 for Project Exports - Large Enterprise'.
"Compete with no man but thyself.

 

Mystery of encomium

"Every time you praise something, every time you appreciate something, every time you feel good about something, you are telling the Universe, "More of this, Please." You need never again make another verbal statement of this intent, and if you were allowing your cork to float - all good things would flow to you." - Abraham Hicks | "What's in a name? that which we call a rose By any other name would smell as sweet." ? William Shakespeare, Romeo and Juliet | A Good Name : Author: Edgar A. Guest Men talk too much of gold and fame, And not enough about a name; And yet a good name's better far Than all earth's glistening jewels are. Who holds his name above all price And chooses every sacrifice To keep his earthly record clear, Can face the world without a fear. Who never cheats nor lies for gain, A poor man may, perhaps, remain, Yet, when at night he goes to rest, No little voice within his breast Disturbs his slumber. Conscience clear, He falls asleep with naught to fear And when he wakes the world to face He is not tainted by disgrace. Who keeps his name without a stain Wears no man's brand and no man's chain; He need not fear to speak his mind In dread of what the world may find. He then is master of his will; None may command him to be still, Nor force him, when he would stand fast, To flinch before his hidden past. Not all the gold that men may claim Can cover up a deed of shame; Not all the fame of victory sweet Can free the man who played the cheat; He lives a slave unto the last Unto the shame that mars his past. He only freedom here may own Whose name a stain has never known. | Your Name You got it from your father, It was the best he had to give, And right gladly he bestowed it It's yours, the while you live. You may lose the watch he gave you and another you may claim, But remember, when you're tempted, to be careful of his name. It was fair the day you got it, and a worthy name to bear, When he took it from his father there was no dishonor there. Through the years he proudly wore it, to his father he was true, And that name was clean and spotless when he passed it on to you. Oh there's much that he has given that he values not at all, He has watched you break your playthings in the days when you were small. You have lost the knife he gave you and you've scattered many a game, But you'll never hurt your father if you're careful with his name. It is yours to wear forever, yours to wear the while you live, Yours, perhaps some distant morn, another boy to give. And you'll smile as did your father, with a smile that all can share, If a clean name and a good name you are giving him to wear. - Edgar A. Guest
 

Always seek opportunities to improve upon your best performance."
― Lailah Gifty Akita


A healthy company culture is a set of norms and behaviors that support high performance and supports the team as they move towards ultimate success. Visit these norms regularly. Everybody visits them regularly, from the CEO to the Truck Drivers."
"Change does not surface

"When you are not ready to be the catalyst. Your reaction matters, not your inaction."

"Names and attributes must be accommodated to the essence of things, and not the essence to the names, since things come first and names afterwards." - Galileo Galilei, Discoveries and Opinions of Galileo

"What's in a name? that which we call a rose
By any other name would smell as sweet."
― William Shakespeare, Romeo and Juliet

So the award symbolising good name and honour was presented by the Union Minister of State for Commerce and Industry (Independent Charge), Mrs Nirmala Sitharaman, was jointly received by Mr B.Prasada Rao, CMD, BHEL and Mr Atul Sobti, Director (Power), BHEL.

Finally, on works "The journey of the sun and moon is predictable. But yours, is your ultimate art." - Suzy Kassem, Rise Up and Salute the Sun: The Writings of Suzy Kassem

Kerala tops in terms of ratio of exports and investments through AEZs: Study

Thesynergyonline Economics Bureau

NEW DELHI, JULY 27 :
Kerala is ranked on top with a ratio of about 735 in terms of actual exports and actual investments through AEZs followed by Rajasthan (59.5), Jammu and Kashmir (32), Punjab (21) and Karnataka (17) in this regard, noted a recent ASSOCHAM study.

"With an export value worth about Rs 2,278 crore, Kerala has acquired third top share of six per cent in total net exports value of worth over Rs 38,300 crore terms of states' actual exports through AEZs," highlighted a study titled 'Agri Exports: Issues & concerns,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

While Rajasthan has ranked on top with lion's share of 72 per cent amounting to an export value worth over Rs 27,600 crore followed by Andhra Pradesh (eight per cent), Kerala (six per cent), Karnataka and Punjab (four per cent each).

With a value of about Rs 465 crore, Rajasthan has topped with maximum share of 31 per cent in terms of actual investments through AEZs followed by Maharashtra (Rs 374 crore), Andhra Pradesh (Rs 207 crore), Karnataka (Rs 91 crore) and West Bengal (Rs 83 crore), further noted the ASSOCHAM study.

India's overall agricultural exports are expected to cross $300 billion mark by 2023 as factors like policy stabilization, institutional support, awareness about safety norms, implementation of strict regulations and infrastructure development will catapult the country into a major player in global agricultural market, the study projected.

"India agricultural exports (including tea, coffee and marine products) have grown almost eight times in the last decade i.e. from around $5 billion in 2003 to over $39 billion in 2013 thereby clocking a growth rate of over 21 per cent," noted the ASSOCHAM study.

However the study pointed out that agricultural trade in India is currently challenged by a host of factors inefficient economics of scale, high level of intermediation, wastages, inadequate and inappropriate storage, procurement and distribution infrastructure, poor food safety norms adherence as well as lack of consistency in supply and quality, cost competitiveness due to statutory changes and research for processable grades and trade barriers.

"There is a need to have long term sustainable policy which attracts more investments in agriculture sector and increases private partnerships in rural and remote areas of the country," said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber's study.

"Promotion of agri export zone (AEZ) concept can not only help in achieving the goal of increasing the export earnings, but also provide several benefits like improvement of agricultural output, productivity, quality, reduction in post-harvest losses, up-gradation of technology, farmer's skills and income, besides it also facilitates development of internationally competitive production base and creation of employment," said Mr Rawat.

"Persistence is the twin sister of excellence. One is a matter of quality; the other, a matter of time."  

MRPL bags top export excellence award


Thesynergyonline Export Bureau

On behalf of MRPL, GGM (F) Mr Subrata Bandyopadhyay, receiving top excellence award from Mr Sudhir Mungantiwar, the Minister of Finance, Planning and Forest, Government of Maharashtra at an Award ceremony in Mumbai.  

NEW DELHI, JULY 24 :
"Just make up your mind at the very outset that your work is going to stand for quality... that you are going to stamp a superior quality upon everything that goes out of your hands, that whatever you do shall bear the hallmark of excellence." - Orison Swett Marden

And so Mangalore Refineries and Petrochemicals Limited(MRPL) bagged the "Top Exporter Premier Trading House Award – Non- MSME category"at the Export Excellence Awards by Western Region of Federation of Indian Export Organisations (FIEO), recently in Mumbai.

On behalf of MRPL, GGM (F) Mr Subrata Bandyopadhyay received the award from Mr Sudhir Mungantiwar, the Minister of Finance, Planning & Forest, Government of Maharashtra at an Award ceremony held at Crystal in Mumbai.

The company had also won the Silver Trophy in the residual sector of the MSME category at the FIEO (Federation of Indian Export Organisation) 'Niryat Shree' Awards in New Delhi and Mr H Kumar, MD, MRPL had received the Trophy from the President of India, Mr Pranab Mukherjee.

Excellence is a talent or quality which is unusually good and so surpasses ordinary standards. It is also used as a standard of performance as measured e.g. through economic indicators.

It is a continuously moving target that can be pursued through actions of integrity, being frontrunner in terms of products / services provided that are reliable and safe for the intended users, meeting all obligations and continuously learning and improving in all spheres to pursue the moving target.

Finally, "Wealth does not bring about excellence, but excellence makes wealth and everything else good for men, both individually and collectively." - Socrates, The Apology.

85% fall in soymeal exports: Study 

Thesynergyonline Exports Bureau


NEW DELHI, JULY `16 ;
Farmers engaged in soy cultivation are highly distressed as India's soybean meal exports have dropped drastically by about 85 per cent from record level of 4.24 million tonnes (MT) during fiscal year (FY) 2008-09 to a meagre 0.64 MT in 2014-15, noted a just-concluded study by apex industry body ASSOCHAM.

Looking at near normal monsoon, the country is expected to reap rich harvest of over 12 MT soybean meal putting further pressure on the domestic prices as India has become globally uncompetitive and import of soy oil continues to increase.

"This significant slump in soybean meal exports from India is largely on account of speculation and an unrealistic approach in handling established export markets," according to the study titled 'Soybean: Time to regain lost ground,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Madhya Pradesh is known as 'Soybean bowl of India,' accounting for lion's share of 60 per cent of total production followed by Maharashtra (30 per cent), while Rajasthan, Andhra Pradesh, Karnataka, Chhattisgarh and Gujarat together account for remaining share of 10 per cent.

"Soybean scenario in India is currently at crossroads due to erratic production, declining soybean meal exports and consequent idling of plants, poor soybean oil output while edible oil imports are growing and currently account for almost 60 per cent of country's total requirement," said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber's study.

"Unless a targeted approach is initiated, India might permanently loose export market for soybean meal that has been so assiduously build over decades," said Mr Rawat.

"Industry should adopt a pragmatic approach to revive lost markets on soybean meal export front," he added.

A constant rise in edible oil imports into the country is another worrying aspect highlighted by the study prepared by the Agri-business division of ASSOCHAM.
"Edible oil consumption in India is currently growing at a compounded annual growth rate (CAGR) of three per cent thereby placing enormous burden and dependence on imports to meet current deficit of 10 MT due to near stagnant domestic production at about 8 MT against a requirement of 18 mt."

Thus, India is heavily dependent on imports of vegoils with over 60 per cent of edible oil requirement being met through imports, the study noted.

"There is a compelling need to increase production of vegoils in India and arrest the growth rate in per-capita consumption which is presently at a level of 14.4 kilograms per annum and is growing annually at three-four per cent," added the ASSOCHAM study.
Contrary to the normal price behaviour both during the lean season and peak arrival season, soybean prices moved differently during 2014.

Generally April-September/October is considered lean season for soybean and prices tend to move upwards, however prices moved downward during May 2014-October 2014 i.e. from Rs 4,694 per quintal to Rs 3,056 per quintal in Indore market-hub of soya processing in India.

Likewise, prices are usually lower to steady during November-February, as the new crop arrival pressure manifests, however prices moved upwards from Rs 3,266 per quintal in November 2014 to Rs 3,408 per quintal in February 2015.

"Such abnormal price movement during peak arrival season is not in the interest of the industry," further highlighted the study.

In its report, ASSOCHAM has outlined certain key recommendations to perk up soybean production in India, particularly in MP and Maharashtra which together account for 90 per cent of country's soybean production:
Corporate comprising private soybean processers should be encouraged to support a large number of marginal farmers that are involved in soybean cultivation, mostly in rain-fed areas with very low irrigation penetration through corporate social responsibility initiatives and buy-back arrangements for soybean.

The Government should incentivise soybeans' cultivation through intercropping with cereals wherever possible as it enhances soil nutrition. Besides, farmers should also be able to earn credit on lower use of chemical fertilisers in soybean production.

Focused research should be conducted on production and to ensure timely supply of quality seeds and also expand area under irrigation to achieve higher yields.

The Government should impose additional customs duty on soybean oil which should be used for benefit of promoting soybean cultivation and insulating domestic prices from undue instability. More so as enormous import of vegetable oils has disturbed domestic oil prices and consequently volatility in seed prices affect farmers.

There is a need to rebuild buyer confidence and make Indian soybean meal competitive in global markets due to volatility in soybean oil prices and export of soybean meal has touched 25 year low.

Poor growth in oilseed cultivation calls for reform in oilseed sector to incentivise cultivation of major oilseeds and soybean being a major contributor in India's cultivated oilseeds' basket it will gain in this respect.

A comprehensive study aimed at identifying constraints and working on solutions like introduction of modern techniques in cultivation, enhancing irrigation, providing economic and institutional support, post-harvest, marketing and value addition support should be undertaken to raise production and improve profitability in soybean cultivation.

 

 

 

 

 

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