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| ASSOCHAM moots R&D grid for food- processing industry NEW DELHI, Jan 13: Associated Chambers of Commerce and Industry (ASSOCHAM) today.....more ‘Bring back dividend tax KOLKATA, Jan 13: Leading capital market experts today suggested bringing down dividend tax.....more India’s foreign MUMBAI, Jan 13: India’s foreign currency reserves continued their upswing with a further......more |
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Not yet time for
economic doomsday talk: IMF MD KOBE, (JAPAN), Jan 13: International Monetary Fund Managing Director Horst Koehler said .....more India’s lock city being ALIGARH, Jan 13: Cheap Chinese imports are virtually locking out the Indian lock industry even.........more Weekly stock market review KOLKATA, Jan 13: Share prices failed to retain the advantages scored during the first week of......more |
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ASSOCHAM
moots R&D grid for NEW DELHI, Jan 13: Associated Chambers of Commerce and Industry (ASSOCHAM) today mooted a proposal for setting up a National Research and Information Grid for Horticulture Trade (NRIGHT) jointly by industry and Government. "The need for the proposed body has been necessitated for a continuous assessment in the size of the market, commodity composition, geographical distribution and changing consumer preferences," ASSOCHAM said in a note to the food processing industry. Trade opportunities in fruits, vegetables and flowers were expanding nationally and internationally, the chamber said in a release adding that because of rising incomes and population, the demand for fruits and vegetables would grow in the country. The demand internationally would also grow because of an increasing emphasis on "health foods", in which fruits and vegetables found a pride of place, it said. The National Horticulture Development Board had not developed along the lines the committee had envisaged, ASSOCHAM said but hoped the board would be ERS of fruits, vegetables and flowers. Unlike milk, where the producer got nearly 70 per cent of the end price, these growers got less than 20 per cent of the price paid by the consumer, the release said. Moreover, there were violent fluctuations in prices, like those witnessed in onion, potato and tomato, it added. Establishment of an effective storage, processing, packaging, transportation and distribution system was vital for sustaining a dynamic and producer-oriented horticulture industry, ASSOCHAM said. In addition, sanitary and phyto-sanitary standards and regulations would have to be developed and popularised, the chamber said adding that cold storages and refrigerated vans were needed in large numbers. The promotion of horticultural seed villages in every block in the country would multiply and distribute pure seeds of both self-pollinated and hybrid strains, superior planting material through a combination of tissue culture and mist propagation. They would also undertake micropropagation of improved varieties and distribute planting material derived from tissue culture in polyethylene bags and encourage grafting and other methods of propagation in villages, ASSOCHAM said. (PTI) |
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‘Bring back dividend tax to 11 pc to revive market’ KOLKATA, Jan 13: Leading capital market experts today suggested bringing down dividend tax to at least its earlier level of 11 per cent, if not removed completely, to revive the capital market. "The capital market index was doing extremely well till the last union budget was presented and only one factor —increasing dividend tax to 22 per cent from 11 per cent changed the entire scenario," J M Morgan Stanley Ltd. Chairman-cum-Managing Director Nimesh Kampani said. He also suggested ammendments of concerned it acts to prevent double taxation, reduce capital gains tax to six month period and change the takeover code to suite companies entering into share swap. Kampani said dividend tax was an essential factor where Government has to play a role by bringing it back to its earlier level of 11 per cent. He was speaking at a workshop on capital market: Revival and strategy for growth organised by Indian Chamber of Commerce here. In addition, Government should also bring in legislations to avoid double and sometimes even treble taxation on dividends, he said. If a subsidiary of a company like ICICI Ltd recommended dividend as per existing rules it would have to pay a tax and once again when the parent company planned to pay dividend. Kampani said if these anomalies of double taxation were not removed, corporates would soon evolve new ways to avoid tax on dividend and cited some ways of how it could be done. Kampani said if the tax related problems for dividend were not sorted out the Government’s revenue would come down instead of increasing. Corporates instead of paying dividend might go in for buy-back to the extent it was planning to pay the same to avoid taxation and might also announce bonus issue instead of dividend, he said. The CMD said certain ammendments were required in the takeover code, specially for those companies offering share swap, as investors and corporates were ‘unnecessarily forced to pay tax. Under the it act whenever there was exchange of shares it was taxable even though investors were offered shares of another company in replacement to the one which they held. "It should not be treated as transfer in case of takeover and share swap," he said. The Securities and Exchange Board of India (SEBI) Executive Director Pratip Kar and Unit Trust of India (UTI) Executive Director M M Kapur, present at the workshop, agreed with the suggestions of Kampani. Both Kar and Kapur suggested that increased inflow of funds from banks, provident funds and pension funds should be invested in the equity market. "Though banks are permitted to invest upto five per cent of their total advances in the equity market, the same was not coming through as they want to know what return they will get", Kapur said. All the speakers agreed that long term funds were a must for a sound capital market and its growth. (PTI) |
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India’s foreign currency reserves rise to USD 40,181 mn MUMBAI, Jan 13: India’s foreign currency reserves continued their upswing with a further rise of USD 173 million to USD 40,181 million for the week ended January five. The Foreign Currency Assets (FCA) increased by USD 114 million to Rs USD 37,368 million as compared to USD 37,254 million in the previous week, Reserve Bank of India said in its weekly statistical supplement issued here today. FCA expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies, such as yen, euro and sterling, held in reserves, it said. Gold reserves also rose by USD 59 million to USD 2,811 million in the reporting week while special drawing rights remained static at USD two million. Loans and advances to the Central Government increased by Rs 2,646 crore from a nil balance in previous week while that to states declined by Rs 67 crore to Rs 4,623 crore. Aggregate deposits of scheduled commercial banks as on December 29 rose by Rs 10,218 crore to Rs 9,31,657 crore while bank credit was up by Rs 10,242 crore in the fortnight to Rs 4,95,247 crore. Food credit during the period increased by Rs 503 crore to Rs 37,450 crore. Non-food credit also rose by Rs 9,738 crore to Rs 4,57,797 crore, the apex bank said. (PTI) |
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Not yet time for economic doomsday talk: IMF MD KOBE, (JAPAN), Jan 13: International Monetary Fund Managing Director Horst Koehler said today that while the global economic expansion of the past two years is losing momentum, it is not yet time for doomsday scenarios. Speaking at the Asia-Europe Meeting (ASEM) of Finance Ministers, Koehler said the United States had room to cut interest rates further, if needed, and called on europe and Japan to do more to promote sustained global growth. "It is clear that the strong world economic expansion of the past two years is losing momentum," Koehler said. He said last year’s spike in oil prices, the slowdown in the United States and the stalling recovery in Japan had "increased the downside risks in the global economy." "But ... It would be an exaggeration to embark on doomsday scenarios now," he added. Koehler said the US federal reserve’s decision to slash interest rates last week by half a percentage point was a timely measure that would help strengthen global growth. "If necessary, the US has further room to maneuver on both monetary and fiscal policy," he said, referring to the possibility of both a further lowering of interest rates and tax cuts. "But both Europe and Japan can and should do more to promote sustained growth and thereby strengthen investor confidence in the global economy," Koehler said. To this end, Koehler urged Japan to do more on corporate and financial sector restructuring and called on Europe to step up labor market and pension reforms. A new round of world trade organization trade talks would also boost confidence, he said. The IMF chief said that while much has been achieved since the Asian financial crisis of 1997-1999, more remained to be done, particularly by strengthening financial sectors. Much of Koehler’s speech dwelt on exchange rate mechanisms, and he reiterated the Washington-based Lender’s Mantra that regardless of whether countries used floating or pegged regimes, sound policies are essential to safeguard from external shocks. But he issued a caution for any nation considering using a pegged-exchange regime: "There is essentially no room for error." "While such regimes can succeed, the requirements for a country to maintain a pegged or heavily managed exchange rate are daunting — especially when the country is strongly engaged with international capital markets," Koehler said. Koehler also reaffirmed the IMF belief that the euro was undervalued and the US dollar overvalued and praised the European central bank’s intervention to support its currency. "It was right for the European central bank to make clear that a heavily undervalued Euro was unacceptable," he said. "Its interventions have demonstrated the ECB’s institutional maturity." But he warned that intervention could not ultimately thwart market trends. "Thus, intervention must be very selective and, ultimately, also well coordinated." Koehler said Europe’s economic integration has been broadly successful despite some problems, but added he thought ultimately more political integration would be needed. Koehler said that despite some problems, Europe’s economic integration had been a success story so far. "This includes, not least, the introduction of a common currency," he said. "Personally, I am still a believer that monetary union in europe has to be underpinned, in the long run, by some form of political union," he added. With regional cooperation in Asia making progress, Koehler suggested some lessons could be learned from the European experience. "Trading patterns and geography do make it reasonable to think of the creation of an internal market in Asia as a possible future stage in regional cooperation. "And why should this not be the a basis for greater monetary integration, if that is what the people of Asia desire," he said. (REUTERS) |
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India’s lock city being
locked out by cheap ALIGARH, Jan 13: Cheap Chinese imports are virtually locking out the Indian lock industry even in its home turf, Aligarh, famous for a wide range of heavy and durable locks. According to industry sources, nearly seven per cent of the lock industry has closed down during the past six months unable to meet the Chinese invasion . On the one hand, cost inputs for a locally made lock have increased in recent times raising the price of the end product. On the other, liberalised imports from abroad (mainly China and Taiwan) have brought the imported locks into the market at a much cheaper rate which has adversely affected the industry , Mr Mukesh Jain, a producer and exporter of locks told UNI. This has fuelled closure of several units in the city itself and created panic among the small manufacturers who survive on local components and age old techniques of manufacturing which is admirably good in quality , he added. Industrialists said the imported locks were nearly 30 to 40 per cent cheaper with better finish and packaging. They want the government to impose a blanket ban on the imports that affects not only the domestic industry but also fuels unemployment. They alleged that more than 3,000 people have been rendered jobless in the last six months. In case such a ban is not feasible, at least a hefty duty should be imposed on the imports to allow a breathing space for the domestic industry to pick itself up to meet the competition. Mr Ashfaq Ullah Rehmat, who has been in the lock industry since he left his studies and joined the family business some 40 years ago, says we are not against competition nor against entry of foreign goods. But cheap imports which chokes the local industry without allowing for any manouevres will ultimately kill it . All we request from the Government is to devise a mechanism that could help avoid the strangulation of domestic manufacturing in the wake of recent imports. It would be nice if the competition is healthy. It would make us shed our complacency in upgradation and better finish for products, which these imports have highlighted , he added. Meanwhile, ominous bells are ringing for the small manufacturers as well. Mr Aditya, who sells locks under his own brand name after sourcing it from several quarters, said, signs are not good for the component manufactures and small producers as most of them, instead of getting their components from Indian suppliers or manufacturers are now opting for imported ones which are not only cheap but of better quality . However, not all in the industry are dismayed or terrorised by the claws of the Chinese dragon. Ramesh Mahrotra, manufacturer and exporter dismissed the present scenario as a temporary phase . This cheap market for Chinese and Taiwanese goods would not last for long. Our superior manufacturing techniques will prevail in the end , he said. Mr Mahrotra claimed that the foreign locks were manufactured with unstandardised techniques and would not be able to hold out against locks of superior calibre, for which Aligarh was famous. This optimism is shared by several others who view the present crisis period as a time to test our resillience . Mr Ramesh Khoda, sitting in the well-appointed chamber of his export unit, seemed relaxed and unconcerned. Come April and the recent fall in fortune would bottom out. The gap between the sale of these cheap imports and Indian products would soon be closed . He said, as the WTO rules come into effect, Chinese and Taiwanese imports would no longer remain inexpensive because of the evaporating subsidies being given in those countries. Besides, India would have the leverage then to impose a duty regime of all goods not conforming to certain specifications like the ISO 9001 . Thus, there is no need for panic. More so, this difficult period has taught us a few lessons which until now we had failed to learn. For example, stress on quality, better packaging and cutting costs during the manufacturing process’’, he added. (UNI) |
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Weekly stock market review
KOLKATA, Jan 13: Share prices failed to retain the advantages scored during the first week of current year during the week ended January 12 as selling pressure once again overwhelmed the trading ring. Initially, it was the result of depression in the global bourses with the technology dominated NASDAQ plunging sharply. Later on absence of buyers coupled with some amount of bear pressure caused share prices to slide back over a broad front with the result the close showed widespread losses along the specified list. The non-specified list also showed losers due to lack of support in addition to the weakness of specified shares. Towards the close of the week there was a recovery in the nasdaq but this failed to enthuse buyers to effect new commitments, while scattered new offerings in select counters were also noted. The business volume during the week was fairly large and undertone at close markedly quiet. The exceptions to the general trend were provided by the State Bank of India at Rs.226 and Tata tea at Rs.276.20 assisted by fresh support. The Sathyam Computer scrip which had taken a severe beating earlier staged a smart come back to close at rs.385 on brisk bear covering while the refinary counters evoked interest aiding them to rule steady. Both IPCL and RPL evoked support in the latter part of the week. The CSE’s 40-share index which had wound up on January 4 at 2015.52 points dipped to close at 1978.80 points. Sentiment in Calcutta was adversely influenced by lower advices from the Mumbai market and the dip in the sensex which fell below the 4100 points mark. A senior operator said that the market was currently facing the impact of outstandings built up earlier by bull operators which had not been squared up. Their repeated BIS to lift up the market had not been successful so far because of the discouraging market conditions elsewhere in Asia as well as Europe, he said. Thus a meaningful recovery in the market did not look bright in the near term unless of course massive institutional buying emerges. This was more so in respect of support from foreing funds whose support was crucial for Indian bourses to stay strong and stable, sources added. (PTI) |
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