China is 'major engine' in global economy

Peter Mandelson, British Secretary for Business, Enterprise and Regulatory Reform, on Feb 27 hailed China as a major engine in the global economy.

At a joint press conference with visiting Chinese Commerce Minister Chen Deming in London on Friday afternoon, Mandelson said the Chinese business delegation of 150-strong members signals China's central role in British trade and economy.

"China is the fastest growing trade partner for Britain, with bilateral trade growing in double digits," he said, adding Britain is the biggest investor in China among European Union member countries in terms of total trade value.

The two countries reached deals worth $2 billion on Feb 27 in key areas such as automobile and aeroplane, medical equipment, metal and textile materials, while further intent has been expressed in creative industry, industrial design and software collaboration.

Mandelson said he was impressed that on a relatively "short notice," over 600 businesses have been drawn to Friday's symposium titled "UK & China: Partners in Business."

It indicates the political will, business enthusiasm and managerial efforts, he noted, adding that the target to boost bilateral trade to $60 billion by 2010 is "ambitious and doable."

"Britain has expertise in low carbon, advanced engineering, bio- technology, new energy and space industry which could provide China in addition to knowledge and innovation. Our economic ambitions are bound together," he noted.

Mandelson will lead a British business delegation to China at the end of April to explore more trade and investment opportunities as part of a return visit following Chinese Premier Wen Jiabao's "trip of confidence" to Europe.

He dubbed his upcoming visit to China a "trip to deliver" which will demonstrate Britain's business confidence by working together with China.

Source: http://www.chinadaily.com.cn/

Import Compliance a Measure of Readiness for 10+2

February 27, 2009 — In the past year U.S. Customs and Border Protection (CBP) issued the Proposed Rule on the Importer Security Filing (ISF, or "10+2") to satisfy section 203 of the Security and Accountability for Every Port Act of 2006. CBP received and reviewed comments from the import community; the Office of Management and Budget officially signed off on the Proposed Rule; and on November 25, 2008, CBP published the interim Final Rule in the Federal Register.

The requirements of the Importer Security Filing — unofficially named "10+2" for the 10 data elements supplied by the importer and the two elements supplied by the ocean carrier — took effect on January 26. The interim Final Rule allows for public comments (on six of the importer's data elements) to be received on or before June 1 and provides a compliance date of one year from the effective date.

Although much has been said and published on this subject, many have remained on the sidelines contemplating the resources in preparing for the implementation. CBP has granted a 12-month informed compliance period, during which importers are expected to gradually comply without the threat of full enforcement and monetary penalty.

Getting Ready

What do importers need to do to get ready? Who has the responsibility of gathering, validating and transmitting this information? How will this latest security initiative affect importers' businesses? The importer is required to submit these "10" data elements:


Manufacturer (or supplier) name and address
Seller name and address
Buyer name and address
Ship-to name and address
Container stuffing location
Consolidator name and address
Importer of record number
Consignee number
Country of origin
Commodity HTSUS number (minimum 6 digits)

The vessel carrier is required to submit these "2" data elements:
Vessel stow plan
Container status messages

The Importer Security Filing initiative states that the electronic transmission of the data elements must be executed no later than 24 hours prior to the loading of cargo onto a vessel destined to the United States. Chronologically, this requirement shifts the transmission to an earlier stage of the supply chain. An importer may designate, with the proper power of attorney, its freight forwarder to submit the data elements. A freight forwarder normally receives shipping documents with the cargo. Thus, it has access to, and may be familiar with, six of the "10" data elements: manufacturer (or supplier) name and address, seller name and address, buyer name and address, ship-to name and address, container stuffing location, and consolidator name and address.

Role of the Customs Broker

Many mid to large importers employ the services of a customs broker. In the course of electronically filing a customs entry, the broker normally transmits eight of the 10 data elements: manufacturer (or supplier) name and address, seller name and address, buyer name and address, ship-to name and address, importer of record number, and consignee number, country of origin and HTS number.

Source: http://www.sdcexec.com/online/

Drug trade down in Afghanistan; up in Venezuela, Myanmar

Sat, Feb 28 12:48 AM

Washington, Feb 28 (DPA) Afghanistan is making inroads in stemming an opium drug trade that has fuelled a growing insurgency in the war-torn country, according to an annual report on the global drug trade by the US State Department Friday.

But the US singled out Myanmar, as well as Latin American powers Venezuela and Bolivia for having 'failed demonstrably' to combat drug trafficking in their own countries.

Venezuela has become a major trafficking route for the US and Europe, while Myanmar remains the largest source of methamphetamine pills in Asia, the US said in its annual International Narcotics Control Strategy Report for Congress.

The report comes just days after the US Justice Department announced the arrest of more than 750 people in a major operation against Mexican drug smugglers over the past 21 months.

The crackdown has led to a sharp increase in violence in Mexico and kidnappings in some southern US states. The State Department last week issued a travel warning for Mexico in response.

'What you see is a government ... that is confronting these drug cartels and limiting their ability to do their business,' said David Johnson, the State Department's top official for narcotics. 'And the result is, unfortunately, a significant level of violence.'

The report said government corruption remained a 'key impediment' to further progress. As much as 90 percent of cocaine consumed in the US comes through Mexico.

Afghanistan's opium poppy cultivation has fallen 19 percent in 2008 from record highs in the two previous years, but the US warned that few inroads had been made in the country's most volatile southern provinces.

'The connection between poppy cultivation, the resulting narcotics trade, and funding of insurgency groups became more evident in 2008; nearly all significant cultivation now occurs in insecure areas with active insurgent elements,' the report stated.

The drug trade has proven a major threat to security and economic development in Afghanistan. Because of improvements in the north, poppy cultivation is now almost exclusively limited to the country's five main southern provinces.

President Barack Obama this month ordered the deployment of 17,000 extra troops to Afghanistan, increasing the US presence to more than 45,000, in an effort to stabilise the country and combat Al Qaeda and Taliban strongholds in the south.

The report also singled out Bolivia's government for severely hampering US efforts to combat drug trafficking in the region. Relations between the two countries have ebbed over the last year, but Johnson said it was 'essential' the US and Bolivia improve cooperation.

Colombia, which receives substantial aid from the US, has 'consolidated' gains in the past year against a drug trade that has fuelled its own long-running conflict with leftist rebels, Johnson said.

The report identified 20 countries as major drug producers or traffickers: Afghanistan, The Bahamas, Bolivia, Brazil, Myanmar, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, Paraguay, Peru and Venezuela.

Source: http://in.news.yahoo.com/

Dow in talks to sell stake in agri business: Report

NEW YORK: Dow Chemical Co is in talks with a group of private-equity firms about an investment in its agricultural-sciences unit, said a Wall Street Journal report, citing people familiar with the matter.

Dow is in early-stage discussions with a group of firms including Blackstone Group Inc. and Kohlberg Kravis Roberts & Co. about a multibillion-dollar minority stake in the division, said the article on the Wall Street Journal's website.

Dow is actively seeking funds to complete its planned purchase of specialty chemical maker Rohm and Haas Co. Dow's has been forced to delay the closing of this deal, after Kuwait backed out of a $17.4 billion joint venture with Dow - the proceeds from this deal were to fund the Rohm and Haas buy.

Rohm and Haas has sued Dow in an attempt to force Dow to close the deal. A trial in the matter is scheduled for March 9.

Analysts, have suggested that Dow could raise between $5 billion and $7 billion from the sale of its AgroSciences business, which makes insecticides and licenses traits used in genetically modified seeds.

The business has also received attention from rival Swiss crop-sciences company Syngenta, among other potential corporate buyers, said the WSJ report.

"We believe that management is considering all of its options, with a sale of AgroSciences being one of them," said HSBC analyst Hassan Ahmed, in a note to clients.

"If Dow decides to sell assets to raise cash, the business would likely be the first to be put up for sale, given its lack of integration with the rest of the businesses, and in this current weak macroeconomic environment, the relative ease of finding a potential suitor for a defensive business."

A Dow spokesman declined to comment on whether Dow was in talks to sell the whole or a part of the AgroSciences business, but said the company is considering all options.

"Given the unprecedented economic environment, we continue to assess all options for providing greater financial flexibility through the current period," said Dow, in a statement.

"While Dow's has been moving forward on a number of fronts in recent weeks, no specific actions have been finalized."

Last month, Dow's Chief Executive Andrew Liveris did confirm that the largest US chemical maker is currently considering the sale of about a dozen assets.

Source: http://economictimes.indiatimes.com/News

Colour manufacturers busy for the festival of colours

Sat, Feb 28 10:55 AM

Hathras, February 28 (ANI): With the festival of colours 'Holi' round the corner, the colour-manufacturing units at Hathras in Uttar Pradesh are working overtime to meet the huge demand for colours from many parts of the country. Workers at Hathras colour manufacturing industry say that not only during Holi, but during other festivals also, colour is exported to other states from the town.

Laxman Singh, an owner of a colour-making unit said that the aim is to churn out new quality products every year ahead of Holi to combat the increasingly tough competition.

Source: http://in.news.yahoo.com/

GAIL to sell 4.88 mscmd gas to fertiliser units

Gail India Ltd, the country’s largest gas distributor, will sell 4.88 million standard cubic metres per day (mscmd) of natural gas per day to four fertiliser units in the country.

The company signed the contracts for the sale of the gas today with Urvarak Videsh Ltd (UVL), the owner of one of the four fertiliser plants at Barauni, and National Fertilisers Ltd (NFL) that owns the other three plants at Panipat, Bhatinda and Nangal. While the Barauni plant will be supplied 2.11 mscmd gas, the balance 2.77 mscmd gas will be sold to the three units of UVL.

Gas supplies will commence once the fertiliser units are revived. The revival of the Barauni unit is slated to be completed by 2012-13, while the conversion of the NFL plants is to be completed by 2011.

“The contract period is 15 years from the date of commencement of supplies. Gas for the supply will be sourced from sources like the KG basin or other Nelp blocks,” according to a statement released by the company.

Source: http://www.business-standard.com/

Tata Steel's consolidated net profit dips 44%

Tata Steel, the world’s sixth largest steel maker, posted a 44 per cent fall in its net profit to Rs 732.21 crore on a consolidated basis for the quarter ended December 2008, owing to high raw material costs, inventory build-up and a foreign exchange loss of Rs 200 crore.

Net sales have risen 4.05 per cent to Rs 33,191 crore as steel prices were higher in the third quarter compared to the corresponding period last year.

Production cuts of up to 40 per cent at its Anglo-Dutch subsidiary Corus have also affected the revenue growth. Low demand for steel has led to an inventory build-up worth Rs 2,352 crore.

Tata Steel’s India business also saw a fall of 3.5 per cent in the quarter ended December because of the low demand and the subsequent fall in prices. "These are unprecedented times but still, we managed to register profits because of our geographical spread, product mix, synergies with international operations and also with ownership of raw materials. In the future, we are looking at lower raw material contract prices as the company is renegotiating with the suppliers," said B Muthuraman, managing director, Tata Steel.

Philippe Varin, chief executive of Corus, said, "Until June 2009, Corus will continue its production cut that began with the shutdown of three blast furnaces in Europe. The move is due to the continuing lower demand in the international market. Corus has sold off its aluminium as well as teesside cast businesses as part of cost cutting."

Steel makers around the world have seen sales and prices fall as the credit crisis and economic slump hit demand from major steel consuming sectors such as automotives, consumer goods and construction.

Tata Steel said the net profit would have been lower by Rs 4,256 crore had it followed its earlier accounting practice instead of recording actuarial gains and losses on employee benefit funds in reserves and surplus.

Tata Steel has repaid $500 million (Rs 2,500 crore) debt raised for the Corus acquisition in 2007. "The company has no repayment till December 2009. In 2010-11, we have to repay $798 million and $1.3 billion in 2011-12," said Koushik Chatterjee, group chief financial officer, Tata Steel.

Even as the steel major re-prioritised its capital expenditure for new projects in view of the global economic slowdown, it said the expansion of its Jamshedpur unit is on track. "The 3-million tonne expansion plan at Jamshedpur is on track and will be completed by 2010," Muthuraman said.

Tata Steel has undertaken brownfield expansion to enhance its production capacity to 10.5 million tonnes from the present 6.8 million tonnes.

In the April- December period, Tata Steel has registered a 45.3 per cent rise in net profit at Rs 11,469 crore, while net sales for the consolidated entity rose 26.63 per cent to Rs 1,20,914 crore.

Source: http://www.business-standard.com/

Sodexo Pass USA Named Winner in Third Annual Paybefore Awards

GAITHERSBURG, Md., February 27, 2009 - The annual Paybefore Awards are the oldest and most prestigious awards to recognize excellence in the worldwide prepaid and stored value card industry. To date, more than 130 organizations and individuals have been honored by Paybefore for their achievements.

“We are honored for this recognition of The Esteem Pass program and proud to have partnered with eCommLink to develop a unique addition to the corporate incentive market. eCommLink's flexible platform allowed us to create The Esteem Pass, which can be used for purchases at a variety of popular retail brands unlike traditional single-retailer gift cards,” stated Vincent Hillenmeyer, president, Sodexo Pass USA.

The Esteem Pass program by Sodexo was selected by a panel of five industry experts who served as judges for this year's competition.

“Paybefore Awards shine the spotlight on terrific people and companies using prepaid to provide innovative payment solutions,” said Marilyn Bochicchio, CEO, Paybefore. “It's our honor to recognize the efforts of Sodexo as a leader in its category.

“The number of nominations considered this year was almost double last year's, making winning an even more significant achievement,” she continued. “The quality of the nominated products, services and programs was exceptional, creating quite a challenge for the judges who carefully evaluated each entry on its merits and in context of all the nominations.”

Esteem Pass is a multi-merchant incentive gift card and an exciting new program for corporate recognition and reward. Offering flexibility and choice to consumers, Esteem Pass incentive gift cards are different than typical offerings because users have a single card that can be used at over 20,000 locations operated by 35 leading brands. Esteem Pass also offers value to its retail partners by selecting the number of retailers in the program to direct cardholders to their locations and by offering exclusivity to category leaders. "The Esteem Pass program offers a truly unique way for corporations to motivate and engage their employees. We were proud to partner with Sodexo in the creation of this program and are excited that it has received such a prestigious award," stated Ennio Ponzetto, CEO, eCommLink.

Esteem Pass gift cards are a Discover® Network Prepaid Gift Card issued by Palm Desert National Bank, a federally chartered bank and sold business-to-business by Sodexo as a corporate reward and incentive and gifting solution. The cards are fulfilled and managed by Sodexo Pass USA.

The Esteem Pass™ program now will compete for Paybefore Awards' coveted Best-in-Category designation at the 2009 Prepaid Card Expo to be held in Orlando, Fla., March 9 -11.

Source: http://www.sodexousa.com/

Reducing Costs in the Paper Industry with NSK Global Paper Company Saves with NSK's Asset Improvement Program

Ann Arbor, MI, February 27, 2009 --(PR.com)-- NSK Corporation (NSK) continues to assist customers in cost reduction activities in a sluggish manufacturing environment. By complementing world-class motion and control products with unparalleled industry expertise and a comprehensive Asset Improvement Program (AIP), NSK offers customers access to the tools they need to cut costs without sacrificing quality and efficiency.

Working with a global paper company at its Michigan mill, NSK provided technical support and implemented improved tracking and reporting capabilities that led to the realization of cost savings of more than U.S. $75,000.

Although the mill already had a full maintenance program in place, the repair and refurbishment of large bore spherical bearings was an area in which the company was investigating potential cost-savings opportunities. NSK inspected bearings currently in use, and associated machinery and processes, and recommended a highly visible and efficient monitoring process that led directly to increased uptime and mill efficiency.

As the manufacturing sector struggles to maintain profits and output during the current financial climate, cost-cutting measures are being sought to offset declines in sales and increases in the cost of materials. NSK's AIP program provides valuable insight into the correct motion and control products for customers' applications in addition to optimum installation and maintenance procedures. NSK's technical staff also engages in application analysis to ensure that a customer's machinery is working at peak levels.

"By taking advantage of NSK’s expertise in the pulp and paper industry, our clients gain access to vital cost-savings tools and services. Our knowledge and experience enhance existing maintenance programs or allow us to implement new systems to ensure the highest level of productivity possible,” says Donald Robertson, NSK Segment Manager.

Allowing maintenance staff access to more engineering and technical support, faster and more accurate maintenance decisions can be made. Enhanced tracking of each bearing throughout the mill has led directly to cost savings as the company more efficiently maintains and replaces in-use components.

NSK has engaged in technological challenges for many years, working with customers in the pulp and paper industry around the world to develop effective solutions. Significant investment in R&D has led to NSK's continued development of industry-specific high performance products and value-added, cost-effective solutions to problems facing the industry as a whole.

NSK continues to create exceptional products and analytical techniques to respond to field requirements of the pulp and paper industry. NSK aims to provide a valuable resource in an economic climate that demands the highest efficiency and the lowest costs to keep manufacturers profitable.

About NSK Corporation
NSK Corporation is a member of the NSK Ltd. Group of companies headquartered in Tokyo, Japan. As one of the world's leading bearing manufacturers, it produces and distributes over 100,000 different types of bearings, linear motion and automotive component products.

In the United States, NSK operates with strategically located distribution centers that supply both the original equipment and industrial distribution market. Its network of authorized distributors have the expertise, inventory and delivery systems to meet industry needs- working in partnership with NSK sales and engineering teams to ensure that industry's needs are met with precision and speed. For more information, visit www.thinknsk.com.

About NSK Limited
Headquartered in Tokyo, Japan, NSK Limited is a world-class producer and innovator of motion and control products. Established in 1916, NSK became a world leader in the industry because of an intense commitment to engineering research, modern manufacturing processes and superior quality.

Today, the company is one of the world’s largest bearing manufacturers, employs over 23,000 people worldwide, has 57 global manufacturing facilities and over 125 sales offices, operates 13 technology centers and produces and distributes over 100,000 different types of bearings, linear motion and automotive component products. For more information, visit www.nsk.com.

For more information, please contact:
Stephanie Eldred
5th Business
5100 Orbitor Drive, Suite 100
Mississauga, ON L4W 4Z4
T: 905 275 2220 x353
F: 905 275 2245

Source: http://www.pr.com/

Kerala handloom industry in doldrums

Kozhikode (PTI): Once a major source of employment in the industry-starved Kerala, the handloom textile sector is in doldrums owing to various factors forcing weavers to shift to other jobs to earn a living.

Till 1995, about five lakh people were engaged in the sector despite facing serious problems like low productivity, inadequate working capital, weak marketing line and competition from the mill sector.

But today the number has come down drastically to less than two lakhs with more than 50 per cent of the cooperative societies closing down in the last decade.

According to E Sureshan, Secretary of a cooperative society's unit in Kakkodi near here, there are two types - factory and cottage - in the handloom sector.

Those working in factories were enjoying all kinds of benefits like Provident Fund and ESI, but "weavers who get less than Rs.100 a day and struggle to meet both the ends are leaving the cottage type to take up other suitable jobs'.

`If at all we are still surviving in the field, it is due to the support given by the LDF Government,' he said pointing out to the substantial allocation made in the state budget last week.

The societies have to come together to work out a comprehensive wage revision for the weavers, he said.

Not long before, handloom industry occupied a prominent place in the country's economy next only to agriculture.

Being one of the largest producers of handloom, Kerala was next only to Andhra Pradesh, Tamil Nadu and Uttar Pradesh with exports reaching countries including Norway, France, Britain and several European nations.

`Those days are gone.... Today we are no more in a position to meet the export demand,' says Konneri Society Secretary, T T Koya Moideen.

Stating that the weavers were facing a stiff challenge from the powerloom sector, he says though people like to purchase handloom material, there was no proper encouragement to them. 'Powerloom goods are offered at cheaper rates and we are not able to compete with them as we need better manforce.

'Over 120 weavers were working in our society till four years before....But the number has now come down by half.' Despite the government introducing several welfare measures, there were no shor-term measures that would provide immediate relief, he says.

The societies were also overburdened having availed huge loans from the banks and the government should consider writing them off if the industry had to survive in the coming days, Moideen said.

Hantex Regional Manager N K Bhaskaran said there was a huge demand for handloom goods across the state and the government had also proposed to promote handloom clothes as uniform for school children.

`Even now, in jails, hospitals and several government offices, handloom cloth is used as common uniform', he said. Handloom industry is popular in Thiruvananthapuram, Palakkad, Kannur and Kozhikode in the state but sources in the societies say that the production trend was in the red in all the districts.

Says Cooperative Society Inspector K M Pavithran `the societies brought in over Rs.Two crore as profit last year and that was solely due to the support extended by the state government'.

`The government has come forward to incur all the expenses to hold handloom melas which the societies had to bear earlier', he said, adding while there was good market for the product, the workers were not so keen to continue for want of better wages.

On an average, a handloom weaver earns around Rs.100 a day which in present day's condition cannot help to meet a family's requirement even to the bare minimum, he said.

`Now that the Government has allocated more funds for the handloom sector in the budget, we only hope that the industry can be revived fast to regain the past glory of the state as a frontrunner in the field', he added.

Source: http://www.hindu.com

Vodafone and Microsoft forge global deal on business services

Vodafone and Microsoft have teamed up to offer a business comms and collaboration package for businesses. Microsoft Online Services is launching in the US today and will hit other markets in the first half of 2009.

Under the agreement Vodafone will offer a single package involving both fixed and mobile voice and data, customer equipment and handsets to both large and small business users.

The services themselves will be hosted by Microsoft and will comprise Microsoft Exchange for email; SharePoint for collaboration; Office Communications for instant messaging and presence; and Live Meeting for web conferencing and videoconferencing.

The offer seems to be designed to appeal to businesses looking to trim costs and rationalise their comms environments by pulling all these capabilities into a single package. As a global player with a presence in all the main developed markets, Vodafone is a natural fit for Microsoft.

The companies say they're going to grow the partnership and the capabilities available from the unified comms package to include Vodafone Voice Services (not yet included) and Virtual PBX capabilities.

Source: http://web20.telecomtv.com

'Exporters to benefit from simple & fast procedures'

The trade facilitation measures or supplement to foreign trade policy announced on Thursday includes a plethora of procedural simplification norms and incentives for the exporting community. Director-general of foreign trade RS Gujral explains the nuances of the measures announced in an interaction with ET. Excerpts:

Could you give us details of the special package of Rs 325 crore for the leather and textiles sector?

The minister will decide the specifics at an appropriate time. It could include allowing exporters market linked focus products (incentive to export specific products to specific markets). The quantum of incentive and the markets for which it will be provided will be decided by the minister. The sectors, which will be included in the scheme, are the ones which have been more severely affected.

How the decision to delink grant of incentive scrips under various reimbursement schemes from realisation of export proceeds will benefit exporters?

Incentive scrips under schemes such as DEPB, focus product and focus market would now be provided immediately on exports without bankers realisation certificate which sometimes used to take 10 months to 18 months. Now, like duty drawback, these scrips would be provided as soon as exports take place. Exporters will now have to give only shipping bills and bankers certificate of export to get the scrips. We will also be stipulating guidelines to be notified separately to prevent misuse.

Are there other relaxations, too, in terms of using the duty-free scrips for imports?

Yes. Earlier, these scrips were allowed to be used for only freely importable items. Now, these can also be used for importing restricted items. The government will continue to monitor imports in order to see whether there is sudden surge and whether there would be any adverse impact on any sectors.

To what extent will the industry be benefited by the extension of export obligation period against advance authorisations by up to 36 months?

This is a major measure for exporters. Earlier, if any extension was allowed beyond 24 months, a composition fee was charged. The fee was 2% for the first six months and 5% for the next months But now, exporters will not have to pay any charges for 36 months.

Could you elaborate on the measure reimbursing additional duty of excise levied on fuel for 100% EOUs?

The government has been reimbursing the duty paid on fuel by 100% EOUs. The additional duty was not being reimbursed. It has now been decided that the additional duty, too, would be reimbursed.

Source: http://economictimes.indiatimes.com/

India - Textile co`s call for duty drawback, upset with Trade policy

26 Feb, 2009 - India
In the interim trade policy, the custom duty under Export Promotion Capital Goods Scheme (EPCG) was cut to 3% as compared to 5%. Duty Entitlement Passbook (DEPB) Scheme for exporters was extended to December.

According to the industry, the textile sector is going through its own ‘S’ curve at this juncture. Most of the textile companies are US based and Europe based where there is a tremendous slowdown in demand. Therefore, the industry expected some more stimulus packages from the government to see a revival and protect a lot of job losses.

Industry expected more

Rajendra Hinduja, ED, Gokaldas Exports, said the foreign trade policy is pretty lukewarm as there is nothing much in it for the apparel sector. He said the company was expecting an increase of duty drawbacks and interest subvention. "This has not found place in the policy. If that doesn't come through now in these difficult days, then there would definitely be more job losses of nearly 5-7 lakh in the next 2-3 months."

Akhil Jindal, Director, Welspun India expected a much better help from the Centre in the textile segment. “We are looking at a situation where there are tremendous pressures building up on all counts. Internationally, there is a demand compression. Costs are going up. So, I would have recommended a much more liberal policy in terms of the duty drawback, which could have probably taken our earnings to a higher level.”

Jindal is of the view that the Commerce Minister was very bullish on USD 200 billion export turnover by 2010 and feels that this remains a challenging number. This is very much required for us to maintain and sustain the GDP growth of around 6-7%, he added.

State of textile industry

Hinduja said orders are being snatched by neighbouring countries like Bangladesh and Vietnam. "We are losing out on terms of 4-5% in difference in price and that's the reason we were requesting the Finance Minister to give us 3-4% increase in the drawback. China has increased its drawback from 12% to 17%, Bangladesh from 11% to 15%, and Vietnam up to 15%. We are getting 8.5%."

The apparel industry, he said, has done USD 9.7 billion in exports in 2007-08. "But this year we may not cross USD 8.5 billion, which is an about 12-13% dip."

On custom duty reduction

Jindal believes that the reduction in custom duty from 5% to 3% under the EPCG scheme will not have any material implications going forward because not many people in this market are looking to really get the machinery in the investment mode. “Most of the companies are just consolidated on the investment that they have made in the past. So to that extent this is a welcome change. But this is not going to affect profitability in the short run. Over the long to medium-term, this might be helpful. But we need steroids at this juncture not vitamins. So to that extent this is not going to help immediately.”

What the industry needs?

Akhil Jindal lists out three things which he expected. “The industry needs a better drawback scheme because at one point in time there was a drawback which was around 11%, and then it was brought down to around 4% and then it was hovering around 4%. So there is a 6-7% possibility on the drawback itself. The second thing that probably will help the industry is bringing the input costs down. Cotton, chemicals and other things that are very heavily involved in textile making, they could bring the cost of production down and make the textile industry very competitive vis-à-vis Bangladesh, Pakistan and China. The third is providing effective TUF loans or Technology Upgradation Fund loans, which can certainly help in terms of deferment of cash flows.”

Source: http://yarnsandfibers.com/

Indian Leather, Textile Sector Exports To Get Rs.325 Cr. Relief Package

Kamal Nath, Minister of Commerce and Industry on Thursday announced a special package of Rs.325 crore for the leather and textile export sectors, immediate settlement of duty credit scrips under DEPB scheme and an extension of such scrips for the import of even restricted items after the payment of duty.

Announcing the final stimulus to the slowdown-hit export sector, the minister said the special package for the twin sectors would be given for exports to be undertaken from April 1 this year.

Highlights

The recognition slab for premier trading houses based on export turnaround has been reduced to Rs.7,500 crore from Rs.10,000 crore.

Under the Export Promotion Capital Goods Scheme, where the decline of exports of the products was more than 5%, the export obligation for all exporters of those products will be reduced proportionately. This has been extended for the fiscal year 2010, for exports made during 2008-09, while the export obligation period against advance authorizations has been extended up to 36 months from the current 24 months.

For import of precious metals, STCL Ltd., Diamond India Ltd., MSTC Ltd., Gem and Jewellery Export Promotion Council and Star Trading House, have been added as nominated agencies. Import restrictions on worked corals have been removed. Authorized persons of gems and jewellery units in export oriented unit or EOU will be allowed personal carriage of gold in primary form up to 10 Kgs. in a financial year, subject to Reserve Bank of India and customs guidelines.

The Minister said the duty credit scrip used for payment of duty only on items that fall under free category is now extended for restricted items as well under Duty Entitlement Pass Book and the duty credit scrip will now be issued immediately for realization of export proceeds. The value cap applicable under DEPB has also been revised to two products.

For advance license issued prior to April 1, 2002, the requirements of modvat/cenvat certificate will be dispensed with in case of customs notification prescribed for payment of countervailing duty.

The procedural formalities for claiming duty drawback refund and refund of terminal excise duty for deemed exports have been further simplified. Kamal Nath said the reimbursement of additional excise duty levied on fuel would also be admissible for EOUs.

In order to boost rural exports, a re-credit of 4% special additional duty of SAD, in case of payment of duty by incentive scheme scrips such as Vishesh Krishi and Gram Udyog Yojana, FPS and FMS, would now be allowed.

The Minister said Bhilwara in Rajasthan for textiles and Surat in Gujarat for diamonds have been recognized as Towns of Export Excellence, so that all the benefits for such clusters of export activity would accrue to them.

In a measure to improve health infrastructure, the export of blood samples is now permitted without license after obtaining 'no objection certificate' from the Director General of Health Services.

Nath announced that a new office of Directorate General of Foreign Trade would be opened at Srinagar to increase the export potential and employment generation. He further added that electronic message transfer facilities for advance authorization and EPCG Scheme established for shipments from electronic date interchange or EDI ports from April 1 this year.

While highlighting the achievement during 2004 to 2008, Kamal Nath said India's exports during the fiscal year 2008 touched $162 billion from $63 billion in 2003-04, registering an average annual growth rate of over 25%. The Minister expects to achieve $175 billion for the fiscal year 2009. As a result of increased economic activity, the Minister said that, there is generation of around 140 lakh jobs in the export sector.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

Source: http://www.rttnews.com/

Gems, jewellery shares up on govt moves

MUMBAI (Reuters) - Shares in gem and jewellery exporters rose as much as 6 percent on Friday after the government allowed agencies under the sector to import precious metals and extended tax exemptions and refunds for exporters.

On Thursday, Trade Minister Kamal Nath said Export Promotion Council for Gems and Jewellery, Diamond India Ltd , MSTC Ltd and STCL Ltd are allowed to import precious metals.

"Administratively this makes it a lot easier for people to handle gold imports and so from the operational point of view, it will really help the sector," said Neelesh Hundekari, Principal at consulting firm A.T. Kearney Ltd.

The government also extended tax exemption for 100 percent export oriented units to March 31, 2010 and the tax refund scheme for exporters until December 2009.

At 11.07 a.m., shares in Gitanjali Gems, which had risen as much as 6.63 percent, were up 2.86 percent at 39.55 rupees, while shares in Rajesh Exports were up 2.32 percent at 24.30 rupees, after rising to 25.25 rupees.

Source: http://in.reuters.com/

Gems, jewellery shares up on govt moves

MUMBAI (Reuters) - Shares in gem and jewellery exporters rose as much as 6 percent on Friday after the government allowed agencies under the sector to import precious metals and extended tax exemptions and refunds for exporters.

On Thursday, Trade Minister Kamal Nath said Export Promotion Council for Gems and Jewellery, Diamond India Ltd , MSTC Ltd and STCL Ltd are allowed to import precious metals.

"Administratively this makes it a lot easier for people to handle gold imports and so from the operational point of view, it will really help the sector," said Neelesh Hundekari, Principal at consulting firm A.T. Kearney Ltd.

The government also extended tax exemption for 100 percent export oriented units to March 31, 2010 and the tax refund scheme for exporters until December 2009.

At 11.07 a.m., shares in Gitanjali Gems, which had risen as much as 6.63 percent, were up 2.86 percent at 39.55 rupees, while shares in Rajesh Exports were up 2.32 percent at 24.30 rupees, after rising to 25.25 rupees.

Source: http://in.reuters.com/

Industry, exporters welcome interim foreign trade policy

New Delhi (PTI): India Inc on Thursday welcomed the trade facilitating measures announced in the interim foreign trade policy saying the steps will provide support to the Indian exporters reeling under the global economic slowdown.

"The measures are pragmatic keeping in line with the requirements of the time and will help the exporters in reducing transaction costs and time," Federation of Indian Export Organisations' President A Sakthivel said.

FIEO, the apex exporters body said, measures like rise in the number of nominated agencies, declaring Surat as a town of export excellence and increase in limit of personal carriage of jewellery, would boost the gems and jewellery sector.

However, FIEO asked for simplification of reimbursement procedure for instant refund of service tax.

Industry chamber CII said the announcements made by Commerce and Industry Kamal Nath would go a long way to address the concerns of Indian exporters.

"Announcement of the supplement to the foreign trade policy would go a long way in boosting employment generation in India as the export sector is the second largest employment generator in the country," CII Director General Chandrajit Banerjee said.

Source: http://www.hindu.com/

B2B e-commerce in China hits USD 202 million in Q4 2008

During Q4 2008, online transactions on B2B e-commerce services providers' websites in China have reached USD 202 million in value, according to a consulting company cited by IT news portal digitimes.com.

This is a 6.2 percent increase over the corresponding quarter of 2007 and a 24.8 percent jump on year-over-year basis. Alibaba.com holds the biggest share of the transactions value for the period under review, namely 63.51 percent, followed by B2B media company Global Sources and B2B portal Made-in-China with 7.31 percent and 6.46 percent, respectively. Data has been released by Analysys International.

Source: http://www.thepaypers.com/news/

'China committed to free trade' commerce minister

Zurich, Switzerland (Xinhua): China remains fully committed to free trade and believes it is the right way to help the world out of the financial crisis, Chinese Commerce Minister Chen Deming said on Wednesday.

"No country can escape the global financial crisis and economic downturn. Only through opening markets can we solve the problem," Chen told Xinhua in an interview Wednesday evening as he arrived in Zurich at the head of a large business delegation.

Switzerland is the second stop on the delegation's four-nation tour to buy goods and technology.

Chen said the group's trip is a concrete move taken by China to fight protectionism.

"It shows China's willingness to overcome the current economic difficulties together with others," he said.

Chen pointed out that Europe and the United States had spent more than $1.5 trillions on their economic stimulus packages. However, in an apparent reference to the United States, he said if every country limits spending to within its borders and requires purchase of its own products, it will harm chances of a global recovery.

The U.S. government recently passed a $787-billion- stimulus package containing a "buy American" provision, which stipulates that public works and building projects funded by the stimulus use only U.S.-made materials.

The provision has raised concerns about protectionism and been met with strong criticism from foreign governments and business groups.

In contrast to the "buy American" provision, China is adopting an open trade approach by sending companies to "buy European" goods.

Earlier Wednesday, the delegation wrapped up their first stop in Germany, signing 37 procurement deals worth about 11 billion euros ($14 billion ) with local firms.

Chen said the expected purchase deals with Switzerland would be modest compared with Germany due to the gap in the two countries' economic scales. He put the price tag at $300 million.

"Swiss companies have an advantage in precision machinery, pharmaceuticals and chemical industry," Chen said, adding that such products would be essential to facilitate the adjustment of China's economic structure and growth mode.

The Chinese delegation is scheduled to meet Swiss companies on Thursday morning and fly to the Spanish capital of Madrid later in the day. Their last stop will be Britain.

Chen is expected to meet Swiss Economy Minister Doris Leuthard to prepare for negotiations on a free trade deal between the two countries agreed upon during Chinese Premier Wen Jiabao's recent visit to Switzerland.

In view of the WTO headquarters being located in the Swiss city of Geneva, Chen also expressed readiness to increase multilateral trade.

Chen said it was a pity that the Doha Round of global trade talks remained deadlocked after seven years of negotiations.

A key effort to revive the round at the end of last July failed again due to differences between the United States and India on a special protection mechanism for agricultural products of developing countries.

"The world multilateral trading system should carry on," Chen said. "A fair and transparent multilateral trading system can boost confidence and is conducive to world economic recovery."

He said China is playing a bigger role in the Doha Round of talks and will throw its full weight behind WTO Director General Pascal Lamy.

Lamy is slated to pay a visit to China in April, with the Doha Round high on the agenda, according to Chen.

For Chen, the buying mission is merely a beginning. He said there would be more Chinese delegations coming to Europe with the aim to promote bilateral trade and investment.

"China cannot save the world, but China will show that it will be able to keep its economy in shape, and that will be a big contribution to the world," said Chen. "China will stand against protectionism and remain committed to open market in trade and investment."

Source: http://www.thehindu.com/holnus/

China, Germany sign $14b trade deals

China and Germany signed trade agreements Wednesday worth 11 billion euros ($14 billion) as a high-level delegation is on a procurement trip in four European countries.

The Chinese delegation, led by Commerce Minister Chen Deming, signed in Berlin a total of 37 procurement deals with German companies on the electronics, automotive, textile and medical industries among others.

According to Chen, the deals are composed of two parts -- purchasing contracts, and cooperation agreements which need further negotiations.

The deals focus on engineering equipment, electronics and auto vehicles like Mercedes and BMW, Chen told a press conference.

A draft deal obtained by the media showed that the Chinese side agreed to buy around 37,000 BMW cars and Mini worth $2.2 billion, as well as 27,000 units of Mercedes cars.

Chen revealed that apart from the current 200-member delegation, China would send more entrepreneurs to Germany to discuss further investment in both countries.

Germany is one of China's important trading partners within the European Union (EU). In 2008, the Sino-German trade hit $115 billion. Despite the world economic crisis, China and Germany have vowed to maintain the trade volume unchanged this year.

Prior to the deal-signing ceremony, more than 450 Chinese and German business representatives attended a forum on exploring cooperation opportunities.

Chen and German Economic Minister Karl-Theodor zu Guttenberg condemned trade protectionism that has cropped out amid the global economic crisis.

Chen said the procurement deals reflect China's sincere objection to trade protectionism, adding that opening the market is the proper approach to address the global economic recession.

Guttenberg lauded China's procurement, and joined Chen to slap trade protectionism.

The 37-year-old minister said Germany and China are top two exporters in the world, noting that trade protectionism is a " wrong answer" to the current global financial crisis.

Germany and China should join hands to facilitate the Doha round talks, he added.

Later on Wednesday, the Chinese delegation, composed of over 200 business representatives, flew to Zurich of Switzerland to continue their procurement tour.

Source: http://www.chinadaily.com.cn/

Blocker put on generic imports

FDA finds violations at drug plant in India
Thursday, February 26, 2009
BY SUSAN TODD
Star-Ledger Staff
Federal drug regulators will stop reviewing all new drug applications from Ranbaxy Laboratories if any studies on the medicines occurred at the company's plant in India, where they said officials fabricated data to make it appear that more than two dozen generic drugs met U.S. standards.

It is the second action the Food and Drug Administration has taken against Ranbaxy after years of investigating violations at the company's Paonta Sahib facility. Regulators said they only recently secured enough evidence to begin rejecting new drug applications from Ranbaxy, which has offices in Princeton.

Last year, the agency barred Ranbaxy from importing active pharmaceutical ingredients and more than 30 generic drugs made at Paonta Sahib and two other plants where regulators discovered violations of U.S. manufacturing requirements.

Ranbaxy is one of the world's largest manufacturers of generic medicines -- the less expensive copies of brand name prescription drugs. In 2007, the company had global sales of $1.5 billion, including $390 million worth of business in the United States.

"Ranbaxy will continue to cooperate with the Food and Drug Administration," the company said in a statement issued from its headquarters in India. "No effort or action will be spared to protect key (new drug applications) from Paonta Sahib."

Chuck Caprariello, a spokesman at the company's U.S. headquarters in Princeton, did not return telephone calls.

Regulators did not disclose how many drug applications Ranbaxy has pending before the FDA, but they said false information has been uncovered in some of those applications as well. "Companies must provide truthful and accurate information to the FDA, and when they don't, there will be serious consequences," said Deborah Autor, director of drug compliance.

Federal investigators said the company did not properly test the shelf-life and other safety measures of its drugs and then lied about the results. In one instance, company officials refrigerated drugs then indicated they had been stored at room temperature. At other times, the company lied about the number and frequency of the safety tests it conducted, investigators said.

To address the falsified data, the FDA invoked its application integrity policy against the Paonta Sahib facility. When the policy goes into effect against a company, regulators stop all substantive scientific review of any new or pending drug applications, essentially preventing Ranbaxy from putting any new products on the market. The policy will cover only applications containing data generated by workers at Paonta Sahib, regulators said.

Regulators said they would only resume reviewing drugs from Paonta Sahib if the company "assures the agency of the integrity and reliability of that data." The company will have to put in place a new quality-control plan and agree to inspections by outside auditors.

In all, regulators believe that 25 drugs affected by the problems likely reached the United States although since the import ban went into effect in September, it has likely been months since most of the pills were on pharmacy shelves.

Three drugs tested at the Paonta Sahib plant are still in U.S. circulation because they are manufactured at the company's New Jersey plant. Those drugs are a generic decongestant and generic versions of Merck's Zocor and Bristol-Myers Squibb's Pravachol. Both are widely used cholesterol drugs.

But regulators said the three medicines on the market likely underwent additional testing when they were transferred to the United States for the final phases of production, regulators said.

Despite the fraudulent data, regulators said they have no evidence that any of the drugs are dangerous and recommended that patients continue taking their prescriptions. "We've not uncovered any harm associated with Ranbaxy products currently marketed in the U.S.," said FDA Deputy Director Douglas Throckmorton. "We feel comfortable leaving those products on the market at this time."

In court documents filed last July, the Justice Department described "a pattern of systematic fraudulent conduct" at the Paonta Sahib plant that caused Ranbaxy's drugs to be too weak, too potent or lacking the advertised shelf life.

The Justice Department's investigation was disclosed in a court motion just days after Japanese drugmaker Daiichi Sankyo announced plans to acquire a controlling stake in Ranbaxy. Daiichi went through with the acquisition late last year.

The Associated Press contributed to this report.

Source: http://www.nj.com/

Gold imports on crash course as prices skyrocket

Gold purchases by India, the world’s largest importer of the metal, are down to a trickle because of high prices, prompting local traders and jewellers to reprocess scrap and jewellery to cater to rapidly falling local demand. Gold imports fell by a third to 20 tonnes in January this year from a monthly average of 60 tonnes last year. By all available indications, imports will be negligible in February when prices crossed the Rs 15,000-limit.

Prices of the metal have been hitting record highs in India over the past couple of months, with a weaker rupee adding to the rise in gold prices denominated in dollars.

Bombay Bullion Association President Suresh Hundian said February would probably register the lowest monthly import since 1994, when gold was put on the open general licence list.

Sources in the association estimated that total imports would fall to around 400 tonnes in 2009 — one of the lowest in the last decade, and almost 45 per cent lower than last year’s level.

The fall in imports started in October, immediately after the credit crisis, which resulted in lower demand for Indian jewellery overseas and a consequent fall in exports.

Local traders said Indian consumers were waiting for prices to fall before they resumed gold purchases.

But some of them were also using the opportunity to cash in on the high prices and sell gold and gold jewellery. As a result, immediate import demand dropped, traders said.

All India Gems & Jewellery Trade Federation Chairman Ashok Minawala said scrap gold sales jumped 20 to 25 per cent from the average daily recovery of 500 kg.

“The recovery of used gold has intensified 15 to 20 per cent because of higher prices,” added Ajay Mitra, managing director — Indian sub-continent, World Gold Council (WGC).

Since the yellow metal does not lose any quantity, chemical and physical properties, traders procure gold from retail consumers at a discount.

Typically, for a 10 gram piece of jewellery, a jeweller would pay for 9 to 9.5 grams after factoring in the use of other metals in the product, which would bring the repurchase price to around Rs 13,500.

In contrast, an importer has to pay customs duty of Rs 10,300 per kg. Add to that the 1 per cent value added tax (VAT), 0.1 per cent octroi and 0.1 per cent stamp duty, and total duties add up to 2.25 per cent.

The price differential between imported gold and that recovered from scrap through re-melting was estimated to be around 0.67 per cent, but given the significant savings in duties, the total differential is estimated at 3 per cent, traders said.

Traders also said a part of the recycled gold was being moulded into coins and crude jewellery such as simple bangles that were being exported to markets such as Dubai to leverage the arbitrage opportunity more fully.

Source: http://www.business-standard.com/

Twitter Useful For B2B Marketers

As a business-to-business marketing platform, Twitter has legs. Some 56% of Twitter users say they use the online social communication site for business-related purposes, according to Rodney Rumford, a social-media guru and CEO at Gravitational Media. This stat, based on a survey of 700 Twitter users, suggests the service's business value, alongside its emerging utility for consumer marketing.

"Twitter is a goldmine," Rumford raved, speaking at the inaugural Gravity Summit on Social Media at UCLA Wednesday. He added that a number of big consumer brands are already on the site, such as Starbucks, which currently boasts about 6 million members.

Rumford also noted that small businesses are using Twitter to advertise, citing the example of a gourmet Korean taco truck business in Los Angeles. Since its launch in November, it has built a following through Twitter. "The driver tweets where the truck will be 20 minutes ahead of time, and literally hundreds of people show up," one conference attendee confirmed.

Marketers can use Twitter actively or passively, Rumford says, either by reaching out with promotional messages or setting up a "listening engine" that lets them track consumer sentiment in public postings on the site. Any active marketing must be handled carefully to avoid alienating consumers with the appearance of dishonesty or inauthentic, impersonal messages. "It's not a campaign," he advises, "it's a conversation."

As with blogs, Rumford conceded that "people are going to be saying bad stuff about your brand, and that's OK." He says negative comments can be an opportunity for customer-service intervention.

Yet companies are still mishandling this kind of functionality, Rumford says. He cited Motrin's slow reaction to widespread criticism on Twitter about an ad featuring pregnant women that was seen as misogynist.

On the upside, Rumford said efforts to drive people to particular online destinations can be tracked and measured by Google Analytics. Google also crawls and indexes all the conversation streams on the site.

Justin Goldsborough, social-media manager for Sprint, said the company uses Twitter to track consumer sentiment and customer service. But Sprint also uses Twitter and a corporate blog to coordinate business-related activities, says Goldsborough, who noted the site's growing penetration in all areas of American business.

"Retail employees are on Twitter," prompting some concern among management, but Goldsborough pointed out that it can connect these workers more closely to both customers and bosses. He cited BestBuy, which has a communal blog and chat site used by thousands of employees.

Online social media can be a highly effective advertising medium, but there are some pitfalls that can seriously damage a brand, the speakers warned conference attendees. All the presenters stressed the importance of honesty and transparency in Web marketing that relies on word-of-mouth.

David Reis, the founder and CEO of DEI, an online word-of-mouth marketing company, recalled the condemnation heaped on Belkin, an electronics manufacturer, for paying users $0.65 per post to write favorable reviews of its products on Amazon.com. "Basically, it's a simple problem: They lied," Reis said, emphasizing that marketers should always be forthright about their identities and mission.

Source: http://www.mediapost.com/publications/

US steel imports in January 2009 up by 13% MoM

Based on preliminary reporting by the Department of Commerce, American Institute for International Steel said that total steel imports of US in January were 2.34 million tonnes as compared to 2.07 million tonnes in December 2008, up by 13.3% MoM and a 12.2% YoY decrease as compared to January 2008.

The data show that imported semi finished products decreased by 55.1% YoY in January 2008 as compared to January 2009 from 0.463 million tonnes in 2008 to 0.208 million tons in 2009.

Mr David Phelps president of AIIS said that "The steel market remains depressed, and arrivals reflect that hard reality as imports continue to slow from non NAFTA countries, with exceptions from countries supplying slabs and hot rolled for US foreign owned operations, such as Russia and the EU. With hot end operations in the US operating at low capacity, internationally integrated companies will continue to ship slabs and other steel products such as hot rolled sheet to their US operations as demand justifies."

He added that "AIIS, based on its monthly importer survey, expects arrivals to continue at depressed levels for some months to come. We remain optimistic that the stimulus legislation may breathe some life into the steel market in the second half of the year."

Source: http://steelguru.com/news/

US steel imports in January 2009 up by 13% MoM

Based on preliminary reporting by the Department of Commerce, American Institute for International Steel said that total steel imports of US in January were 2.34 million tonnes as compared to 2.07 million tonnes in December 2008, up by 13.3% MoM and a 12.2% YoY decrease as compared to January 2008.

The data show that imported semi finished products decreased by 55.1% YoY in January 2008 as compared to January 2009 from 0.463 million tonnes in 2008 to 0.208 million tons in 2009.

Mr David Phelps president of AIIS said that "The steel market remains depressed, and arrivals reflect that hard reality as imports continue to slow from non NAFTA countries, with exceptions from countries supplying slabs and hot rolled for US foreign owned operations, such as Russia and the EU. With hot end operations in the US operating at low capacity, internationally integrated companies will continue to ship slabs and other steel products such as hot rolled sheet to their US operations as demand justifies."

He added that "AIIS, based on its monthly importer survey, expects arrivals to continue at depressed levels for some months to come. We remain optimistic that the stimulus legislation may breathe some life into the steel market in the second half of the year."

Source: http://steelguru.com/news/

Nath all set to unwrap exporter gift pack today

NEW DELHI: Commerce and industry minister Kamal Nath is likely to announce a special package for exporters in the foreign trade policy to be announced on Thursday.

The package, aimed at bringing down the cost of operation for exporters hit badly by the global slowdown, will consist of measures such as dilution of export obligations, simplification of rules on service tax refunds and lowering of demurrage charges.

The government looks to reduce bureaucratic delays, relax terms for claiming incentives and ensure timely refunds of input duties, said an official who asked not to be named.

While most of the steps will be non-fiscal in nature, they may include direct sops for exporting products such as textiles and leather affected most by the recession in the US and Europe, the largest market for these items.

The scheme could be on the lines of the existing ‘focus product’ and ‘focus market’ schemes where incentives are given for exporting niche products to new markets. “The commerce department has pushed hard for the scheme. It all depends on whether the finance ministry agrees to give additional funds,” the official said.

A set of measures to dilute the export obligation against duty free import of machinery and raw materials under schemes such as the export promotion capital goods scheme are on the cards. The government may announce lower export obligations and more time to meet them.

The policy will also include measures to simplify procedures for service tax refund to exporters and ensure fast disbursals. Very few exporters have been able to claim service tax refunds because of the complicated procedures. The finance ministry will also relax certain procedures for claiming refund of taxes on input services used in exports, another government official said.

Exporters will be able to claim refund as and when they export, as against the current practice of quarterly refunds. Instead of documentary proof of actual use of inputs, exporters may be allowed to give statement of expenses certified by chartered accountants. In some cases, exporters may also be allowed to give self-declarations.

Another major incentive that exporters could expect is the delinking of grant of benefit under the duty entitlement pass book (DEPB), a popular import duty reimbursement scheme for exporters, with the realisation of export proceeds. Since the global finance crunch is delaying payments, the government does not see any merit in holding back DEPB payments to exporters, the official said.

The global slowdown and the resultant reluctance of the industry to import have also prompted the government to consider revalidating the expired licences for duty free import of capital goods. The commerce and industry minister is also expected to ask the tariff authority of major ports to lower its demurrage charges, as there are delays in shipping out consignments due to overall slowdown in demand.

Source: http://economictimes.indiatimes.com/

Food exports up by 58.38 percent

ISLAMABAD, Feb 25 (APP): Exports of food products during the first seven months of the current financial year witnessed increase of 58.38 percent over the corresponding period of the last financial year.

Overall food group exports were recorded at $1.87 billion in July-January (2008-09) as against the exports of $1.18 billion recorded July-January (2007- 08), figures provided by Federal Bureau of Statistics (FBS) said.

Among the food group, the export of rice increased by 90.9 percent by growing up from exports of $658.7 million during last year to $1.25 billion during the first seven months of the current fiscal year.

According to the figures, export of basmati export during the time under review increased by 72 percent while that of other rice commodities increased by 117 percent.

Exports of fish were increased by 21.84 percent, fruits by 5.43 percent, leguminous vegetables (pulses) by 133 percent, spices by 19 percent, sugar by 73 percent, meat and meat productions by 48 percent while the exports of other food items were increased by 7.01 percent.

However, the exports of vegetables during the time under review were decreased by 19.59 percent while oil, seeds, nuts and kernels exports also decreased by 19.97 percent.

During the month of January 2009 exports of food commodities increased by 4.18 percent as compared to exports of December 2008. Food exports during the month under review were recorded at $215 million as against export of $206 million recorded during December 2008.

Rice exports during January 2009 were increased by 1.89 percent, fish and fish preparations by 16.25 percent, fruits by 24.77 percent, vegetables by 72.71 percent, tobacco by 286 percent, spices by 47.7 percent, meat and meat preparations by 48.14 percent and exports of other food items were increased by 1.79 percent.

Source: http://www.app.com.pk/

Global outsourcing benefited US firms: Nasscom

Bangalore, Feb 26 (IANS) Indian IT industry body Nasscom has reacted cautiously to US President Barack Obama’s remarks on outsourcing, saying global outsourcing had benefited US firms that generate over 50 percent of their business overseas.
“American companies generate more than 50 percent of their business outside the US. Their workforce is global. To be globally competitive, they also depend on globally shared services,” Nasscom president Som Mittal told IANS on phone from the US.

Welcoming Obama’s observations on protectionism, Mittal said late Wednesday that the US president’s statement would have a positive effect on his country’s economy that is going through a recession after a long time.

“Obama has, in fact, supported the need to avoid protectionism. We have to see how he would prevent job losses without resorting to protectionist measures,” Mittal pointed out.

Citing the latest US state department data on employment, Mittal said job losses in construction, retail and manufacturing were more than in services, especially in the IT space.

“Compared to other sectors, job losses in the US tech sector were 2.2 percent as against the overall unemployment rate of 7.2 percent. The US administration will not do anything that would harm its industry or economy, which is driven by the technology leadership its companies enjoy,” Mittal noted.

Asked what impact Obama’s statement on outsourcing would have on the Indian IT and BPO (business process outsourcing) industry, which has been reeling under global recession and financial meltdown in the US, Mittal said he had not seen any specific proposal to the contrary.

“We have not seen any specific proposals to the contrary. The people here (in the US) are more concerned about healthcare, energy, saving jobs and economic recovery than outsourcing, on which Obama used only nine words,” said Mittal.

Admitting that the economic downturn had created turmoil worldwide impacting businesses and job creation, Mittal said global sourcing had helped (US) companies gain the vital competitive edge - time-to-market, transformation of businesses, integration of processes, reduce costs and enhance efficiency, which were key drivers for economic revival, worldwide.

In his first address to the joint session of the US Congress in Washington Tuesday, Obama said there would be no tax breaks to US companies that outsource their jobs abroad.

Earlier, in a statement from New Delhi, Nasscom said it was heartening to note that Obama had supported the need to “avoid protectionism” in his speech.

“This is not the time for protectionism but for global collaboration, if the world is to come out of this economic downturn quickly. We hope that all other countries would support this and continue to be proponents of free trade,” Nasscom said.

Countries the world over have been promoting local investment through tax incentives for job creation while supporting international trade.

Quoting reports by leading analysts, Nasscom said job losses in the tech sector was the lowest in the US, as compared to unemployment in the manufacturing, retail and construction sectors.

“The technology sector is a part of the global value chain and while affected by the downturn, is still expected to grow,” Nasscom added.

Source: http://www.thaindian.com/

Ban import of milk products: Dairy owners

PUNE: Though private dairy owners all over the country will stop purchasing milk from farmers from February 25, this is not likely to affect daily milk supply, as it is largely controlled by co-operative dairies and individual milk suppliers.

Private dairy owners, who export dairy products, have decided to stop procurement of milk from farmers, as they are seeking a ban on imports of cheaper products from countries that offer huge subsidies to farmers. Captain Amitabh Ray (retd), president of the Dairy Industry Export Organisation (DIEO), has communicated the demands in a letter sent to the Central government. However, the agitation will not affect the daily milk supply as it is largely controlled by co-operative dairies and individual milk suppliers.

Speaking to TOI, Vivek Kshirsagar, managing director of the Pune Zilha Sahakari Dudh Utpadak Sangh Maryadit, also known as Katraj Dairy, said, "A small amount of our daily procurement goes to private dairy owners, who are mostly into export of dairy products. If they are going to stop the procurement, co-operative societies like Katraj will certainly have excess milk. In this case, co-operative dairies will find a solution to utilise this excess supply."

In a letter to the Prime Minister, and ministers of commerce and dairy and animal husbandry, the DIEO demanded that duty incentive is provided for exports of milk products under the Vishesh Krishi and Gram Udyog Yojana (VKGUY), with retrospective effect from April 2008. The organisation has also demanded a cash incentive of Rs 15 per kg for export of dairy products under the duty drawback scheme.

"Apart from a ban on the import of dairy products at throwaway prices, we have sought duty incentives under the VKGUY with retrospective effect and additional cash incentives," said Ray. The agitation could create a problem as the manufacturers process about 30 lakh liters of milk every day from nearly three lakh farmers in Tamil Nadu, Andhra Pradesh and Maharashtra.

The VKGUY was launched to promote exports, mainly of agricultural produces, including value-added products. Though milk products were initially granted incentive under this scheme, the government had withdrawn it in April last year before reinstating it in December 2008, Ray said.

Currently, several countries like the US, European nations, New Zealand and Australia offer huge subsidiaries to their exporters, which results into availability of those products at a cheaper rate in India. “It is certainly against the domestic entrepreneurs,” he added.

Pointing out that the procurement of milk is impossible to continue as "Our warehouses are full with dairy products which have become unsaleable," the association has sought fast relief from the government. India exports about 1.5 million tonnes of dairy products annually while the global trade volumes of such items stand at about 37 to 40 million tonnes.

Source: http://timesofindia.indiatimes.com/Pune/

Why diamonds may not be forever

Responding to the global recession, the De Beers diamond cartel has cut back production at its South African mines and reduced the price of its rough diamonds between 15 and 20 per cent.

Even so, industry sources in South Africa estimate that diamond prices could fall another "59-63 per cent." But the real fear of the diamond cartel is not just that retail prices will fall -- it has managed that problembefore -- but that the public will begin to sell its hoard of diamonds, or what is called at De Beers "the overhang."

At the heart of this concern is the reality that, except for those few stones that have been permanently lost, every diamond that has been found and cut into a gem since the beginning of time still exists today. This enormous inventory, which overhangs the market, is literally in -- or on -- the public's hands. Some hundred million women wear diamonds, while millions of others have it as family heirlooms.

De Beers executives estimate that the public holds more than 500 million carats of gem diamonds, over 50 times the number of gem diamonds produced by the cartel in any given year. The moment a significant portion of the public begins selling diamonds, the cartel would be unable to sustain the price of diamonds, or maintain the illusion that they are such a rare stone. Or as the ad slogan claims, "forever."

As Harry Oppenheimer, who headed the cartel for over 25 years pointed out, "wide fluctuations in price, which have, rightly or wrongly, been accepted as normal for most raw materials, would be destructive of public confidence in the case of a pure luxury such as gem diamonds, of which large stocks are held in the form of jewellery by the general public."

The genius of the cartel was creating this "confidence" in the myth that the value of diamonds was eternal. In developing a strategy for De Beers in 1952,advertising agency NW Ayer noted: "Diamonds do not wear out and are not consumed.

New diamonds add to the existing supply in trade channels and in the possession of the public. In our opinion old diamonds are in 'safe hands' only when widely dispersed and held by individuals as cherished possessions valued far above their market price."

In other words, for the diamond illusion to survive, the public must be psychologically inhibited from ever parting with their diamonds. The advertising agency's brief was to make women value diamonds as permanent possessions, not for their actual worth on the market. So it issued subtly designed advertisements to foster a sentimental attachment to diamonds.

Women were induced to think of diamonds as their "best friends."The diamond-holding public, including those who inherited diamonds, had to remain convinced that the gems retained their monetary value. If they attempted to take advantage of changing prices, the retail market would be chaotic.

Even during the Great Depression of the 1930s, there was only a limited overhang, since the mass-marketing of diamonds had begunageneration before the crash. De Beers, shut its mines and borrowed to buy up someindependent mines, andwas able to weather the crisis.

Today, however, with many generations of the diamonds it mass-marketed overhanging the market, and most of global diamond production in independent hands, it no longer is in a position to balancesupply and demand.

Adding to this situation, diamond cutters, manufacturers and dealers, have, as of 10 days ago,an estimated $40 to $50 billion worth of diamonds in mines in the pipeline that will intensify the downward spiral when the gems reach the market later this year. If falling prices shatter the carefully nurtured illusion that the value of diamonds is eternal, and the public begins selling even part of its hoard, De Beer's nightmare scenario would come true: The overhang would flood the market.

Source: http://www.dnaindia.com/

Japan’s Oil Imports Fall on Sagging Industrial Output

Feb. 25 (Bloomberg) -- Japan’s oil imports fell in January for a third month as sluggish industrial output and consumer spending slashed fuel demand.

Japan, the world’s third-biggest crude oil consumer, shipped in 18.69 million kiloliters, or about 3.79 million barrels a day, last month, down 8 percent from a year earlier, a finance ministry preliminary trade report released in Tokyo today shows. Imports of liquefied natural gas dropped 0.8 percent in January to 5.9 million metric tons.

Global oil demand is set to decline a second year in 2009 because of the worsening economic outlook, the International Energy Agency forecast last month. The stronger yen and global recession are sapping demand for exports, causing manufacturers led by Toyota Motor Corp. to cut production.

Japan’s consumption of petroleum products, including automotive, industrial and heating fuel, is projected to fall 4.7 percent in the year starting April, according to the Institute of Energy Economics Japan, a government-run think tank.

Crude and fuel oil requirements by the 10 regional utilities led by Tokyo Electric Power Co. plunged in January by 55 percent and 48 percent from a year earlier, according to data last week from the Federation of Electric Power Companies.

Coal imports dropped 8.7 percent last month to 16.13 million tons, the finance ministry report shows. Utilities burned 6.4 percent less coal for power generation, while their LNG requirements slipped 5.2 percent.

Source: http://www.bloomberg.com/

Toyota, Honda Slash Global Production as Recession Cuts Demand

Feb. 25 (Bloomberg) -- Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Japan’s three-largest carmakers, cut global production last month as the recession and a credit crunch damped demand for new automobiles.

Toyota’s output fell 43 percent to 413,285 vehicles in January. Honda’s production dropped 33 percent to 226,551 vehicles, the most since at least 1999, and Nissan’s slid 54 percent to 145,286 units, the companies said separately today.

Japanese carmakers are slashing output and profit forecasts as the slowing economy and rising unemployment in their largest markets deters consumers from buying new vehicles. Toyota’s domestic output is being cut in half this quarter, compared with a year earlier, as exports plunge and it heads for its first operating loss in 71 years.

Japan’s exports plunged 46 percent in January, resulting in a record trade deficit, the Finance Ministry said today. Vehicle sales in Japan fell the most in 35 years last month. Industrywide auto sales in the U.S. may hit a 27-year low of 10.5 million units this year, according to a forecast from General Motors Corp.

Toyota, which tripled its loss forecast earlier this month, said Japan production fell 40 percent to 209,224 and U.S. production fell 65 percent to 38,245 units.

Honda is widening production cuts in North America by 29,000 vehicles to 1.26 million units for the year ending in March, down from an initial goal of 1.47 million. Japan production is also being cut to 1.15 million units, compared with an original plan for 1.31 million.

Nissan’s latest forecast estimates domestic production will drop 16 percent to 1.06 million vehicles in this fiscal year. Last month the Nissan said its U.S. plants will build vehicles only four days a week indefinitely.

Mazda Motor Corp., Japan’s second-largest car exporter, said global production fell 63 percent to 45,548 units in January.

Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, said global production fell 32 percent to 31,654 vehicles in January. Suzuki Motor Corp., Japan’s second-largest minicar maker, said global production fell 20 percent to 177,085 units.

Source: http://www.bloomberg.com/apps/

Japan's exports plunge 46 percent in January, AS

TOKYO (AP) Japan's exports tumbled 46 percent in January, the fourth straight month of declines, as the global economic slowdown continued to sap demand for its automobiles and electronics. The Finance Ministry said Japan's trade deficit was 952.6 billion yen ($9.92 billion), its highest deficit ever according to local media reports.

January marked the fourth straight month the country was in the red, yet another troubling sign for the country's largely export-driven economy. Japan is mired deep in a recession and its manufacturers have been slashing production and cutting jobs.

Exports to the U.S. fell by over half, as car shipments were down 81 percent. Japan's trade surplus with the U.S. fell to 132.8 billion yen ($1.38 billion).

Previously, exports to smaller Asian economies had propped up Japan's trade surplus, but this is no longer the case, as exports to Asia were also down 47 percent. Japan's trade deficit with China, meanwhile, shot up 61 percent to 562.7 billion yen ($5.86 billion), as the fall of exports continued to outpace that for imports, marking the fifth straight month for a higher deficit.

Source: http://in.news.yahoo.com/

Japan's exports plunge 46 percent in January, AS

TOKYO (AP) Japan's exports tumbled 46 percent in January, the fourth straight month of declines, as the global economic slowdown continued to sap demand for its automobiles and electronics. The Finance Ministry said Japan's trade deficit was 952.6 billion yen ($9.92 billion), its highest deficit ever according to local media reports.

January marked the fourth straight month the country was in the red, yet another troubling sign for the country's largely export-driven economy. Japan is mired deep in a recession and its manufacturers have been slashing production and cutting jobs.

Exports to the U.S. fell by over half, as car shipments were down 81 percent. Japan's trade surplus with the U.S. fell to 132.8 billion yen ($1.38 billion).

Previously, exports to smaller Asian economies had propped up Japan's trade surplus, but this is no longer the case, as exports to Asia were also down 47 percent. Japan's trade deficit with China, meanwhile, shot up 61 percent to 562.7 billion yen ($5.86 billion), as the fall of exports continued to outpace that for imports, marking the fifth straight month for a higher deficit.

Source: http://in.news.yahoo.com/

Consumers can’t be fooled twice

Washington, Feb 24: A high price tag, a label, or an ingredient can trick us into believing that the mediocre product we have bought is of high-quality, but one such mistake is enough for consumers to avoid being fooled by such tactics in the future, according to researchers.

In a new study, researchers have focussed on consumer responses to "biasing cues"—features that consumers assume are related to the quality of the item.

"Often consumers'' beliefs about the relationship between an attribute and product quality are correct," wrote authors Wouter Vanhouche (University of Central Florida, Orlando) and Stijn van Osselaer (Rotterdam School of Management, Erasmus University).

They added: "For example, higher-priced products are often better quality products. However, in many other cases, those beliefs are incorrect. For example, many low-priced products are actually quite good and many high-priced products are actually quite bad. Some attributes are even just irrelevant to product quality or are completely meaningless. For example, putting silk in shampoo does not do anything for hair but consumers may nevertheless expect it to."

Earlier, researchers demonstrated that biasing cues could successfully deceive consumers into buying items.

But in the new study, the researchers wanted to find out whether the same consumers would be deceived a second time.

By using laboratory experiments involving orange juice, polo shirts, and paper towels, it was found that biased quality expectations did not carry over to a second purchase.

In fact, participants learnt from those initial judgment mistakes.

"We found that consumers'' quality judgments were actually made more accurate by the presence of such attributes. The presence of a high price on a low-quality orange juice or a Florida (vs. New Jersey) bottling location on a low-quality juice did not make the consumers more positive about the product one week after trying the product, but helped them to remember that the high-priced or the Florida-bottled juice was bad," said the authors.

Thus, marketers should keep in mind that consumers are not so easily duped.

"Marketers should think twice about trying to mislead consumers by putting high prices on low-quality products or by touting attributes that seem to signal quality but in reality are meaningless. Marketers using such attributes may succeed at getting consumers to try their products, but the misleading actions are likely to backfire at the time of repeat purchase," wrote the authors.

The study has been published in the Journal of Consumer Research.

Source: http://www.zeenews.com/lifestyle/

India sugar output may fall below trade f'cast - min

India's sugar output this year may contract more than trade estimates and the country may import up to 2 million tonnes of raw sugar, the farm minister said on Tuesday.

Trade officials have estimated sugar production in India, the world's largest producer of the sweetener after Brazil, would fall by a third to 18 million tonnes in the year to September 2009, due to lower cane output and falling yields.

"Latest figures seem to be somewhat about 16.5 (million tonnes) and carry stock, last year's, is about 10 (million tonnes)," the farm minister, Sharad Pawar, told reporters.

This month, the government eased the rules for raw sugar imports, which traders have said may amount to 1.5-2.0 million tonnes.

"Looks like about 1 million must have come or been processed, and another either half a million or 1 million there is an immediate possibility to come," Pawar said, citing estimates of the sugar trade and port officials.

Benchmark sugar prices in New York have risen on expectations of imports by India, the largest consumer of the sweetener.

Domestic prices too have risen, with those in the western state of Maharastra, the top producing region, rising to about 21-22 rupees a kilogram from closer to 16 rupees six months ago.

"We have released more than normal, but still the prices are going up. So let us see what happens," Pawar said.

On Monday India said it would impose stock limits on traders to prevent sugar hoarding and lower prices, and traders say the decision would ease the tight supply in India.

The news knocked Indian sugar futures, which breached a 3 percent circuit breaker on Tuesday, while spot prices in top producing state Maharashtra fell 1.7 percent.

"The stock limit will help cool off firm prices and will also impact the futures prices," Mohan Gurnani, chairman of the Bombay Sugar Merchants Association Ltd, said.

India last imported sugar in 2004/05.

For a graphic on India's sugar production and consumption, click: https://customers.reuters.com/d/graphics/IN_PRD0109.gif

For a graphic on India's sugar imports and exports since 1995/96, click https://customers.reuters.com/d/graphics/IN_SGIMEX0109.gif

Pawar also said his ministry would push to ease a ban on exports of wheat products.

"Value added products is one of the suggestions before us, and we'll take the same, I think," he said. "Our recommendation will be wheat products, and use the opportunity for utilisation of our own domestic capacity plus jobs."

Source: http://in.news.yahoo.com/

SEZ exporters to get tax relief

Finance Minister Pranab Mukherjee today accepted the need to rectify an anomaly in the Income Tax Act that results in lesser tax benefits to exporters in the Special Economic Zones (SEZs).

Section 10AA of the Act provides 100 per cent deduction on export profit of SEZ units for a period of five years, but computes it with reference to the total turnover of the holding company. As a result, companies having units in SEZs as well as outside used to get lesser tax benefits.

A change in Section 10AA would require would require Parliament’s approval as it concerns income tax. Mukherjee said the necessary changes in the Act would be carried out during the full-fledged Budget, expected to be presented by a new government in mid-2009.

The present definition is directly affecting companies like Infosys, Tata Consultancy Services and Wipro, which have software development centres in SEZs as well as outside.

“It has been decided to remove this anomaly through necessary changes in the Act when the regular Budget is presented,” Mukherjee said.

The amended Section 10 (AA) will compute export turnover proportionate to the turnover of the SEZ unit and not the entire company. In fact, an empowered group of ministers headed by Mukherjee had, last year, ruled the same.

Welcoming the fact that the problem was recognised in Parliament, Export Promotion Council on SEZs director general L B Singhal said, “This anomaly should be removed through a clarification by the finance ministry and subsequently through an amendment to the Act. A similar situation was observed in cases of export-oriented units and software technology parks, but it was rectified with a clarification and a subsequent amendment to the Act in 2000.”

While welcoming the move, Nasscom requested the government to create parity with the SEZ scheme for small and medium companies through extension of Section 10A/10B of the Income Tax Act.

Source: http://www.business-standard.com/india/

Nano warning: Dealers cut used car prices by 35%

MUMBAI: Close to the launch of Nano, jittery used car dealers have slashed prices by more than 25-35% in recent weeks. Industry officials say dealers are trying to move prices closer to the Rs 1 lakh-mark to be competitive with Nano.

Prices of mid-sized cars are down by over 25% and by 20% for smaller cars. Dealers are offering the four-to-five-year-old Ford Ikon, Maruti Esteem, Opel Corsa or Fiat Sienna for around Rs 1 lakh.

“When the Nano gets launched, the A and B segment (small) cars will see a further correction. Currently, the price erosion is lesser in the A and B segment used cars,” said Vinay Sanghi, chief (new business development for the after-market sector), Mahindra First Choice Wheels.

In recent months, car manufactures have dropped prices of new cars and also started offering discounts to clear inventories. This is having a direct bearing on used car prices, said a few used car dealers ET spoke to. Dealers feel customers are now looking at used cars more closely.

“Why should a customer buy a Nano base variant without AC for a lakh, when he can get a 4-5 year old mid-sized car with all the features for the same price,” said a used car dealer based in Mumbai. The Nano variant with AC is expected to be priced around Rs 1.4 lakh.

Demand for used cars has been sluggish in the recent months. Poor financing options and dull stock market trends have also kept buyers away, say dealers. Besides PSU and co-operative banks, other finance players have also stopped funding used car purchases.

“Banks have become extremely choosy about customers,” said Ayaz Fazulbhoy, a used car dealer in Mumbai. Interest rates for used cars are as high as 15-16%. Industry sources indicate that organised used car dealers are stuck with inventories and have not been able to liquidate stocks given the pressure on margins. Dealers say the launch of Nano may create some momentum in the used car market.

Tata Motors dealers are expected to start bookings for the Nano this month. Company officials indicate that Tata Motors may be able to stand by its promise of launching Nano at Rs 1 lakh before the end of the financial year. Officials close to the project said there may not be too many takers for the base version of Nano and most consumers may opt for the AC version.

Source: http://economictimes.indiatimes.com/

UK company to manufacture shoes in India

London (PTI): The new owner of an ailing Leicester-based shoe company has announced that under the new management, shoes will now be manufactured in India.

Equity Shoes, a 123-year-old company, was closed last month and went into voluntary liquidation after failing to find a buyer. However, it has now been bought by York-based Pavers Shows.

Stuart Paver, managing director of Pavers Shoes, said,

"We are continuing to sell the shoes from Leicester, as well as design and develop them in the city. The manufacturing will be transferred to India."

Paver said his company had been dealing with Equity for the past 30 years and knew the business very well.

Officials at Equity Shoes, which was running as a co-operative, blamed its demise on falling sales and competition from cheap imports.

Duncan Harrod, spokesman for the Community Union, which represented Equity workers, said: "We are always happy to see footwear jobs safeguarded in the UK, but it's a shame Equity shoes will not continue to be made in the UK."

Source: http://www.hindu.com/