Pepper to trade weak on dull export demand

Pepper prices were stable on Saturday’s trade. The April contract gained marginal 63 rupees to settle at 10815 rupees per quintal. Lower arrivals to the spot market are supporting the pullback rally in the spot as well as futures markets. However, export demand for Indian pepper is sluggish because of commencement of new season in Vietnam in couple of days. Market is expected trade weak in the near term with weak export demand and fresh crop arrivals from Karnataka in coming days.

Courtesy: AUM Capital Market Pvt. Ltd.

Source: http://www.commodityonline.com/

Nepal asks India for trade treaty with longer shelf life

Kathmandu (IANS): India and Nepal are seeking to update their nearly 60-year-old trade treaty with the new draft expected to be ready before India goes to staggered polls from April 16.

The draft will be signed into a fresh agreement by the new federal government that comes into being in India in June, officials said.

At the end of the two-day bilateral talks in Kathmandu to review the 1950 treaty that has to be renewed in 2012, Nepal is seeking to increase its time span.

"Currently, the Treaty of Trade has to be renewed every five years," Surya Prasad Silwal, joint secretary at Nepal's commerce ministry who headed the Nepali delegations during the talks, told IANS.

"It was last renewed in 2007 and will continue for five years.

"However, Nepali investors feel five years is too short to gauge the investment climate and set up a venture, which takes nearly four years.

"Nepal is asking for the treaty to be extended to 10 years from now on."

The proposal will now be discussed by the commerce secretaries of both countries.

The talks that ended Friday have come up with other major agreements that are expected to boost Nepal's bilateral trade with India, reduce its ballooning deficit and curb the rampant smuggling due to the open border that causes both sides to lose billions of rupees in revenue every year.

The Agreement of Cooperation between India and Nepal signed in 1972 to control unauthorised trade is now poised for a sea change.

Till now, the pact prevented each from re-exporting third country goods imported from each other. But now, except for forbidden items, the curb will be lifted.

India and Nepal have also agreed to open new trade routes. Now India will throw open four air routes via airports at New Delhi, Mumbai, Chennai and Kolkata. In addition, two more land routes via Brahmadandi and Tanakpur in the west are also in the pipeline.

Nepal has won a significant victory with India agreeing to simplify the cumbersome duty refund procedure.

Now Nepal, which trades with India using mostly the Indian and Nepali rupee, will get the same benefits that India gets from its dollar trade with other countries, including zero excise duty and tax rebate.

India has also agreed to review its quota for three Nepali export items. In the past, these included vegetable ghee, acrylic yarn, copper and zinc oxide.

The changes started with vegetable ghee. Earlier, India's State Trading Corporation was fixed as the canalising agency that determined which Indian states would receive how much of the over 100,000 metric tonne of vegetable ghee that Nepal is allowed to export annually.

Now however, the canalising agent's place has been taken by a Nepal government body and exporters are free to choose the Indian states they want. A similar review of the other three products is also to begin.

The next meeting between the commerce secretaries of both countries will be held in Kathmandu, which will finalise the new draft of the revised treaty and forward it for the final assent to the commerce ministers.

India is land-locked Nepal's dominant trading partner, accounting for over 65 percent of Nepal's outside trade. But while the Himalayan republic exports goods worth about NRS 43-44 billion to India, the imports exceed NRS 100 billion.

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

Chinese trade delegation make inroads into leather, chemical and metal industries

The recent visit of a 50-strong Chinese trade and investment delegation to Sri Lanka opened up new avenues for economic co-operation between the two countries, especially in the leather, chemicals and metal industries, the BOI said in a statement last week.

"During his stay in Sri Lanka, Wang Schicheng, the Vice President of the Light Industry Association of China who headed the delegation stated that Sri Lanka is an excellent location for investment," the BOI said.

He said his delegation was able to learn more about the economic climate of Sri Lanka as well as the generous regime of incentives offered by the Board of Investment to investors.

Light Industries Association of China comprises of many light industries and is the worlds largest manufacturer of leather goods and accessories. In the leather goods area they have around 1 million varieties and 1300 brands and an annual output of 500 million items.

The Board of Investment of Sri Lanka organized one-on–one meetings whereby entrepreneurs from Sri Lanka and China were able to hold discussions on areas for future co-operation. The delegation comprised of a large group of manufacturers of leather goods.

Subsequent to the successful one-on-one meetings, Senaka Silva, Chairman and Managing Director of Saraa Os leather Private Limited, invited the Chinese entrepreneurs to visit the factory at Boralesgamuwa, to help them to evaluate the standards and potential Sri Lanka offers in the production of leather goods.

At the end of the tour at a follow up meeting with the Senior Officials of the BOI, and head of Delegation Wang Schicheng, and Deputy Head of Delegation Ms Fang Min, the visiting delegates said they were impressed by the quality of the products made at Saraa Os Leather, as well as the advanced technology used in the production, and expressed their interest in entering into a joint venture, to enhance capacity and bring in new technologies of manufacture and use Sri Lanka as a platform for value added exports to EU, USA and to regional markets.

Saraa Os Leather began by manufacturing exclusive leather products made out of ostrich hides from which its name is derived. They continue to make products out of exotic leathers such a ostrich but have extended the range of their products include goods made of normal leathers, canvas, raffia, webbing, cotton and synthetic materials.

In addition to this joint venture, Chinese entrepreneurs have expressed interest in setting up new projects in Sri Lanka. One is an investment by Renqiu City Hayuan Chemical Fiber Co, ltd to manufacture chemical fiber and membranes that have wide applications such as in draining and filtration. Dingzhou Jinlong Metal Production Co Ltd who manufactures welding electrodes used to fuse pieces of metal together is the second project. Exchange of information and negotiations are in progress. Both projects are indicators of the interest Chinese enterprises have shown in Sri Lanka as a destination for investment.

"China’s present economic presence in Sri Lanka amounts to 35 companies that operate under the special scheme of incentives the BOI offers investors. There are in addition 46 other Chinese enterprises that operate under the normal laws of the country.

"The total value of Chinese investment in Sri Lanka is US$ 132 million. There is confidence that more investment from China will come to Sri Lanka in spite of the global economic downturn," the BOI said.

Source: http://www.lankatimes.com/