Petrol slashed, diesel hiked

Oil marketing companies today reduced retail petrol prices by `.1.09 a litre and increase retail diesel price by 56 paise a litre with effect from 31st July midnight. After revision, petrol will be sold at `.72.51 per litre in Delhi, `.80.30 a litre in Kolkata, `.80.60 in Mumbai and `.75.78 per litre in Chennai. Diesel will be sold at `.50.40 in Delhi, `.63.22 per litre in Kolkata, `.66.63 per litre in Mumbai and `.62.30 per litre in Chennai.

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 1st August 2014 issue

Rubber4U

Rubber4U - 1st August 2014 Issue

Anti-dumping duty on Rubber Chemicals

Seeks to impose definitive anti dumping duty on imports of Rubber Chemicals originating in or exported from China PR and Korea. More details on: http://rubber4u.com/Public/Arc.pdf

Today, the benchmark RSS4 grade rubber closed at `.137 a kg at Kottayam, while RSS3 grade closed at `.119.33 a kg at Bangkok and Malaysian SMR20 closed at `.101.43 a kg, on Friday. On National Multi Commodity Exchange August 2014 closed at `.137.10 a kg, September at `.134.51, October at `.133.83 and November closed at `.134.67 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥194 a kg, August at ¥193.6, September at ¥196.3, October at ¥199, November at ¥201.7 and the contract for delivery in December 2014 closed at ¥203.8 a kg.

What our readers say: http://rubber4u.com/Public/Views.pdf

IRGA urges Centre to temporarily suspend import

Worried by the prolonged bearish trend in domestic prices of natural rubber, Indian Rubber Growers Association (IRGA) has urged the commerce minister to temporarily suspend import of natural rubber under the advance licence till domestic prices recover.

The rubber farming community has urged the Centre to increase import duty on all finished rubber goods to 8%. IRGA has requested the ministry to revisit the norms for duty-free import of natural rubber. Import duty on natural rubber should be increased up to 40%.

The benchmark RSS4 grade rubber closed at `.140 a kg at Kottayam, while RSS3 grade closed at `.122.26 a kg at Bangkok and Malaysian SMR20 closed at `.102.56 a kg. On National Multi Commodity Exchange August 2014 closed at `.139.80 a kg, September at `.137.70 and October closed at `.137 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥189.8 a kg, August at ¥192.9, September at ¥195.9, October at ¥198.2, November at ¥200.6 and the contract for delivery in December 2014 closed at ¥202.2 a kg. On Tuesday the market is expected to trade in red and it is expected that most active contract December 2014 series may touch a low of ¥199 a kg tag.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Govt to take steps to boost production

India’s foreign exchange reserves rose to a near-all-time high to $317.037 billion, as central bank accumulated dollars to prevent volatility in the forex market.

Government has taken measures to boost the production and export of plantation crops through the Plantation Commodity Boards which provide financial and technical assistance to the growers and the industry.

Finance Minister Arun Jaitley said the schemes to promote export of plantation crops envisage providing assistance for participation in trade fairs, exhibitions, buyer-seller meets, brand promotion, public campaigns and export of value added products.

Natural rubber is not exported in large quantity as India's consumption of rubber is larger than domestic production.

Kerala Finance Minister K M Mani said `.10 crore have been earmarked for rubber procurement in a bid to help farmers who were reeling under crisis due to sharp fall in rubber prices.

Mani agreed with P C George, government Chief Whip’s demand to procure rubber by paying `.5 per kg more than the daily domestic market price of rubber. Agriculture Minister K P Mohanan said a meeting would be convened in consultation with Kerala Chief Minister Oommen Chandy to take a decision on the revised procurement price.

Imports of natural rubber surged due to the price difference in the domestic and international markets, and this trend is likely to continue for the next few months as the tapping of rubber is very low. The imports may match a record this year as rising car sales boost demand for tyres.

Rising natural rubber imports put further downward pressure on domestic rubber prices amidst weak demand. RSS4 grade rubber prices in 2011 was `.245 per kg is now at `.141 per kg. Weaker crude oil prices are also putting downward pressure on natural rubber as petroleum product synthetic rubber becomes more competitive.

The benchmark RSS4 grade rubber closed at `.141 a kg at Kottayam, while RSS3 grade closed at `.122.99 a kg at Bangkok and Malaysian SMR20 closed at `.102.12 a kg. On National Multi Commodity Exchange August 2014 closed at `.141.11 a kg, September at `.139.14, October at `.138.38, November at `.139.80, December at `.140.25 and January 2015 closed at `.141.35 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥189.8 a kg, August at ¥192.9, September at ¥195.9, October at ¥198.2, November at ¥200.6 and the contract for delivery in December 2014 closed at ¥202.2 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 1st August 2014 issue

Rubber4U

Rubber4U - 15th July 2014 issue

Budget at a Glance

Budget 2014-15 - Comprehensive action plan

Finance Minister Arun Jaitley presented the Union Budget 2014-15.

 

Direct taxes:

FM proposes, no changes in tax rate but increases personal income tax exemption to `.2.5 lakh

 

• Tax exemption increased to `.3 lakh for senior citizens.
• 80C exemption limit increased to `.1.5 lakh.
• EMI exemption for self-occupied property raised to `.2 lakh.
• No changes in corporate tax.
• Finance Minister has also provided an investment allowance at 15% for 3 years to manufacturing companies which invest more than `.25 crore in plant and machinery.

 

Net effect of direct tax proposals is revenue loss of `.22,200 crores.

 

Indirect taxes:

 

• Basic custom duty on LED panel below 19 inch made nil.
• Export duty on bauxite enhanced from 10% to 20%.
• Excise duty on footwear reduced from 12% to 6%.
• Reduction in excise duty for specified food package industry from 10% to 6%.
• Increased excised duty on tobacco products and aerated water products with added sugar.

Tax proposals on indirect tax front would yield `.7,525 crores.

Investor’s sentiment pretty bearish

International natural rubber prices once gain dropped below `.120 at Bangkok market, which (RSS3 grade) closed at `.119.72 a kg. While Malaysian SMR20 closed at `.100.71 a kg. SMR -20 almost equivalent to domestic RSS4 grade in quality is being imported to India on a large scale as the price is attractive. In June 2014, India's natural rubber imports increased 41.5% to 32,550 tonnes, due to global price advantage.

With high inventory and slack demand, investor’s sentiment is pretty bearish. The rubber stocks in China's bonded warehouses Qingdao have slipped to a five-month low, due to low demand for the commodity as loan collateral, the country still has nearly 150,000 tonnes of rubber in Shanghai.

Today the benchmark RSS4 grade rubber closed at `.143 a kg at Kottayam, while RSS3 grade closed at `.119.72 a kg at Bangkok and Malaysian SMR20 closed at `.100.71 a kg. On National Multi Commodity Exchange July 2014 closed at `.142 a kg, August at `.142.90, September at `.142, October at `.141.70, November at `.143.75 and December at `.145.80 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥192.5 a kg, August at ¥195.6, September at ¥197.9, October at ¥199.9, November at ¥202.1 and the contract for delivery in December 2014 closed at ¥204 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Key highlights of Indian Railway Budget 2014-15

Key Highlights of the railway budget presented by Railway Minister D.V. Sadananda Gowda in the Lok Sabha on 8th July 2014.

• Receipts in 2013-14 were `.139,550 crore, while expenditure was `.130,321 crore.
• Railway would require `.5 lakh crores in 10 years for modernization and target to carry one billion tonnes of freight every year and also to become largest freight carrier in the world.
• Fare revision will bring in `.8,000 crore; receipts in 2014-15 estimated at `.164,374 crore, while expenditure at `.149,176 crore.
• Of the 676 projects sanctioned, only 356 remain completed.
• 4,000 women constables recruited in RPF to make travel in women`s coaches safer.
• Pre-cooked ready-to-eat meals to be introduced; launching feedback service through IVRS on the quality of food; food can be ordered by SMS and phone.
• Future e-Ticketing to support 7200 tickets per minute and to allow 1.2 lakh simultaneous users.
• Diamond quadrilateral to be launched for high-speed trains; `.100 crore allocated for taking project forward; trains on select routes to be speeded up to 160-200 km per hour.
• Bullet train proposed on Mumbai-Ahmedabad sector.
• Government proposes Office-on-Wheels; internet and workstation facilities on select trains.
• Setting up of logistic parks, private freight terminals on PPP model.
• Connectivity to ports through PPP, procurement of parcel vans and rakes by private parties for resource augmentation.
• Some stations to be developed to international standards through PPP model.
• Outsourcing at 50 major stations; onboard housekeeping to be extended to more trains.
• Resource mobilisation through leveraging PSU resources; Foreign Direct Investment and Public Private Participation. Future projects to be financed on public-private partnership model.

 

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Railways to get proper direction

The first rail budget of the new government will be presented on 8th July by railway minister Sadananda Gowda, which is expected to pave the way for high-speed trains and private sector investment and also would be people friendly, promising more amenities to passengers.

Today the benchmark RSS4 grade rubber closed at `.143 a kg at Kottayam, while RSS3 grade closed at `.121.66 a kg at Bangkok and Malaysian SMR20 closed at `.101.41 a kg. On National Multi Commodity Exchange July 2014 closed at `.142.20 a kg, August at `.142.29, September at `.142.16 and October at `.141.77 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥193.1 a kg, August at ¥195.2, September at ¥197.2, October at ¥199.4, November at ¥201.5 and the contract for delivery in December 2014 closed at ¥203.2 a kg. Tommorrow, July future may touch ¥191 a kg.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 15th July 2014 Anniversary issue

Industry looking for change in inverted duty structure

Automotive Tyre Manufacturers Association, in its pre-budget memorandum to the Finance Ministry, pointed out that tyres in large volumes are finding entry into India while import of raw materials was restricted as a direct outcome of these agreements. Basic customs duty on tyres is 10%, however, under various trade agreements, the duty on tyres ranges between nil to 8.6% facilitating tyre imports into India. While tyres (finished product) can be imported into India at preferential / concessional duties under various trade agreements, rubber (basic raw material) falls in the negative list (no duty concession) across most trade agreements thus impacting the tyre industry both ways. Hence, the government can increase the customs duty on tyres from existing rate of 10% to a higher rate of duty without contravening WTO provisions as there is no bound rate on tyres. The industry is looking to the new government for scrapping of inverted duty structure, so as to make the industry more competitive.

Today the benchmark RSS4 grade rubber closed at `.144.50 a kg at Kottayam, while RSS3 grade closed at `.123.88 a kg at Bangkok and Malaysian SMR20 closed at `.104.78 a kg. On National Multi Commodity Exchange July 2014 closed at `.143.54 a kg, August at `.143.68, September at `.143.10 and October at `.141.87 a kg. On Tokyo Commodity Exchange, July 2014 futures series closed at ¥202.9 a kg, August at ¥205.3, September at ¥208.1, October at ¥210.1, November at ¥212.5 and the contract for delivery in December 2014 closed at ¥214.6 a kg. Tommorrow, the market will be in red and may touch ¥210 a kg level.

For latest rate of Currency Exchange: www.rubber4u.com/Statistic/Notices

What our readers say: http://rubber4u.com/Public/Views.pdf

Read lot more in Rubber4U – 15th July 2014 Anniversary issue