From Chairman's Desk

April 2018

Dear friends,

Exports during 2017-18 were valued at US $ 302.84 Billion registering a growth of 9.78 per cent vis-à-vis 2016-17.

 

Exports during March 2018 were valued at US $ 29.11 Billion as compared to US $ 29.30 Billion during March 2017 exhibited negative growth of 0.66 per cent.

 

Exports of groundnut declined to 4,54,239 tons during April-January 2017-18 from 5,79,321 tons during the corresponding period previous year. In value terms also groundnut exports declined to Rs. 2835.45 crores during this period from Rs. 4381.51 crores in the corresponding period of 2016-17.

 

The declining groundnut exports warrant an immediate support. We have suggested to the government on various levels for providing 5% MEIS incentives for groundnuts (under HS code 1202)

 

Sesame seed exports during April-January 2017-18 increased to 2,79,222 tons in comparison to 2,52,993 tons during corresponding period previous year. In value terms, Sesame seed exports increased to 2409.25 crores from 2232.90 crores.

 

Prices of various oilseeds are hovering around the levels as follows:

 

Sesame Seeds

Basis FOB

Price per MT

(April, 2018)

Natural Whitish 99/1/1

Mundra / JNPT

1280

Natural Whitish 98/2/2

Mundra / JNPT

1270

Hulled autodried Sortex regular 99.95%

Mundra / JNPT

1620

Hulled autodried Sortex Premium 99.97%

Mundra / JNPT

1710

Black 99/1 Sortexed

Mundra

1280

Black Jet Sortexed

Mundra

1420

Ethiopian Whitish Humera

Djibouti

1380

Sudanese Whitish Gederaf

Port Sudan

1360

Sudanese reddish

Port Sudan

1240

Nigerian mixed

Lagos

1240

Nigerian Maidiguri

Tin Can

1300

 

 

Groundnut

Basis FOB

Price per MT

(April, 2018)

India

50/60 Java

Mundra

1070

60/70 Java

Mundra

1030

80/90 Java

Mundra

915

40/ 50 Bold

Mundra

965

50/60 Bold

Mundra

945

60/70 Bold

Mundra

920

50/60 Java

Chennai

1050

60/70 Java

Chennai

1010

 

 

Other Oilseeds/oils

Basis FOB

Price per MT

(April, 2018)

Safflower Seed 1%

JNPT

575-600

Mustard seeds Bold 1%

Mundra

625-650

Mustard seeds small 1%

Mundra

675-700

Castor Seeds

Mundra

600-625

Castor Oil FSG

Kandla, in bulk vessel

1200-1225

Source: Trade Estimates

 

Hon’ble Minister of Commerce and Industry has taken the initiative to draft a new Agriculture Export Policy which is aimed at doubling the agricultural exports and integrate Indian farmers and agricultural products to the global value chain. We are happy to inform you that your Council has been assigned the activity of coordinating with the stake-holders for identification of sector specific strategies for Edible oils/ Oilmeals / Oilseeds sector and submit the report to be used in formulation of Agriculture Export Policy.

 

Directorate General of Export Promotion (DGEP) under Central Board of Indirect Taxes & Customs (CBIC) has asked the Council to submit the issues relating to development and promotion of exports of oilseed and oils from India. Shri Khushwant Jain, Vice Chairman attended the meeting highlighted that the Mandi Tax should be subsumed under GST. We also highlighted severe impact on cash flow situation due to delay in Refund of GST.

 

Since the exporter needs to obtain refund of GST from Central and state governments, he is required to apply for refund with the concerned GST Office, which is given 4 parts. 90% by IGST + 90% by SGST + 10% Balance for both. Thus, there are 4 transactions. This becomes extremely time consuming and complex process. The process becomes more cumbersome if the exporter has to claim refund of SGST with more than one state governments. We have requested that in order to provide quick refund of IGST and SGST, the government should give single refund for both.

 

The difficulty faced by exporters of opening high number of containers after implementation of E-Sealing was also highlighted during the meeting. Circular No. 26/2017-Customs specifies that RFID e-sealed containers will not be put to examination unless there are good reasons or intelligence to warrant inspection of such containers, there shall be no need for examination of such containers once the RFID e-seal is found intact or not tampered with. However, the custom system (RMS) is still selecting large number of containers on a random basis, without any intelligence report and this is causing lot of hardships to exporters, resulting in shutting out of containers and missing vessel.

 

In order to provide support to the growth of Groundnut sector in India, the GST on Groundnut Kernels (HS code 1202) should be reduced from 5% to 1% and GST on blanched groundnuts (HS code 20081100) should be reduced from 12% to 5%. With lowering of GST, the consumption of groundnut kernel and blanched groundnuts will increase leading to higher capacity utilization. In addition, the Groundnut farmers will also get benefitted as they will realize better prices for their groundnut crops leading to higher groundnut cultivation. This has been proposed by the Council

 

On behalf of the Council, Shri Kishore Tanna, Convener Groundnut and myself attended the International Peanut Forum (IPF) 2018 held in Athens, Greece during April 11-13, 2018. I made a presentation about Indian groundnut scenario. Shri Kishore Tanna answered the questions of the participants as member of the supply panel. We also showcased a small film on Indian Peanut Sector featuring strengths of India and excellent food safety systems to meet the quality requirement of importing countries. The film was appreciated well by the international participants. We are sure that such measures will enhance India’s image as consistent supplier of quality groundnuts in world markets.

 

During this visit, we also met with senior officials of DG-Sante in Brussels and discussed the issues faced by Indian groundnut and sesame seed sector. We would like to place on record the excellent support and guidance provided to us by Shri Sarvesh Rai, Adviser - Embassy of India in Brussels.

 

I also had the privilege for being a distinguished speaker to share my views on Indian Sesame seed scenario during China International Sesame Conference 2018 which was held on 20th April 2018 at Qingdao, China. In addition to highlighting strengths of Indian sesame seed sector, we could take advantage of the opportunity to further deepen the ties between IOPEPC and China Chamber of Commerce.

 

I would like to reiterate that the Council is a member driven organization and can effectively work towards promotion and development of oilseed and oil sector based on the feedback and directions from its members. Let me assure you once again that the Council is with all of you and is committed to resolve any difficulty faced by you during exports. I would urge you to send any issues/suggestions to further improve the activities of the Council.

 

 

 

 

With Best Wishes and Regards

 

 

Sanjay shah

(Chairman)

 

 

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