สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 22 ตุลาคม 2556

India's rice exports may fall to 9.3 million tons in 2013-14: USDA

Rice exports from India, the world's largest producer and exporter, are estimated to fall marginally to 9.3 million tonnes in 2013-14 marketing year that started this month, a latest report said.  India re-entered the rice exports market in September 2011 after a four-year ban on exports of non-basmati rice. It had emerged as the world's largest rice exporter in 2012 ahead of its Asian counterpart Thailand. According to the US Department of Agriculture (USDA), rice exports are pegged at 9.3 million tonnes for the 2013-14 marketing year (October-September), slightly lower than 10 million tonnes in the same period last year. However, the USDA noted that the Indian government is unlikely to impose any export restrictions in the near future with the forecast of near-record production and "more-than-sufficient" government-held rice stocks this year. Stating that strong exports may affect domestic price movement, the report said the government has enough rice stocks to control any significant flare up in domestic prices due to the upcoming general elections in 2014. Assuming normal weather conditions during the harvesting period, the USDA said that the country's total rice production is projected to remain near-record 105 million tonnes, as against 104.4 million tonnes last year. A record rice output of 105.3 million tonnes was achieved in 2011-12.

(Source: Economic Times)

Tax reform panel holds first meet, promises more clarity

A government panel, set up to overhaul the country’s tax policies and laws, had its first meeting on Monday and promised to set about recommending structural changes in tax administration and creating an even more conducive environment for voluntary compliance. The tax administrative reform commission (TARC) was announced by finance minister P Chidambaram in his FY14 Budget speech, in the backdrop of the controversy surrounding laws like general anti-avoidance rules (GAAR) last year and to avoid costly litigation against the government, especially after Vodafone dragged the government to court, regarding a $2-billion tax case. At a press conference in the finance ministry, TARC chairman and advisor to Chidambaram, Parthasarathi Shome, said that the main aim of the panel will be to suggest ways to better enforce tax compliance and to increase the base of taxpayers. The panel will also look at bringing changes withing the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) in terms of workforce deployment, hirings, performance assessment, etc.

(Source: Financial Express)

Spice exports see 9% drop, However, on value terms, India records 13% growth

India suffered a setback in the export of spices, especially chilli - the single-largest exported spice - ginger, turmeric and garlic. Overall, shipment during the April-June 2013 period dropped nine per cent at 177,625 tonnes against 195,248 tonnes in the corresponding period of the last financial year. This is mainly because of the economic slowdown persisting in major markets such as Europe and the US, affecting the shipments. Leading exporters told Business Standard that the off-take by Europe has fallen drastically and this will continue in the remaining months of the current financial year, causing a drop in the overall export. High prices of Indian spices, especially pepper and chilli, also keep importers from the Indian market. Rise in local demand keeps the prices high in India, whereas other major producing countries offer lower tags than India. However, on value terms, India recorded a 13 per cent growth. This is because of the rise in the prices of major spices such as black pepper, coriander and value-added products. In dollar terms, the growth was nine per cent at $484.11 million.Most of the spices are facing serious problem on the export front as European and US buyers are showing less interest in importing spices from India.

(Source: Business Standard)

GST trips on oil, liquor and entry tax barriers

With most states opposing the government’s suggestion to bring petroleum and potable alcohol within the ambit of the proposed goods and services tax (GST), a roll-out of the new indirect tax system, planned for April 2015, could be deferred. A delay seems inevitable as consensus on other issues, including entry tax and octroi, eluded a meeting of the Empowered Committee (EC) of state finance ministers on Monday. A few states, including Madhya Pradesh and Maharashtra, were against their abolition since these form a major source of revenue for them. The lack of consensus on key issues will delay the finalisation of the Constitution amendment Bill that needs to be passed by Parliament and also ratified by the states before GST becomes a reality. Taxes on petroleum account for about 13 % of the Centre’s tax revenues and a larger chunk of about 30-40% of states’ revenues by way of VAT. VAT is typically levied in a range between 5% and 20% of the retail price of petroleum products.

(Source: Financial Express)

Economic Section

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