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 FRANCE TO FACILITATE MOVEMENT OF INDIAN PROFESSIONALS
JOINT STATEMENT ON THE 14^TH SESSION OF THE INDO-FRENCH JOINT COMMITTEE

 New Delhi:  May 31, 2006

          Welcoming recent trends in bilateral trade and investment, India and France have agreed to make concerted efforts to further expand bilateral trade and investment.  Both sides have agreed to facilitate the movement of business persons, professionals, student, interns and tourists, as this would help in the expansion of business linkages between India and France.  France has indicated that its future legislation on immigration present under examination by the French Parliament will open new avenues for foreign qualified professionals and students to access the French market on a temporary basis.   The French authorities are also ready to solve the problems faced by Indian companies on a case by case basis.    This is indicated in the joint statement of the 14^th Session of the French-Indian Joint Committee which was signed in Paris today by Shri Kamal Nath, Union Minister of Commerce & Industry, on behalf of the Government of India and Ms. Christine Lagarde, the French Minister of Foreign Trade on behalf of the Government of France.   The one-day Joint Committee Meeting (JCM) was co-chaired by Shri Kamal Nath and Ms. Lagard.

          Both sides recalled that the visit of the Indian Prime Minister Dr. Manmohan Singh to France, in September 2005 and the visit of President Jacques Chirac to India in February 2006 were strong illustrations of the common commitment to further strengthen bilateral economic and commercial ties. The two governments have also targeted to double bilateral trade within 5 years. 

          Two-way trade between India and France was around US $ 3 billion in 2004-05, indicating a growth of 26%.  

          Both sides reviewed market access issues faced by their exporters with the Indian side urging agreement between the French Agricultural Ministry and the Indian Export Inspection Council (EIC) in order to facilitate export of Indian agricultural food and fisheries products to France.   India has also pressed for acceptance of the EIC certification, especially for products where specifications have not been harmonised within the European Union (EU).

          The French side appraised India about its action plan to promote trade and investment by French small & medium enterprises (SMEs) in India and also indicated that French companies in the financial services and retail sector were eager to invest in India.   

          The Indian side also urged the support of France for the recognition of Indian whisky by the European Commission. 

          Earlier, in his address Shri Kamal Nath said that India looked forward to a positive role by France as a leading member of EU on various market access issues relating to Indian goods and services in Europe.

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INDIA, US AGREE ON ACTION PLAN TO INCREASE BILATERAL ECONOMIC ENGAGEMENT
FOURTH MEETING OF THE US-INDIA TRADE POLICY FORUM CONCLUDES

 New Delhi:  May 30, 2006

          The fourth meeting of the US-India Trade Policy Forum was held here today.    The meeting was co-chaired by Ambassador Karan Bhatia, Deputy United States Trade Representative (DUSTR) and Shri S.N. Menon, Commerce Secretary.

          The agenda included discussion on tariff and non-tariff barriers; agriculture; investment; services and intellectual property rights. The discussions on all these issue areas took place in a spirit of cooperation and mutual understanding.   Information on these issues was exchanged so as to have a clearer comprehension of each other’s concerns and to outline, where possible, steps to address these concerns.   Both sides developed an action plan to move forward to a higher level of bilateral economic engagement in preparation for the forthcoming visit of Shri Kamal Nath to the US.

          In addition, Ambassador Bhatia met Shri Kamal Nath, Union Minister for Commerce & Industry, on 29^th May, 2006, where they reviewed the present level of bilateral trade.    Both acknowledged that the present level of bilateral trade is far below potential and renewed the commitment to work towards achieving the target of doubling trade (to approximately US $ 60 billion) in three years.   It was agreed that the Trade Policy Forum provides a mechanism to strengthen the bilateral environment in order to achieve that goal.

          The next meeting of the Trade Policy Forum will be held on 22^nd June, 2006 in Washington, DC at the Ministerial level.

          The US-India Trade Policy Forum is an institutional arrangement between the two governments to discuss trade and investment issues.   Trade Policy Forum was launched during the visit of Indian Prime Minister Dr. Manmohan Singh to the US in July 2005.   The inaugural session of the Forum was held in November 2005 in New Delhi, the second session of the Forum was in February 2006 in Washington, DC and the third meeting was held in March 2006 in New Delhi.

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 Index of Six Infrastructure Industries (Base: 1993-94=100) April 2006

The Index of Six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 206.6 (provisional) in April 2006 and registered a growth of 6.7% (provisional) compared to growth of 6.0 % in April 2005. .

Crude Petroleum

Crude petroleum production (weight of 4.17% in the IIP) registered a negative growth of 1.9% (provisional) in April 2006 compared to 0.4% in April 2005.

Petroleum Ref. Products

Petroleum refinery production  (weight of 2.00% in the IIP) registered a growth of 13.5% (provisional) in April 2006 compared to a negative growth of 7.7% in April 2005.

Coal

Coal production (weight of 3.22% in the IIP) registered a growth of 3.4% (provisional) in April 2006 compared to 8.2% in April 2005.

Electricity

Electricity generation (weight of 10.17% in the IIP) registered a growth of 5.6% (provisional) in April 2006 compared to 3.0% in April 2005.

Cement

Cement production (weight of 1.99% in the IIP) registered a double digit growth of 11.7% (provisional) in April 2006 compared to 9.9% in April 2005. .

Finished (carbon) steel

Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of 8.6% (provisional) in April 2006 compared to 16.9% (estimated) in April 2005.

N.B: Data are provisional. Revision has been made where revised data were obtained from the sources.

 N.B: Indices and Growth rates are provisional

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

New Delhi, May 30, 2006

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KAMAL NATH LEAVES FOR FRANCE TO ATTEND INDO-FRENCH JOINT COMMITTEE MEETING

 New Delhi: May 30, 2006

 Shri Kamal Nath, Union Minister of Commerce and Industry, left this morning on an official visit to France where he will co-chair the 14^th Session of the Indo-French Joint Committee Meeting (JCM) along with the French Minister of Foreign Trade Ms. Christine Lagarde scheduled to be held in Paris tomorrow.   The Joint Committee is an important institutional mechanism for furthering trade and economic cooperation between India and France and the 14^th Meeting is likely to identify fresh avenues for giving a boost to bilateral cooperation in diverse sectors.    

 Besides the Joint Committee Meeting, Shri Kamal Nath will meet Mr. Thierry Breton, the French Minister of Finance tomorrow and Mr. Dominique Bussereau, the French Minister for Agriculture, day after tomorrow in Paris.

 Shri Kamal Nath, who is heading a 20-member high-powered delegation of Indian CEOs led by the FICCI President, Mr. Saroj Poddar, is also scheduled to participate in the Indo-French Business Meeting besides having individual meetings with French CEOs in Medef International on 1^st June, 2006.  The Indian CEOS delegation is expected to raise several issues with the French authorities and business leaders, particularly India’s concerns on market access and free movement of professionals and various administrative issues.  For instance, Indian exporters in some sectors especially textiles and chemicals face high tariffs and non-tariff barriers in France while lack of information on market access regulations and testing requirements in France hinder Indian exports especially of processed food items.   Similarly, there is the issue of high cost of registration and approvals for supplies into France.

The Minister will also speak on “India-The New Economic Paradigm” at the International Foreign Relations Institute (IFRI) in Paris tomorrow and participate in the Destination India event (India-France Investment Meet) organised by the FICCI / CII and Medef on 1^st June, 2006. 

         France is India’s fifth largest trading partner in the EU and Indo-French trade has been growing over the years.  India’s two-way trade with France is about us $ 3 billion (2004-05), growing by 26 % annually.

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EXPORTS SHOW RECORD 27% GROWTH IN APRIL – FIRST MONTH OF THE CURRENT FINANCIAL YEAR 2006-07
INDIA’S FOREIGN TRADE: APRIL 2006-2007

 New Delhi: May 26, 2006

 India’s merchandise exports in the first month of the current financial year (April 2006) has shown a record increase of over 27% in US dollar terms.  Commenting on this trend, Shri Kamal Nath, Union Minister of Commerce & Industry, has expressed satisfaction that the growth rate witnessed in the last two years is not only being maintained but accelerated.  Exports during April, 2006 are valued at US $ 8346.79 million (provisional) which is 27.08% higher than the level of US $ 6567.99 million (provisional) during April, 2005. In rupee terms, the exports were Rs.37518.08 crores, which is 30.59% higher than the provisional value of exports during April, 2005. (The final reconciled figure of exports for April 2005 is US $ 7627.20 million/ Rs.33362.30 crores)

 India’s Imports during April, 2006 are valued at US $ 12560.93 million (provisional) representing an increase of 20.52 % over the level of imports valued at US $ 10422.54 million (provisional) in April, 2005. In Rupee terms, the imports increased by 23.84 %. (The final reconciled figure of imports for April 2005 is US $ 10764.70 million/ Rs.47086.10 crores)

Oil imports during April, 2006 are valued at US $ 4159.15 million (provisional) which is 34.65 % higher than oil imports valued at US $ 3088.85 million (provisional) in the corresponding period last year.  Non-oil imports during April, 2006 are estimated at US $ 8401.78 million which is 14.56% higher than the level of such imports valued at US $ 7333.69 million in April, 2005.

          The trade deficit for April, 2006 is estimated at US $ 4214.14 million which is higher than the deficit at US $ 3854.55 million during April, 2005. 

           Tables giving details of merchandise exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence & Statistics (DGCI&S) / Kolkata, are attached.

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 KAMAL NATH TO INAUGURATE NEW IPR OFFICE IN MUMBAI TOMORROW
TO PARTICIPATE IN EXPRESS PHARMA EXCELLENCE AWARDS FUNCTION

 New Delhi: May 24, 2006 

          Shri Kamal Nath, Union Minister of Commerce & Industry, is scheduled to inaugurate the new Intellectual Property Rights (IPRs) office at Antop Hill, Wadala, in Mumbai tomorrow.   Dr. Ashwani Kumar, Minister of State (Industry), Ministry of Commerce & Industry, will also be present along with other senior officials of the concerned agencies.   

          Shri Kamal Nath is also scheduled to meet the Chief Minister of Maharashtra tomorrow to discuss the status of industrialisation and investments in Maharashtra. On 26^th May, the Minister will deliver the Walchand Memorial Lecture on “India’s Foreign Trade and WTO” at the Maharashtra Chamber of Commerce, as well as participate in the Express Pharma Excellence Awards” function of the Indian Express Group of newspapers.   

          In response to emerging challenges posed by the new developments relating to IP systems, all the laws relating to intellectual property have been amended and new law enacted.    

          Government has also embarked on a major modernisation programme for all Intellectual Property Offices and committed Rs.147 crore for infrastructure creation and upgradation of these offices. Out of this sum, over Rs.125 crore have already been utilised. This includes computerisation, networking of the all offices, new buildings, and improved facilities including e-filing, electronic register, online search capabilities, extensive application of information technology in the administrative and technical functioning of the offices, human resources development through recruitment of technical manpower and specialised training.    

          Modern IPR offices have already been set up in the 3 metros – Delhi, Kolkata and Chennai.  With the IPR office to be inaugurated by Shri Kamal Nath in Mumbai tomorrow, all the 4 metros would be covered.

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 DEVELOPMENT MUST BE PRIMARY FOCUS OF WTO DOHA ROUND NEGOTIATIONS
STATEMENT OF ASHWANI KUMAR AT WEF REGIONAL CONFERENCE AT SHARM El SHEIKH (EGYPT)  

New Delhi: 24^th May, 2006 

          Dr. Ashwani Kumar, Minister of State for Industry, has said that India believes that the development objectives of the Doha Round must remain the primary focus of multilateral trade negotiations. Speaking at an interactive session on “Trading for Global Integration” at the World Economic Forum (WEF) Regional Meeting at Sharm El Sheikh in Egypt recently, Dr. Kumar stated that the expansion of international trade would increase job opportunities across the globe.  He stated that the key barometer of the resilience of Indian economy would be the competitiveness of its manufacturing sector, more particularly of the Small and Medium Enterprises (SMEs) which were responsible for millions of jobs throughout the country. He stated that the Indian Government was evolving policy responses that would enable it to manage the impressive economic growth consistent with equity and social justice so that the poorest of the poor could become the beneficiaries of growth.  

          Dr Kumar was joined on the Panel by Mr. Rachid M. Rachid, Minister Trade and Industry Egypt, Jim Kolbe, Congressman from Arizona (republican) USA, John K. Defterios, Group Vice President Content and Anchor, UK and Italy, FBC Television UK and Claude R. Begle, Chairman Division Board, DHL Express (Germany). 

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FDI IN IT SECTOR INCREASED BY A RECORD 700%
IN THREE YEARS: KAMAL NATH 

New Delhi: 23^rd May, 2006

           Foreign Direct Investment (FDI) into India’s information technology  (IT) sector have shown a record increase of over 700% in the last three years, having gone up from Rs.543.66 crore in 2003 to Rs.4206.68 crore in 2005, Shri Kamal Nath, Union Minister of Commerce & Industry, informed the Lok Sabha in a written reply to an Unstarred Question today. 

          “FDI, apart from bringing in capital, brings in state-of-the-art technology, good management practices and improved skills to our employees, thereby enhancing competitiveness of the domestic industry in the international market.  It also generates additional employment opportunities.    Software exports have also increased in the IT sector in the last 3 years”, he said. 

          FDI upto 100% is allowed under the automatic route in the IT sector and IT-enabled services.  

          No new FDI guidelines have been framed for the IT sector.    The extant guidelines were issued in 2000, he said. 

          In reply to another question in the Lok Sabha, Shri Kamal Nath indicated that FDI received in the Research & Development (R&D) sector during the last three years was US $ 26.05 million.    FDI approvals issued for R&D amounted to US $ 27.23 million during the above period. 

          As per the UNCTAD survey 2004 contained in the UNCTAD’s World Investment Report 2005, India has a share of 25% of R&D locations among the developing countries.  The survey ranks India as the sixth global destination for R&D offshoring.  

          The current policy permits FDI upto 100% on the automatic route in R&D services.  In addition, income tax concessions are available under the Income Tax Act for earnings from R&D activities, Shri Kamal Nath said. 

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Dr. ASHWANI KUMAR MEET SHIMON PERES

 New Delhi: 23^rd May, 2006

 Dr. Ashwani Kumar, Minister of State for Industry, who is currently in Sharm El Sheikh, Egypt to attend the World Economic Forum’s Regional meeting met the Israeli Vice Premier and Elder Statesman Shimon Peres and discussed the future of Indo –Israeli economic relations. Dr. Kumar expressed appreciation for Israeli co-operation with India in the field of advanced and high technology; including defence.

          Mr. Shimon Peres appreciated India’s commitment to democracy and its democratic management of a complex pluralist society. He expressed the hope of visiting India at the earliest opportunity to further consolidate the deepening of Indo-Israeli relations and conveyed his greetings to PM Manmohan Singh. Dr. Kumar conveyed to him greetings of PM Manmohan Singh. 

          Mr. Peres expressed appreciation for Pt Nehru’s vision for India while Dr. Kumar complimented him for his statesmanship contributing to the peace process in the Middle East. Dr. Kumar was accompanied to the meeting by India’s Ambassador to Egypt Mr. Gopinathan.

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KAMAL NATH AND DAYANIDHI MARAN ATTEND STC’S GOLDEN JUBILEE CELEBRATIONS – SPECIAL POSTAL
COVER RELEASED

 New Delhi: 22^nd May, 2006

Shri Kamal Nath, Union Minister of Commerce & Industry, while attending the Golden Jubilee Celebrations of STC here today, lauded the role played by the organisation in promoting exports and hoped that it would contribute its mite to the government’s plan of doubling India’s share in world trade by year 2009. Shri Kamal Nath noted the achievements made by the country in recent years in the field of foreign trade and said “that the performance during 2004-05 and 2005-06 has changed the entire perception of India”. The Minister noted that unlike many other public sector organisations, STC has worked in collaboration rather than competition with the private sector.  He said “spectrum of services provided by STC to private exporters and importers is a unique example of public and private sector cooperation.  This proves beyond doubt all the two sectors can jointly work towards attainment of national objectives”.  The Minister emphasised that in today’s liberalised trading environment, STC ought to be innovative and suggested that it could plan backward integration through development of infrastructure and forward integration in the form of brand marketing and retailing. Shri Dayanidhi Maran, Minister for Communication  & Information Technology and Shri Jairam Ramesh, Minister of State for Commerce & Industry, also attended the celebrations along with Shri S.N. Menon, Commerce Secretary and Dr. Arvind Pandalai, Chairman & Managing Director, STC.

On the occasion, Shri Maran released a Special Postal Cover to mark the occasion and presented the first copy to Shri Kamal Nath. Shri Maran commended the role played by STC in providing technical, marketing and financial assistance to exporters and arranging for import of machinery and raw material for export production and said “STC has served as the trading arm of the nation during the past 50 years and its achievements have been truly impressive”. 

STC recorded a growth of 35% in profit before tax during 2005-06 and registered a growth of 88% in exports which exceeded Rs.1000 crore mark.

         The commodity basket for exports includes wheat, rice, castor oil/seed, tea, jute goods, spices, sugar, other agro products, chemicals, drugs, pharmaceuticals, steel raw materials, coke, iron ore, light engineering goods, construction materials, consumer goods, sports goods, processed foods, marine products, textiles, garments, leatherware, gems & jewellery, etc. 

           STC’s import turnover during 2005-06 has been of the order of Rs.5500 crore. The year saw a major shift in the composition of import turnover. During the year, STC systematically brought down imports of bullion from 60% of the total turnover in 2004-05 to 32% of the turnover in 2005-06 in view of declining trading margins. However, the Corporation has achieved substantial growth in several other areas of imports. Thus, excluding bullion, import turnover has grown by 26% over previous year. Import sales of hydrocarbons, minerals and metals have grown by over 40% to reach Rs.1663 crore. Major items of import by STC include gold, silver, edible oils, fertilizers, metals, minerals, hydro-carbons, petro-chemicals, FMCG Goods, IT products and pulses.

           The Corporation has been able to improve its corporate image in the world market and among associates/trade associations, etc. According to various surveys of India’s Top 500 Companies, STC has been ranked 19^th in terms of sales and 12^th in terms of growth in sales during 2004 (over 2003) by Economic Times, 24^th in terms of sales by Chartered Financial Analyst and 73^rd by Dun & Bradstreet Information Services Pvt. Ltd.

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 Dr. ASHWANI KUMAR MEETS PAKISTAN PM – WEF IN EGYPT

New Delhi: 22^nd May, 2006

On the sidelines of the World Economic Forum regional meeting at Sharm El Sheikh, Egypt, Dr. Ashwani Kumar, Minister of State (Industry), met Prime Minister Shaukat Aziz of Pakistan and conveyed to him the greetings of Prime Minister Dr. Manmohan Singh. He also met leaders from various parts of the Arab world and had an informal interaction over breakfast with Mr. Youssuf Boutros Ghalli, Egyptian Minister of Finance.

  Dr. Kumar met with the Egyptian Minister of Trade and Industry, Mr. Rachid M. Rachid, and Dr. Mahmoud Moheddin, Investment Minister of Egypt. Mr. Rachid and Dr. Kumar agreed on the need to enhance economic and commercial relations between India and Egypt by expanding two-way trade and investment flows. Dr. Rachid expressed Egypt’s keen desire to receive a business delegation from India and expressed a willingness to lead a business delegation from Egypt to India. Dr. Kumar impressed upon the need for greater economic engagement between India and the Arab world and appreciated the leadership of Egypt in contributing to peace and stability in the Middle East.

 Dr. Kumar expressed the hope that a strong economic growth across the Arab world, particularly in GCC (Gulf Cooperation Council) countries will provide an opportunity for expansion of Indo Arab economic engagement. Arab leaders expressed a keen desire to learn from the success of the Indian model of economic growth because of the many similarities between the two regions.

          Dr. Kumar also exchanged views with Deputy Prime Minister of Bahrain Sheikh Mohamed Bin Mubarak, Mohamed Rachid Finance Minister of Tunisia and Mr. Aleksey Kudrin Finance Minister of the Russian Federation. Mr. Kudrin informed Dr. Kumar that Russia will invest significant amounts by way of FDI in India in the near future.

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INDIA, POLAND TO STEP UP TRADE TO US $ ONE BILLION – POLAND TO LIBERALISE VISA REGIME FOR
INDIAN BUSINESSES
KAMAL NATH CALLS ON POLISH PM – SIGNS AGREEMENT ON ECONOMIC COOPERATION WITH POLAND

New Delhi: 19^th May, 2006

           India and Poland will strive to raise the level of bilateral trade from 560 million US dollars currently to at least one billion dollars within the next few years. Further, Poland has assured to liberalise its visa regime for Indian businesses as a step towards strengthening trade and economic cooperation between the two countries. This was indicated in Warsaw today, when the Commerce and Industry Minister Shri Kamal Nath called on the Prime Minister of Poland Mr. Kazimierz Marcinkiewicz. The Polish Prime Minister also accepted Shri Kamal Nath’s invitation to visit India with a Polish business delegation.  

          Later, an Agreement on Economic Cooperation between India and Poland was signed by Shri Kamal Nath on behalf of Government of India, and by Mr. Piotr Gregorzwozniak, Minister of Economy, on behalf of the Government of Poland, according to which both sides have agreed to expand and develop bilateral economic relations in all areas of sectors of the economies, based on mutual benefit. In particular, cooperation is envisaged in the areas of mining, oil & gas, energy, geology, industry, information & communication, transport, marine affairs, housing & tourism and agro & food processing.

           Meanwhile, the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Polish Chamber of Commerce have also signed a Joint Business Council Agreement in Warsaw during the visit of Shri Kamal Nath to encourage contacts between commercial organisations and private enterprises between the two countries.

           Despite fundamental changes in trade relations with the CIS region in the past decade, Poland has retained its status as India’s largest market export basket and trading partner in East Europe (EU), after Russia.  And now as a member of the European Union, Poland can truly act as a gateway to Europe as well as act as a supply base for penetrating markets in the CIS region and the Baltic states.

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SPECIAL POSTAL COVER TO MARK STC’s GOLDEN JUBILEE ON MAY 22

New Delhi:  May 19, 2006

           Shri Kamal Nath, Union Minister of Commerce & Industry, will be the Chief Guest on the occasion of Golden Jubilee Celebrations of STC here on 22^nd May, 2006.   To mark the celebrations, a Special Postal Cover will be released by the Minister for Communication & Information Technology, Shri Dayanidhi Maran, who would present the first cover to Shri Kamal Nath.    

                    Over the past five decades, the Corporation made significant contribution particularly in the following areas:  Trade with East European countries; Handling canalised exports and imports of items varying from small drugs to bulk commodities such as edible oils, cement, sugar, newsprint, wheat, urea, etc.; Price support operations to ensure remunerative prices to growers for their crops such as raw jute, shellac, tobacco and rubber; Assistance to exporters by providing technical, marketing and financial assistance, arranging import of machinery and raw material for export production, setting up design centres, providing testing laboratories, taking products of small manufacturers to overseas markets by organising their consortia, participation in exhibitions and trade fairs, etc.; Import of bulk quantities of essential consumer items like wheat and sugar, sometimes at very short notice etc. 

          STC has grown from strength to strength. Set up with a starting capital of Rs.1 crore, it has since raised its equity capital to Rs.30 crore, of which, Rs.28 crore has been added by way of capitalization of reserves. In addition, STC has reserves worth Rs.300 crore today. The Corporation has been consistently earning profits ever since its inception and has contributed a sum of about Rs.800 crore to the public exchequer by way of payment of dividends and taxes. 

          The State Trading Corporation of India Ltd. (STC) was set up in 1956 primarily with a view to undertake trade with East European Countries and to supplement the efforts of private trade and industry in developing exports from the country.  The Corporation is registered as an autonomous company under the Companies Act, 1956 and functions under the administrative control of the Ministry of Commerce & Industry. 

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FALL IN IMPORT OF SENSITIVE ITEMS DURING APRIL 2005 -FEBRUARY 2006

 PRESS NOTE

        The total import of sensitive items have fallen by 8.3% -- to Rs.15086 crore during April-February 2005-06 as compared to Rs.16460 crores during the corresponding period of last year.  

        The gross import of all commodities during same period of current year was Rs.558992 crores as compared to Rs.427456 crores during the same period of last year. Thus, import of sensitive items constitute only 3.9% and 2.7% of the gross imports during last year and current year respectively.   

          Imports of edible oil, cotton & silk, milk & milk products and rubber have shown a decline at broad group level during the period. Imports of fruits & vegetables, spices, automobiles, tea & coffee, Alcoholic beverages and products of SSI have shown increase during the period under reference. 

          In the edible oil section, the imports has decreased from Rs.9558 crores last year to Rs.7863 crores for the corresponding period of this year. A significant feature of edible oil import is that import of crude oil has gone up by 26.4% and that of refined oil have gone down by 75.8%.  The downfall in edible oil import is mainly due to huge shortfall in import of RBD Palmolein, which has gone down by 72% and Other Refined Palm Oil which has gone down by 77%.  

          Imports of sensitive items from Argentina, Benin, China P RP, Cote D’ Ivoire, Egypt A RP, Germany, Guinea Bissau, United Arab Emirates, United States of America, Vietnam Soc Rep etc. have gone up while those from Brazil, Japan, Indonesia, Malaysia. Sri Lanka DSR and Tanzania Rep have shown a decrease.

 Directorate General of Foreign Trade, Ministry of Commerce & Industry

New Delhi, May 19, 2006

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KAMAL NATH SEEKS GREATER ECONOMIC ENGAGEMENT WITH POLAND

New Delhi:  May 19, 2006

          Seeking greater engagement with Poland, Shri Kamal Nath, Minister of Commerce & Industry, has said that India sees Poland as the gateway to Eastern Europe.  The Minister, who is currently on an official visit to Poland, was speaking on the Indian Economy at the School of Economics in Warsaw last evening. 

          Noting that of India’s total merchandise trade (exports plus imports) of around US $ 250 billion, India’s two-way trade with Poland amounts to less than US $ 600 million, even though it is growing at the rate of 43%, Shri Kamal Nath said that he was confident that Indo-Polish relations will move from strength to strength and there would be greater cooperation between the two countries especially in the areas of trade and industry.         

          He said that a ‘new paradigm’ was that of a ‘credible India’ which had a six decade old stable democracy; a rule of law, independent judiciary and a free press; and which had broken out of the cycle of living on the edge of poverty and experiencing a sustained growth of 8%, year after year.  He also pointed out that India’s merchandise exports had crossed US $ 100 billion this year and that FIIs had invested more than US $ 12 billion last year, over and above the more than US $ 8 billion that came in as foreign direct investment (FDI).           

           “At the root of this new paradigm is ‘demographics. World demographics has begun to manifest itself in three related but different ways: (a) a change in the workforce (b) a change in the consumer base, and (c) a change in the type of services that are increasingly in demand”, he added. 

          Poland is the largest country in Central Europe and ranks 8^th in Europe by size of population and 9^th by area. Poland was the first country in Central and Eastern Europe (CEE) to start economic reforms and transition from a command economy to market driven economy.  Poland is a member of WTO and its trade policies are generally in line with its WTO Commitments Poland has joined the European Union on 1^st May, 2004.

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INDIA PROVIDES HIGHEST RETURNS ON FDI – Dr. ASHWANI KUMAR TELLS US INVESTORS

New Delhi:  May 18, 2006

 India provides higher returns on foreign direct investment (FDI) than any other country in the world, Dr. Ashwani Kumar, Minister of State for Industry, told US investors in New York today. Addressing a meeting organised by the India-American Chamber of Commerce in New York, Dr. Kumar said that India was poised for a massive expansion in manufacturing, infrastructure, automobiles and auto-components and food processing, besides telecommunications, and urged investors to seize the moment for availing the huge opportunities in these sectors.

             “Foreign financial analysts have concluded that India provides maximum return on investments, more than even China”, he told the meeting which attended by more than 100 investors including several from major American multinationals.

             Earlier in the week, Dr. Kumar participated in the 35^th annual country day – “India Day” – at New Jersey, hosted by the New Jersey World Trade Council in collaboration with the Consulate General of India/New York, which was attended by over 250 leading business representatives from industries located in the Tri-state area of the US consisting of New York New Jersey and Connecticut. In his keynote address, Dr. Kumar underlined the importance of the Tri-state area as not only a home to nearly 100 Fortune 500 companies but also home to the largest concentration of skilled Indians in the United States. 

             Giving an overview of the progress of reforms in India, Dr. Kumar noted the significant change in the structure of India's GDP over the decade and a half of economic reforms with services sector touching 50% and industry moving up to 27%. “The savings rate of the country also has moved from 23% to 31% during this period.   There are over hundred Indian companies with a market capitalization of over USD 1 billion in India. The fundamentals of the economy are sound and strong and the moment for investment is now”, he said.

             He also highlighted the importance of Indo-US bilateral relations. He said the existing ties between the two countries were based not merely on economic cooperation though it was an important part and gave impetus to the relations.   But the main anchor, he said, “is the ‘shared perception’ of the world order, an order which was not created by them but whose challenges they have no option but to face”. 

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3 COMPANIES APPLY FOR SINGLE BRAND RETAILING

New Delhi:  May 16, 2006

         M/s. Moja Shoes Ltd., Sonepat for FDI by M/s. Tano India Pvt. Equity Fund – 1, Mauritius; M/s. Louis Vuitton Malletier, France; and M/s. Lladro Commercial SA, Spain have applied for government approval for FDI for single brand product retailing.    This was indicated by Shri Kamal Nath, Union Minister of commerce & Industry, in a written reply in the Lok Sabha today.

         The policy is expected to encourage economic activity, employment opportunities and investment in the sector.   Since branded products cater to a market segment different from that catered to by small traders, FDI in single brand product retailing is not likely to affect them adversely, he said.

         Meanwhile, Dr. Ashwani Kumar, Minister of State for Industry, in reply to a question on impact of FDI, said that economic reforms had a positive impact on FDI flows.   Foreign Direct Investment (FDI) equity inflows from August 1991 till March 2006 are to the tune of US $ 38.49 billion.  

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INDUSTRIAL DEVELOPMENT CENTRES IN WEST BENGAL

 New Delhi:  May 16, 2006

         The Department of Industrial Policy & Promotion under the Ministry of Commerce & Industry, operates a scheme to promote industries through the Growth Centre Scheme.   Three Growth Centres have been sanctioned for West Bengal under the Growth Centre Scheme.    These are at Bolpur, Jalpaiguri and Malda.    Land has been acquired in all these Centres.    Plots have been allotted to industrial units and 31 units have been established at Malda Growth Centre so far.

         This was stated by Shri Kamal Nath, Union Minister of Commerce and Industry, in a written reply in the Lok Sabha today.

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Dr. ASHWANI KUMAR TO PARTICIPATE IN INDIA EVENT AT NEW JERSEY TO SHOWCASE TRADE AND BUSINESS
OPPORTUNITIES IN INDIA

New Delhi:  May 15, 2006

             Dr. Ashwani Kumar, Minister of State for Industry, will participate in the India Day at New Jersey (USA) being organised by the New Jersey World Trade Council (NJWTC) tomorrow, 16^th May, 2006, in collaboration with the Consulate General of India, New York, as part of the “International Trade Week” in the third week of May, to showcase new opportunities in India in the areas of trade, tourism and business partnerships.  Ambassador Ronen Sen, apart from eminent speakers from the Wall Street Journal, the International Monetary Fund and the US, Indian Industry will also participate.

             The Tri-state area (represented by NJWTC) consists of 3 states – viz., New York, New Jersey and Connecticut – that have a combined GDP of over USD 1,500 billion which is more than twice the GDP of India and close to that of the People's Republic of China. Ninety Fortune 500 companies have their headquarters in one of these three States. The Tri-state area is a hub of a large number of small and medium companies in sunrise sectors like biotechnology and nanotechnology, many of which are owned /operated by Indian CEOs and find a place in the list of best companies of Fortune and many of them are keen on tie-ups and partnerships.  

     There has already been an immense interest in the Tri-state area for participating in the event, which will provide for exhibits from participating companies as well as panel discussions involving eminent personalities in the areas of business, economics and business journalism from the United States. Government of the State of New Jersey and the Government of New Jersey are expected to participate in the event. Dr. Ashwani Kumar will be among the panelists. 

            The event for India will be the 35th in the series. Other sponsors of the event include Government of India Tourist Office, State Bank of India, the ICICI Bank and the Bank of America.

             NJWTC, a reputed business apex body in Tri-state area in the United States, has, since its inception in 1965, organized 34 annual expositions with as many partner countries including the People's Republic of China and Italy recently.

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 CEMENT PRICE RISE UNACCEPTABLE, SAYS KAMAL NATH – ASKS CEMENT INDUSTRY TO
COME UP WITH SOLUTION BY MONDAY TO CURTAIL PRICES

 New Delhi:  May 12, 2006

           Stating that unjustified increase in cement prices is unacceptable and that government cannot remain a silent spectator to a situation that impacts on other sectors of the economy, Shri Kamal Nath, Union Minister of Commerce & Industry, today asked the cement industry to respond by Monday, May 15, 2006 with its suggestions for curbing the price rise.   The Minister was speaking at a meeting with cement manufacturers convened by him here this afternoon to discuss the issue of the rise in cement prices.  The meeting was attended among others by Dr. Ashwani Kumar, Minister of State for Industry; Dr. Ajay Dua, Secretary (Industrial Policy & Promotion), Ministry of Commerce & Industry; senior representatives of the Ministries of Coal & Railways and top representatives of cement industry including Cement Manufacturers Association; Gujarat Ambuja Cement Limited; J.K. Lakshmi Cement; J.P. Rewa Cement; Grasim Cement; Birla Cement Corporation; and Associated Cement Company (ACC) Limited who together account for over 80% of India’s cement industry.

           “We certainly want the cement industry to grow and be a healthy industry, but limitless profiteering is just not acceptable.  Our studies show that increase in input prices is not commensurate with the extent of the cement price increase.  We want you to tell us by Monday what you are proposing to do.  If we do not hear from you within the next 3 days, government will have to take whatever steps necessary to control the price rise and to explore all options”, he said. 

          Elaborating on Shri Kamal Nath’s observations, Dr. Ashwani Kumar pointed out that even after taking all input cost increases into account, the rise in the retail price of cement should have been about Rs.16 per bag only as against the actual increase of Rs.41 per bag which had taken place.  While there has been an increase of Rs.41 in average price per bag since December 2005, the increase in Mumbai has been Rs.71, in Pune Rs.63, in Goa Rs.79, in Lucknow Rs.48 and Delhi Rs.45. 

           Shri Kamal Nath explained that today’s meeting was in continuation of the meeting earlier held by Secretary (IPP) with cement manufacturers on 2^nd May, 2006 when the industry was urged to carefully look at the pricing mechanism and take effective steps for rationalising the prices.   At the earlier meeting, cement producers indicated that increase in cost of road transportation following the Supreme Court judgement against overloading of trucks; increased dependence of purchase of coal from open markets where prices were high; and high cost of power as the major contributors to the increase in cement prices.

 Background:

           Cement is a decontrolled commodity and its production and prices are governed by economic factors, viz., demand and supply, cost of raw material and other inputs, production & distribution costs.  The cement demand also has a seasonal pattern which also reflects in demand and price.

           An analysis of the average price of cement, as reported for the major distributors across the country shows that while the prices were by and large stable till December 2005, there has been a significant increase every month since December 2005.

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INDIA, MYANMAR TO EXPAND AND DIVERSIFY BILATERAL TRADE

New Delhi:  May 12, 2006

             India and Myanmar had agreed to expand and diversify the bilateral trade, in keeping with the target of raising the two-way trade to one billion US dollars by 2006.  This is indicated in the Agreed Minutes of the Second Meeting of the India-Myanmar Joint Trade Committee (JTC), which was co-chaired by Shri Kamal Nath, Union Minister of Commerce & Industry, on behalf of the Government of India and Brig. Gen. Tin Naing Thein, Commerce Minister, on behalf of the Government of Myanmar.  The Minutes were signed by the two Ministers later this evening.

             In his inaugural address, Shri Kamal Nath remarked that although there had been significant increase in bilateral trade to over US $ 500 million in 2004-05, this was still short of the target set by the two sides at the first meeting of the JTC held Yangan in 2003.  Both Shri Kamal Nath and Brig Gen. Tin Naing Thein emphasised the natural complementarities of the two economies and noted that after Myanmar’s entry into the ASEAN and BIMST-EC, new avenues had opened for greater cooperation on a bilateral and regional/multilateral basis.  

             Shri Kamal Nath noted that in 2004-05 itself, India ranked as the second most important market for Myanmar exports and the seventh most important source of Myanmar’s imports. Today, there is ongoing cooperation in the areas of agriculture, telecommunications, oil/gas sectors and increasing business to business interactions in the private sector.

             On border trade, Shri Kamal Nath flagged the issue of opening of the Pangsau Pass as an additional facility for the benefit of the people of both sides living along the border.   Beside, the border trade commodities basket also needs to be broadened from the present limited list of 22 commodities, he said.

             “Our Bilateral Border Trade Agreement inked in 1994 provides framework facilities by which trade is being carried out through the designated border points of Moreh-Tamu and now Zowkhathar-Rhi since January 2004.  We now hope to add another border trading point at Pangsau Pass. We could also consider expanding the list of commodities that can be exchanged under the agreement. However, we need to study the obstacles that stand in the way of bilateral trade, ­whether they relate to banking, transport or other infrastructure related problems. The JTC should look into this”, Shri Kamal Nath said.

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INDIA TO LOOK AT INVESTMENT OPPORTUNITIES IN MALAWI – FOREIGN MINISTER OF MALAWI MEETS KAMAL
NATH

New Delhi:  May 11, 2006

         India will look at investment opportunities in Malawi and a business delegation from India will visit Malawi shortly to explore possibilities of trade and business cooperation between the two countries.  This was indicated by the Union Minister of Commerce & Industry, Shri Kamal Nath, when the visiting Foreign Minister of Malawi, Mr. Daivew Katsonga, met him today along with the Ministerial delegation from his country.   

         Both the Ministers underlined the scope for further developing and increasing bilateral trade which has doubled from US $ 32 million in 2002-03 to over US $ 63 million in 2004-05. The Foreign Minister of Malawi sought India’s guidance in achieving development and poverty alleviation through trade and commerce and said that “India cannot be ignored” in view the significant economic progress achieved by it in recent years.   

         Shri Kamal Nath responded positively to a request from Malawi to pool purchases of fertilisers so as to pass on the benefit of scale to Malawi, which is a big importer of this item and said MMTC would follow up on this proposal.  The Malawi delegation also requested India to consider their proposal for finding buyers in India for their tobacco – Malawi’s major commercial crop.   

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PATENTS (AMENDMENT) RULES NOTIFIED – A MAJOR STEP FORWARD IN DEVELOPING USER-FRIENDLY IPR
REGIME IN INDIA, SAYS KAMAL NATH

New Delhi:  May 11, 2006

           The Patents (Amendment) Rules 2006 have been notified by the government.   Commenting on the Rules, Shri Kamal Nath, Minister of Commerce & Industry, has said that “the recent amendments to the Patents Rules represent yet another major step forward in India’s endeavour to develop a vibrant and user-friendly Intellectual Property Regime which would facilitate as well as encourage innovation and creativity”. The thrust of the Patents Rules is to introduce transparency, decentralize the functioning of Patent Offices, simplify the procedures and to make them user-friendly, he added.

           Pursuant to the amendment to the Patents Act, 1970 as contained in the Patents (Amendment) Act, 2005, the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, has issued a Notification dated 5^th May, 2006 published in the Gazette of India No. S.O. 657 (E) further amending the Patents Rules, 2003.

           The Patents (Amendment) Rules, 2006 have been finalized through a consultative process involving Patent Attorneys, Industry Associations, Government Departments concerned and other stake holders. 

           In order to decentralize as well as facilitate the patent administration, all patent related activities can now be performed by all the Patent Offices at Kolkata, Chennai, Delhi and Mumbai.

          Patent applications are now to be mandatorily published within one month after expiry of the statutory period of 18 months and, in case of request for an early publication, the application is to be published within one month from the date of request. This step will introduce an element of certainty regarding the date of publication which was hitherto not available. 

With a view to enforcing transparency and ensuring time bound disposal of patent applications, definitive time frames have been prescribed for various activities by the Patent Offices. A patent application now has to be referred to an Examiner within one month of a request for its examination. Further, the Controller will now be required to take a decision on the report of the Examiner within one month of its submission and the First Examination Report has also to be issued within six months of the date of request for examination of a patent application. The time for granting permission to file patents abroad has also been reduced to just 21 days. 

In order to make the system user-friendly, timelines available for applicants and the public have also been extended.  Accordingly, the time frame for making a request for examination has been extended from 36 to 48 months; time for filing a pre-grant opposition extended from 3 to 6 months; time for filing reply to pre-grant opposition extended from 1 to 3 months; and time for meeting the requirements of the First Examination Report increased to 12 months.

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PRICE SPECTRUM BAND FOR PLANTATION CROPS UNDER PRICE STABILISATION FUND SCHEME ANNOUNCED

PRESS NOTE

            The Price Stabilisation Fund (PSF) Trust, Department of Commerce, Government of India, has announced the Price Spectrum Band for the year 2005 for Rubber, Coffee and Tea. The Price Spectrum Band for each commodity has been calculated on the basis of Seven Years’ Moving average of International price for the commodity. The annual average domestic price during 2005 was Rs.56.50/kg for Tea, Rs.53.65/kg for Coffee-Robusta, Rs.104.34/kg for Coffee-Arabica and Rs.60.68/kg for Natural Rubber.  Year 2005 has been categorized as Boom/ Normal/ Distress year for each commodity on the basis of the relationship of average annual Domestic Price to the Price Spectrum Band. Based on the above methodology, the year 2005 has been categorized as Boom year for Rubber, Coffee Robusta, Coffee Arabica and Normal year for Tea.  As no tobacco grower was enrolled under the scheme during the year 2005-06, Price Spectrum Band for tobacco has not been fixed.

            On the basis of Price Spectrum Band 2005, 14882 Tea growers would receive financial assistance of Rs.74.41 lakh from the PSF Trust during the current year.           

            Ministry of Commerce & Industry (Department of Commerce) had launched the Price Stabilisation Fund Scheme in April 2003 for the benefit of growers of Tea, Coffee, Natural Rubber and Tobacco. The objective of the Price Stabilisation Fund Scheme is to provide financial relief to the growers when the prices of these commodities fall below a specified level. 

            The scheme is based on the principle of contribution from the growers and from the Government depending upon boom / normal / distress years, with a provision for withdrawal by the growers during the distress year. The contribution of the participant growers as well as that of the Government is credited to the savings bank account of the participant growers opened for the purpose with any nationalized bank. The contribution of the participant grower / Government in the growers’ account and withdrawal therefrom is decided with reference to the price spectrum band which is fixed and announced every year.

 Price Stabilisation Fund Trust, Ministry of Commerce & Industry

New Delhi, May 10, 2006

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KAMAL NATH CALLS FOR STRENGTHENING COOPERATION WITH JAPANESE SMEs – INVITES JAPAN TO INVEST
IN SETTING UP INDUSTRIAL ZONES

New Delhi:  May 03, 2006

           Calling for enhanced cooperation between small and medium enterprises (SMEs) of India and Japan, Shri Kamal Nath, Union Minister of Commerce and Industry, has said that Japanese SMEs investing in India would receive the highest priority from the Indian government. Interacting with a 35-member delegation of Japanese SMEs (JASME), led by Mr. Koichi Minaguchi, President, Japan Finance Corporation for Small and Medium Enterprises, here today, Shri Kamal Nath also invited Japanese companies to invest in setting up of industrial zones, using India as a manufacturing hub for investment not only in India but in the region as a whole.   Flagging the importance of SMEs of Japan as a hub of technology, the Minister suggested that the Japan Finance Corporation for SMEs could consider setting up an office in New Delhi to provide business information.  SMEs account for as much as 90% of Japan’s production and 70% of the Japanese work force.  

           Dr. Ajay Dua, Secretary (Industrial Policy & Promotion), Ministry of Commerce & Industry and Shri Jawhar Sarkar, Additional Secretary, Ministry of Small Scale Industries, participated in the meeting along with other senior officials from Indian side.   

           The Minister underlined a huge investment opportunities that had emerged with the Indian economy continuing to move on a high growth trajectory and the importance accorded to manufacturing sector in India, especially for generation of employment. 

           Japan is 4^th major investor in India with cumulative inflow of US $ 2.06 billion (6.66%), since 1991. FDI inflows from Japan in 2003, 2004 and 2005 were US $ 94 million, US $ 116 million and US $ 165 million respectively.  Japan is also a major supplier of technology to India with 837 collaborations (about 11% of total).  Japan has globally been a major investing country and has invested US $ 28.8 billion in 2003 and US $ 30 billion in 2004. 

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 US UNDER SECRETARY OF COMMERCE CALLS ON KAMAL NATH

New Delhi:  May 02, 2006

          Mr. Franklin Lavin, Under Secretary for International Trade Administration, US Department of Commerce, called on Shri Kamal Nath, Union Minister of Commerce and Industry, here this evening and discussed bilateral trade and investment possibilities. Both sides underlined the huge untapped potential to increase both bilateral trade and investment. 

          It was indicated at the meeting that an Infrastructure Summit for US investors would be organised in Mumbai by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, on 29-30 November, 2006, back to back with the India Economic Summit of the World Economic Forum and the Confederation of Indian Industry (CII).    As a prelude to this, an event is also planned in Washington in June this year in collaboration with the US-India Business Council (USIBC). 

          USA is India’s largest trading partner and foremost export destination.   At present, it accounts for 16.48% of India’s exports and around 6.26% of India’s imports.     

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CEMENT MANUFACTURES ASSOCIATION TOLD TO CALL MEETING OF ITS MEMBERS TO WORK ON LOWERING OF
PRICES

New Delhi:  May 02, 2006

The government has requested the Cement Manufacturers Association to call a meeting of its members urgently and decide on steps for lowering of cement prices, instead of waiting for the rainy season when cement prices automatically tend to fall.  Conveying this at a meeting held under his chairmanship here this afternoon to discuss the recent increase in cement prices, Dr. Ajay Dua, Secretary (Industrial Policy & Promotion), Ministry of Commerce and Industry, also indicated that the position would be reviewed within a fortnight. Builders’ Association of India (BAI); Cement Manufacturers’ Association; Gandhidham Chamber of Commerce & Industry; representatives from the Ministries of Coal, Power, Railways, Consumer Affairs; Urban Development and Petroleum & Natural Gas and all other stakeholders attended the meeting.                        

Responding to a suggestion from the Builders’ Association to ban exports of cement, Dr. Dua who was assisted by Ms. Charushila Sohoni, Chairman/Tariff Commission, along with representatives of Coal India Limited etc., said that government would not like to take a view on this suggestion at present as India should not lose its export markets which took time to develop.  Instead, the government’s view was that the Cement Manufacturers Association should work out a solution within a fortnight through discussions amongst its members.

The builders said that there had been a very steep increase in price of cement – in fact more than 50% in the 4 to 5 months period, starting from November 2005 and that the increase was particularly steep in the Northern and Western markets compared to the South and the East.  They further observed that the cost of raw materials which went into the making of cement had not gone up significantly during this period nor had the taxation or railway freight in relation to cement. The cement manufacturers on their part explained that they were required to buy more coal in the open market which was being given by Coal India Limited through e-auctions, and that e-auction prices were on an average 40% higher than notified prices. Secondly, there had been acute shortage of power and not only had the price of power had gone up by 10 to 15% but also they were required to set up either their own captive power stations or use diesel, the cost of which had also gone up.  Thirdly, the Supreme Court Order of November 2005 that trucks could not be overloaded compounded the problem, according to the cement manufacturers, who said that the freight cost had also gone up.

Summing up, Dr. Dua remarked that roughly cost increase had been only 15%, but increase in prices in certain cases have been as high as 40 to 50% and on an average was about 30%.  He, therefore, underlined the government’s view that corrective measures would have been taken by the manufacturers to bring down the prices.

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RECORD INCREASE IN OILMEAL EXPORTS FROM INDIA
PERFORMANCE EXCEEDS EARLIER PROJECTION: KAMAL NATH

New Delhi:  May 02, 2006

            Oilmeal exports from India have increased to a record level of 4.42 million tonnes valued at nearly US $ 1 billion in 2005-06, which is an all time record.   The Solvent Extractors Association of India in a note submitted to the Commerce & Industry Minister, Shri Kamal Nath, had said that oil meal exports would cross 3.5 million tonnes in 2005-06, but the export performance has in fact been much better, as the final figures (given below) indicate: 

(a)      Soyabean oilmeal exports account for close to 75%-80% of India’s total oilmeal  exports.  These have peaked at 3.4 million tonnes in 2005-06 nearly 90% higher than last year.

(b)               Rapeseed oilmeal exports were of the order of 0.53 million tonnes.  These account for about 12% of India’s total exports. Exports of rapeseed oilmeals have been stagnant. (This is largely because the MSP for rapeseed renders oil extraction is unremunerative and as a result, there are large carryover stocks of rapeseed / mustard seed with NAFED).

(C)     Castor seed oilmeal exports have risen to 0.2 million tonnes.    This is almost triple the amount exported last year. These now account for about 4.5% of India’s oilmeal exports. 

(d)      Rice bran oilmeal exports are 0.125 million tonnes.   This is also almost triple the amount exported last year.   These now account for about 3% of the exports.     

            Another important feature is the significant headway made in India’s oilmeal exports to East Asia, with total oilmeal exports to the region showing a record increase of 90% in 2005-06.  The extent of the increase to different countries in the region – the major destination for Indian oilmeals – including to China and Japan can be seen from the following table:

Export of Indian Oil Meals to East Asia                                         Qty. in tonnes

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