According to India Exim Bank, India’s merchandise exports during the second quarter of FY22 are expected to be $98.45 billion and non-oil exports to be $85.63 billion as against $74.02 billion and $66.73 billion respectively logged during corresponding period, last year. The rise in India’s exports could be attributed largely to the low base effect, pick-up in growth in advanced economies, and the resultant increase in global import demand, India Exim Bank said. An Increase in commodity prices has also contributed to the increase in India’s exports.
Even after the optimistic expectations, in the short term, India is currently facing a container shortage that could hamper its potential export capacity. The reduction in the number of shipping vessels operating as a result of the Covid-19 pandemic has led to fewer empty containers being picked up, leaving many containers in inland depots or stuck at ports for long durations. The lack of availability of containers and the faster than expected recovery in international trade has pushed up freight rates significantly over the past year with some key international routes seeing an increase in freight rates of over 500% as compared to September last year.
Exports rise 45.76% to $33.28 bn in August; trade deficit widens to $13.81 bn (Source)
India’s exports jumped 45.76% to $33.28 billion in August on account of healthy growth in segments like engineering, petroleum products, gems, and jewellery, and chemicals, even as the trade deficit widened to a four-month high of $13.81 billion. Imports in August rose 51.72% to $47.09 billion, as against $31.03 billion in the corresponding month of 2020, according to the commerce ministry’s data released on Tuesday. The trade deficit swelled to $13.81 billion, compared to $8.2 billion in August 2020. The previous high was $15.1 billion in April 2021. Oil imports in August surged 80.64% to $11.65 billion, while gold imports climbed 82.48% to $6.75 billion
Indian sugar mills sign forward contracts to export 12 lakh tonnes next season. (Source)
Indian sugar mills and traders are all set to witness a bumper export season with the international price of sugar at a four-year high of around 20 cents/lb and sugar flow from Brazil drying up. The India Sugar Mill Association (ISMA) in a press statement said that Brazil will have lower sugar production in the current sugar season (April 2021 – March 2022), owing to dry weather conditions due to drought followed by the incidence of frost. As a result, world prices are expected to remain bullish. Indian mills and exporters have signed forward contracts to export 12 lakh tonnes of sugar ahead of the new crushing season for the crop year 2021-22, starting October.
India considers resuming vaccine exports soon, focus on Africa, says a source (Source)
India is considering resuming exports of COVID-19 vaccines soon, mainly to Africa, as it has partly immunised a majority of its adults, and supplies have surged. India, the world’s biggest maker of vaccines overall, stopped vaccine exports in April to focus on inoculating its own population as infections exploded. The government wants to vaccinate all of its 944 million adults by December and has so far given at least one dose to 61% of them. The resumption of exports deliberations comes ahead of Prime Minister Narendra Modi’s visit to Washington next week where vaccines are likely to be discussed at a summit of the leaders of the Quad countries – the United States, India, Japan, and Australia.
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Indian Pimenta Pepper Exports Hit Record $1.1B (Source)
India remains the largest pimenta pepper exporter worldwide, comprising near half of the global exports. Last year, India managed to strengthen its leading position, with pimenta pepper exports skyrocketing to over 500K tonnes, or $1.1B. China was the key importer of Indian pepper, accounting for 32% of the total volume. The average export price for pimenta pepper from India jumped by +16% y-o-y in 2020. Indian supplies abroad account for 51% of global pimenta pepper exports in physical terms. The average pimenta pepper export price stood at $2,147 per tonne in 2020, increasing by +16% against the previous year.
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