In the last few months, India has seen tremendous growth in export value in several sectors. Be it because of rising prices or rising volumes. Although recently, India has been facing troubles with China, one of its biggest trade partners. China has set up non-tariff barriers which is raising concerns in the Indian export community, at a time when they are already battling with high freight charges and container shortages.
Despite the challenges, India has managed to continue to take several important strides in various industries and markets. China-India trade still reached $100 billion for the first time in 2021, despite the hurdles. India has also turned into a major wheat supplier for countries in South Asia and the Indian Ocean Region, mainly West Asia, as prices in the global market have surged near an eight-year high. Rising freight charges have also resulted in these countries turning to India to meet their wheat demand. Furthermore, India and Indonesia have set an ambitious $50-billion target for bilateral trade over the next six years. We have discussed further latest updates below:
Marine exports from India risk damage as China imposes non-tariff barriers (Source)
Outbound shipments of marine products from the country are facing non-tariff barriers in China, causing concerns for Indian exporters. At a time when exporters are battling twin challenges of container shortage and high freight costs, Covid-19 testing on the imported seafood consignments at the Customs and local authority-level in China has exacerbated the uncertainty over the last two months. Containers are being held up at Chinese ports that has resulted in exporters incurring heavy demurrage charges.
India exports a fifth of its marine products to China. It is also the single market for items such as ribbon fish, croaker and other low-value fish. Blocking exports of such items is hurting the fishing community on the west coast of India. India exported shrimps worth $4.42 billion in the previous fiscal year. During April-August, marine products worth $503 billion were exported to the neighbouring country.
Indian rice rates hit 3.5 month high on strong rupee, supply risks (Source)
Indian rice export rates touched their highest level in three-and-a-half months this week on a stronger rupee and low supplies, while Vietnam rates slipped due to cheaper offers from other Asian hubs. Top exporter India’s 5% broken parboiled variety<RI-INBKN5-P1> was quoted at $363 to $367 per tonne this week,up from $362 to $365 last week. Prices have risen for three straight weeks.
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EEPC: Indian iron, steel export valued at $2.2 billion in September 2021 (Source)
Indian exports of iron, steel and its products in September 2021 were valued at $2.2 billion, up 136% over corresponding month of previous year. The EEPC analysis showed that exports of automobiles, including two and three wheelers during September 2021 were valued at $1.47 billion, up 25% over corresponding month of previous year.
During September, the US remained top destination for engineering goods exports with the total value of the shipment at $1.29 billion, up 12.2% compared to $1.5 billion in the same month last year. China was the second biggest market with total shipments growing 49% over corresponding months of previous year.
Indian Mills Need To Export More Sugar Without Subsidy (Source)
India’s mills need to export 6 to 7 million tonnes of sugar without government incentives in 2021/22 to bring down inventories and ensure domestic prices remain firm despite surplus production, a government official said. Sugar exports by the world’s second biggest producer could cap global prices, which hit a 4-1/2 year high this month on expectations that supplies from top producer Brazil will decline as a result of drought and frosts.
After shipping a record 7.2 million tonnes of sugar in the previous season, Indian mills have so far signed contracts to export 1.8 million tonnes in the 2021/2022 marketing year from Oct. 1.
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